Examples of calculating gains on transfer in accordance with statutory standard prices

In calculating capital gains, since there is no preliminary return on the gains from transfer of assets or final return of tax base is not known, the gains from transfer should be calculated based on the current base value.

Article 23 of the Income Tax Act

Supreme Court Decision 77Nu222 Delivered on December 27, 1977

[Judgment of the court below]

Head of Southern District Tax Office

Seoul High Court Decision 79Gu332 delivered on October 31, 1979

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

The grounds of appeal are examined.

Article 23 (5) of the Income Tax Act (amended by Presidential Decree No. 2933) merely provides that the transfer value shall be determined based on the current base value at the time of transfer of the assets, if such actual transaction value is unclear, and Article 95 of the same Act provides that the resident who transfers the assets as provided in subparagraphs of Article 23 (1) shall report the transfer margin calculated under paragraph (2) of the same Article to the Government by the end of the month following the transfer date under the conditions as prescribed by the Presidential Decree, in addition to the provision that the transfer margin calculated under paragraph (2) of the same Article shall be determined based on the above current base value at the time of acquisition of the assets, and that the resident who has the actual transaction value at the time of transfer should not be determined based on the current base value at the time of tax base at the time of tax return at the time of tax base at the time of tax return at the time of tax return at the time of tax return at the time of tax return at the time of tax return at the time of tax return at the time of tax return at the same time of tax base.

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

Justices Ahn Byung-soo (Presiding Justice)