A. Whether a notice of change in the amount of income under Article 198(1) and (2) of the Enforcement Decree of the Income Tax Act concerning recognized contributions constitutes a tax imposition disposition (negative), and whether the notice period provision is a mandatory provision (negative)

(b) Timing for establishing and determining a taxation claim of the source tax on recognized contributions;

A. The notification of change in income amount under Article 150(4) of the Income Tax Act refers to the notification of change in income amount under Article 198(1) and (2) of the Enforcement Decree of the same Act concerning bonus as stipulated in Article 150(4) of the same Act that automatically establishes a corporation’s withholding obligation by deeming the payment of income amount. However, the notification itself does not have the nature of the disposition of imposition, but it does not mean that the recognition of the disposition is invalidated or a corporation’s withholding obligation is not exempted due to the lapse of the notification period. Thus, the provision of the notification period is

B. According to Article 198(2) of the Enforcement Decree of the Income Tax Act, with respect to any bonus disposed of under the Corporate Tax Act, the pertinent corporation is deemed to have paid the income amount on the date of receiving the notice of change of income amount. Since the tax liability to pay the income tax withheld under each of Articles 21(2) and 22(2) of the Framework Act on National Taxes is established at the time of paying the income amount, and it is finalized without any special procedure at the same time when the said notice of change of income amount is served on the pertinent corporation, the tax

(a)Article 150(4) of the Income Tax Act, Article 198(1) and (2) of the Enforcement Decree of the Income Tax Act, Article 2(b) of the Administrative Litigation Act;

A. Supreme Court Decision 86Nu419 delivered on January 20, 1987 (Gong1987,382). Supreme Court Decision 81Nu6 delivered on December 22, 1981 (Gong1982,222) 85Nu775 delivered on February 24, 1987 (Gong1987,554)

Gwangju Construction Co., Ltd. (Law Firm Daegu General Law Office, Attorneys Park Jong-ho et al., Counsel for the defendant-appellant)

Head of Daegu Tax Office

Daegu High Court Decision 88Gu859 delivered on May 9, 1990

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

1. We examine the ground of appeal No. 1 by the Plaintiff’s attorney.

According to the provisions of Article 198 (1) and (2) of the Enforcement Decree of the Income Tax Act, the bonus provided for in Article 150 (4) of the Income Tax Act is that the chief of the tax office who determines or revises the corporate income amount shall notify the corporation by a notice of change in the amount of income within 15 days from the date of the determination or correction and shall be deemed to have paid the income amount on the date when the corporation receives the notice. The above notice of change in the amount of income refers to the legal fiction of the payment of income amount to automatically establish the corporate withholding obligation by automatically establishing the corporate withholding obligation. However, the above notice does not have the nature of the disposition of imposition, and the provision of the above notification period is nothing more than a decoration provision from the purport of securing the tax claim in a timely manner. The decision of the court below to the same purport is justified and without merit.

2. We examine the second ground for appeal.

With respect to bonuses disposed of under the Corporate Tax Act, the pertinent corporation is deemed to have paid the amount of income on the date of receiving the notice of change in the amount of income. The liability to pay income tax withheld under each of Articles 21(2) and 22(2) of the Framework Act on National Taxes is established at the time of paying the amount of income, and at the same time determined without any special procedure. Thus, the obligation to pay income tax on the above recognized contributions shall be determined at the time of delivery of the notice of change in the amount of income to the pertinent corporation. According to the facts established by the court below, the notice of change in the amount of income for the recognized contributions is delivered to the non-party Y Co., Ltd. after January 31, 1983 when the notice of change in the amount of income was delivered to the non-party YO Co., Ltd., the above recognized contributions are established after the commencement of the reorganization procedure for the above company, and thus they constitute public-interest claims. The judgment below is justifiable in this purport, even if the tax claim in this case was reported as a reorganization claim, it does not have any problem arising from the taxation claim.

All arguments are groundless.

3. Therefore, the appeal is dismissed, and all costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Song Man-man (Presiding Justice)