Whether a report under Article 3-3(2) of the Enforcement Rule of the former Technology Development Promotion Act or Article 5(2) of the Enforcement Rule of the Technology Development Promotion Act constitutes a requirement to be subject to tax credit for technology and human resources development expenses under the former Tax Reduction and Exemption Act (negative)

Article 17 of the former Regulation on Tax Reduction and Exemption (amended by Act No. 4521 of Dec. 8, 1992) or Article 9 of the former Regulation on Tax Reduction and Exemption (amended by Act No. 4666 of Dec. 31, 1993), Article 14 (1) of the former Enforcement Decree of the Regulation on Tax Reduction and Exemption (amended by Presidential Decree No. 14084 of Dec. 31, 1993), or Article 9 of the former Regulation on Tax Reduction and Exemption (amended by Ordinance No. 15197 of Dec. 31, 1996) of the former Regulation on Tax Reduction and Exemption (amended by Presidential Decree No. 15197 of Dec. 31, 199) to be established by a national with the exclusive department for tax reduction and exemption under Article 9 (2) of the former Regulation on Tax Reduction and Exemption (amended by Ordinance No. 1970 of Apr. 13, 1994). 196

Article 17 of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 4666 of Dec. 31, 1993) (see current Article 10 of the Restriction of Special Taxation Act), Article 9 (see current Article 10 of the Restriction of Special Taxation Act) of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 5195 of Dec. 30, 1996), Article 14 (1) (see current Article 9 (2) of the Enforcement Decree of the Restriction of Special Taxation Act) of the former Enforcement Decree of the Regulation of Tax Reduction and Exemption Act (amended by Presidential Decree No. 14084 of Dec. 31, 1993), Article 9 (2) (see current Article 9 (2) of the Enforcement Decree of the Restriction of Special Taxation Act), Article 9 (1) of the former Enforcement Rule of the Restriction of Tax Reduction and Exemption Act (amended by Presidential Decree No. 15197 of Dec. 31, 196), Article 198 (2) of the former Enforcement Rule of the Restriction of Tax Reduction

Senior Machinery Co., Ltd. (Attorney Lee Jae-soo, Counsel for defendant-appellant)

The Director of Incheon Tax Office

Seoul High Court Decision 99Nu9157 delivered on November 19, 1999

The judgment below is reversed and the case is remanded to Seoul High Court.

Article 17 of the former Regulation on Tax Reduction and Exemption (amended by Act No. 4521 of Dec. 8, 1992 and Article 9 of the former Regulation on Tax Reduction and Exemption (amended by Act No. 4666 of Dec. 31, 1993); Article 14 (1) of the former Enforcement Decree of the Regulation on Tax Reduction and Exemption (amended by Act No. 5195 of Dec. 30, 1996); Article 9 of the former Regulation on Tax Reduction and Exemption (amended by Presidential Decree No. 14084 of Dec. 31, 1993); Article 9 (2) of the former Enforcement Decree of the Regulation on Tax Reduction and Exemption (amended by Presidential Decree No. 15197 of Dec. 31, 1996); Article 9 of the former Regulation on Tax Reduction and Exemption (amended by Ordinance No. 1970 of Apr. 13, 199; Ordinance No. 965 of the Ministry of Science and Technology Development Promotion Act). 1960 of the former Regulation on Tax Reduction and Exemption.

Therefore, the court below's decision that the technology and human resources development expenses paid by the cooling tower Research Institute of this case are not subject to tax credit on the grounds that the Plaintiff did not report the development of the cooling tower technology research institute to the Minister of Science and Technology in each corporate tax taxable year subject to the disposition of this case is erroneous in the misapprehension of legal principles as to technology and human resources development expenses, which led to failure to exhaust all necessary deliberations.

Therefore, the judgment of the court below is reversed, and the case is remanded to the court below. It is so decided as per Disposition by the assent of all participating Justices.

Justices Lee Ji-dam (Presiding Justice)