Appropriateness of the on-site investigation decisions and the mixed assessment decisions on a single taxable object;

With respect to a single taxable object, some of the remaining tax base amounts due to on-site investigation decisions are unfair methods that the Corporate Tax Act does not recognize the mixture of the tax base amounts.

Articles 33 and 9 of the Corporate Tax Act

[Defendant-Appellant] Korea Free Education Association (Attorney Hwang Jae-in, Counsel for defendant-appellant)

The litigation performer, flag, Kim Jong-gu, Park Jong-young, and Yellow Indones

Seoul High Court Decision 76Gu631 delivered on August 16, 1978

The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal by the defendant litigant are examined.

The facts determined by the court below are that the plaintiff corporation published and sold high-ranking books for elementary, middle, and high school students [the original book is equivalent to the textbook but is different from the textbook and the general book......(Presidential Decree No. 8660) - The plaintiff corporation reported that there was an income of KRW 87,502,580 as taxable income for the business year 1972, but the defendant's report that the sales amount of the plaintiff corporation in the year 1972 (No. 1-1-1972, Dec. 31, 1972) is 260,464,539 won, and the sales amount is 172,961,959 won was omitted.

Therefore, it is clear that the total amount of earnings for the year 1972, which is objectively shown by the defendant's on-site investigation, is KRW 260,464,539, and according to the facts recognized by the court below, the total amount of losses for the same year recognized on the account books is KRW 25,427,62, so in order to calculate the corporate tax base for the year, it shall be the amount obtained by deducting the total amount of losses from the total amount of earnings under Article 9 (1) of the Corporate Tax Act. In this case, it shall be deemed that the income of the plaintiff corporation accrued in the year 1972 is a single subject of taxation, and it shall be deemed that the total amount (260,464,539 won) was deducted from the total amount of losses (25,427,62 won) as at the time of the initial tax base return, i.e., the total amount of losses for the year 25,627,620,000 won, which shall not be considered as losses.

If we do not agree with the court below's calculation method, a person who has filed a return of tax base faithfully bears a high rate of tax, and a person who has failed to file a return in bad faith bears a low rate of tax (in this case, the income rate for the reported portion is about 71%, and the income rate for the omitted portion is about 4%). Therefore, it is not consistent with the spirit of equity in tax law.

The appeal is justified.

Therefore, the judgment of the court below is reversed, and the case is remanded to Seoul High Court. It is so decided as per Disposition by the assent of all participating Justices.

Justices Kim Young-ju (Presiding Justice)