Methods of valuation of transfer value where there is no preliminary or final return on capital gains;

If there is no preliminary return on gains from the transfer of assets and a final return on tax base, the transfer value to calculate the transfer income amount is reasonable as the current base value, and even if the actual transaction value is below the current base value, it cannot be deemed as the case where the actual transaction value is obvious on the basis of the circumstances easily known.

Articles 23, 95, and 100 of the Income Tax Act, Article 170 of the Enforcement Decree of the Income Tax Act

Plaintiff

The litigation performers of the Daegu director of the tax office shall have jurisdiction over the litigation performers and their background officers.

Daegu High Court Decision 78Gu69 delivered on October 2, 1979

The original judgment is reversed, and the case is remanded to the Daegu High Court.

The grounds of appeal by the defendant litigant are examined.

According to the reasoning of the judgment of the court below, since the land category of 61 square meters on the above 61-day public register was transferred to the plaintiff at the time of Apr. 10, 1971, the market price increase due to urban planning, and the land price of this case was actually used as a road since the designation of a prearranged area as a fire-fighting road under urban planning by the North Korean Public Notice No. 190 on May 11, 1974, and the market price of this case was actually increased as well as the neighboring land price of this case, even if the plaintiff want to sell this case as the price of this case, it is considerably difficult for the plaintiff to view that the above 1 and 2 were a way to construct a house on the above 1-day public register and to view the transfer price of this case as a way of using the above 0-year market price at the time of the above preliminary return and to assess the transfer price at the above 1-year market price at the time of sale and purchase by the plaintiff and the non-party 20-party 180-6.

However, according to Article 23 (5) of the Income Tax Act (amended before December 22, 1976), the transfer value at the time of imposition of transfer income tax shall be based on the actual transaction value, and if the actual transaction value is unclear, the transfer value shall be based on the current base value at the time of transfer of the assets. According to Article 170 (3) of the Enforcement Decree of the Income Tax Act, the transfer value shall be calculated based on the current base value at the time of transfer evaluated as the current base value at the time of transfer of the assets and the acquisition value assessed as the current base value at the time of the acquisition. According to Article 170 (3) of the same Act, if a resident who received a final return on transfer income pursuant to the above paragraph (3) of the same Article did not have any error in calculating the actual transaction value, the transfer value shall be determined based on the current base value at the time of transfer and the current base value at the time of transfer, which is no more than the above actual transaction value, and if so, it shall be determined that the current base value at the same time is no clear or definite.

Therefore, the original judgment is reversed, and the case is remanded to the Daegu High Court which is the original judgment. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Kim Yong-chul (Presiding Justice)