If a person liable to pay capital gains tax notifies that the person liable to pay capital gains tax should pay the same tax amount as the reported tax amount without any correction on the reported matters because he/she did not pay the tax amount, the legal nature of such notice (=collection disposition)

From January 1, 200, capital gains tax is a tax converted by a tax return method, and is obligated to pay the tax amount with the return determined at the time when the taxpayer files the tax base and amount of tax. Thus, if a taxpayer only files a tax return and fails to pay the tax amount, and notifies the tax payer that he/she should pay the same tax amount as the reported matters without any correction, it is a collection disposition for the collection of the final tax, and cannot be deemed as a tax disposition subject to revocation litigation.

Article 22 of the Framework Act on National Taxes, Article 10-2 of the Enforcement Decree of the Framework Act on National Taxes, Article 105 and Article 114 of the former Income Tax Act (amended by Act No. 6557 of December 31, 201)

[Plaintiff-Appellant] Plaintiff 1 and 1 other (Law Firm Domin, Attorneys Park Jae-young and 1178, Counsel for plaintiff-appellant)

Plaintiff

The superintendent of the tax office

Seoul High Court Decision 2003Nu218 delivered on July 4, 2003

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

According to Article 22 of the Framework Act on National Taxes, Article 10-2 of the Enforcement Decree of the same Act and Articles 105 and 114 of the former Income Tax Act (amended by Act No. 6557 of Dec. 31, 2001), capital gains tax is converted from the portion first transferred after January 1, 200 to the tax payment method, and the taxpayer is obligated to pay the tax amount determined at the time of the filing of the tax base and tax amount, along with the filing of the return. As such, it is merely a collection disposition for the collection of the final tax, and cannot be deemed a taxation subject to revocation lawsuit, where the taxpayer notifies the tax authority that the taxpayer should pay the same amount as the filing of the return without correction as the filing of the tax base and tax amount.

In light of the records, the fact-finding and judgment of the court below are just in accordance with the above legal principles, and there is no error in the misapprehension of legal principles as to the legal nature of a report of transfer of real estate, a preliminary return of transfer income tax or a lawsuit as otherwise alleged in the grounds of appeal, and the court can investigate it ex officio, even if there is no assertion by the parties as a litigation requirement, so the defendant or the National Tax Tribunal alleged that the tax notice of this case was a tax disposition, but it is a tax collection disposition in the process of litigation

Therefore, the appeal is dismissed. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Zwon-won (Presiding Justice)