1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

1. Details of the disposition;

A. On September 15, 1988, the Plaintiff acquired and owned 1/2 shares of 529,500 square meters of forest land in Hongcheon-gun, Hongcheon-gun (hereinafter “instant land”) and transferred the instant land to the National Forestry Cooperative Federation on April 18, 2013.

B. The instant land obtained authorization on a forest management plan based on the Forest Resources Creation and Management Act from 2001 to 2010.

C. The Plaintiff filed an application for special deduction for long-term holding upon filing a return of capital gains tax base. On July 1, 2014, the Defendant issued a notice of correction and notification of KRW 43,681,890 to the Plaintiff on the ground that the instant land was excluded from special deduction for long-term holding as non-business land (hereinafter “instant disposition”).

[Reasons for Recognition] Gap's evidence Nos. 7, 9, Eul's evidence Nos. 1, 3, 4, 7, and 8, and the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The Plaintiff’s instant disposition is unlawful for the following reasons.

1) The instant land should be deemed as having direct relations with the instant project when the Plaintiff was conducting the project with the approval of the forest management plan or taking into account the actual use of the land. Thus, the instant land constitutes the land for business. 2) Even if the instant land is non-business land, regarding forest trees planted on the instant land, it should be deemed as business income separate from the instant land.

(b) Entry in the attached Form of relevant Acts and subordinate statutes;

C. 1) Whether the instant land constitutes land for business purposes or not should be excluded from the land for non-business purposes. The instant land falls under Article 104-3 (1) 2 (a) through (c) of the former Income Tax Act (amended by Act No. 12169, Jan. 1, 2014; hereinafter the same). As seen earlier, the period from 2001 to 2010, when the instant land obtained approval of a forest management plan, shall be the public interest prescribed in Article 104-3 (1) 2 (a) of the former Income Tax Act.