Article 4-9 (6) of the former Regulation of Tax Reduction and Exemption Act (Act No. 3096, Mar. 25, 1978) shall apply to the time of appropriation of the technology development reserve fund.

Article 4-9 (6) of the former Regulation of Tax Reduction and Exemption Act newly established pursuant to Act No. 3096 of Mar. 25, 1978 applies from the taxable period portion or business year portion first commenced after Jan. 1, 1978 pursuant to Article 2 of the Addenda thereto. This means that it may be imposed and collected as income or corporate tax only in cases where the technology development reserve fund is appropriated after Jan. 1, 1978 and it is included in the calculation of gross income or gross income. Thus, it is reasonable in light of the rule of law, such as protecting the trust of the taxpayer and securing legal safety and predictability, if the technology development reserve fund has been appropriated before the above date, even if it was included in the calculation of gross income after the above date, the new corporation tax

Article 4-9 (6) of the former Regulation of Tax Reduction and Exemption Act (Act No. 3096, Mar. 25, 1978), Article 2 of the Addenda of the same Act

Supreme Court Decision 81Nu423 Delivered on April 26, 1983

Samyang Co., Ltd.

Head of North Busan District Tax Office

Seoul High Court Decision 81Gu535 delivered on March 3, 1982

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

. The technical development reserve funds under Article 4-9 of the Regulation of Tax Reduction and Exemption Act (not later than the date amended by Act No. 2795, Dec. 22, 1975) may be included in necessary expenses or deductible expenses within a certain amount in the calculation of the income amount for the pertinent business year. As such, the technical development reserve funds included in necessary expenses or deductible expenses shall have been stipulated to be included in the calculation of the total income amount or gross income for the business year immediately following the date two years have elapsed from the date of the end of the pertinent business year, but the remaining amount offset with the technological development reserve funds shall be included in the calculation of the income amount for the pertinent business year under Article 4-9 (6) of the Regulation of Tax Reduction and Exemption Act (not later than the date amended by Act No. 2795, Dec. 12, 197). It is reasonable that the remaining amount set aside in this case or the amount calculated under Article 4-9 (5) of the same Act shall be included in the calculation of the income amount for the first time after 197 years have been newly established and applied.

Therefore, the appeal is dismissed as it is without merit, and the costs of the lawsuit are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Lee Jong-soo (Presiding Justice)