1. The plaintiff's appeal is dismissed.

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

Purport of claim and appeal

The first instance court.

1. The court's explanation concerning this case is the same as the reasoning of the judgment of the court of first instance, except where the fourth and sixth parts of the judgment of the court of first instance are used as follows. Thus, it is acceptable to accept this as it is in accordance with Article 8 (2) of the Administrative Litigation Act and the main sentence of Article 420 of the Civil Procedure Act.

[Supplementary Use]

C. 1) The former Restriction of Special Taxation Act (amended by Act No. 11614, Jan. 1, 2013; hereinafter “Act”)

(1) Article 69(1) of the Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 24368, Feb. 15, 2013; Presidential Decree No. 24368, Feb. 15, 2013; hereinafter “Enforcement Decree”) provides, “The tax amount equivalent to 100/100 of the capital gains tax shall be reduced or exempted on income accruing from the transfer of land among land cultivated directly by a resident who resides in farmland

Article 66(13) of the Act provides that “Direct cultivation” under Article 69(1) of the Act means that “a resident is engaged in cultivating crops or growing perennial plants on his/her own farmland at all times, or cultivating or growing at least 1/2 of the farming work with his/her own labor.” (2) Abstinence in the principle of no taxation without law is required.

Dried or non-taxable

Summary of Tax Reduction and Exemption

The interpretation of tax laws and regulations shall be interpreted in accordance with the text of the law, unless there are special circumstances, and it shall not be allowed to expand or analogically interpret without reasonable grounds.

In particular, required reduction and exemption

It is also consistent with the principle of equity in taxation to strictly interpret that it is a clear preferential provision among the provisions that can be seen as a clear preferential provision.

(see Supreme Court Decision 2011Du20116, Dec. 13, 2011). Therefore, a capital gains tax need to be reduced or exempted.

The meaning of "direct cultivation" is engaging in the cultivation of crops in the farmland owned by the resident as a matter of law at all times.