In case of transaction values with corporations, etc. either of the transfer values and acquisition values under the former Enforcement Decree of the Income Tax Act (amended by the Presidential Decree No. 12767 of Aug. 1, 1989), the method of calculating transfer margin.

Article 170(1) and (4) of the former Enforcement Decree of the Income Tax Act (amended by the Presidential Decree No. 12767 of Aug. 1, 1989), in principle, at the time of enforcement, the transfer value and acquisition value determined shall be based on the standard market price. However, in a transaction with the State, a local government or other corporations where the actual transaction price at the time of transfer or acquisition is confirmed, if the actual transaction price at the time of transfer or acquisition, other than a transaction with a corporation, is confirmed through a report or a due diligence, etc., the transfer margin shall be determined based on the actual transaction price, and the transaction partner with a corporation shall be determined on the basis of the actual transaction

Articles 23 and 45 of the Income Tax Act, Article 170 of the former Enforcement Decree of the Income Tax Act

Supreme Court Decision 87Nu767 delivered on April 11, 1989 (Gong1989,760) 90Nu2635 delivered on June 12, 1990 (Gong1990,1492) 90Nu2642 Delivered on June 12, 1990

Kim Min-sung

Kim head of the tax office

Gwangju High Court Decision 89Gu1529 delivered on June 12, 1990

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

We examine the grounds of appeal.

Article 170 (1) and (4) of the former Enforcement Decree of the Income Tax Act (amended by the Presidential Decree No. 12767 of Aug. 1, 1989) at the time of enforcement, in principle, the transfer value and acquisition value determined shall be based on the standard market price. However, in case where the actual transaction price at the time of transfer or acquisition of transactions with the State, a local government or other corporations is confirmed, if the actual transaction price at the time of transfer or acquisition is confirmed, other than a transaction with a corporation, it shall be determined on the basis of the actual transaction price if the actual transaction price at the time of report or actual inspection, etc., and only if such confirmation is not made, the other transaction party with a corporation shall be determined on the basis of the standard market price (see Supreme Court Decisions 87Nu767, Apr. 11, 198; 90Nu2642, Jun. 12, 199).

In the same purport, the court below is just in holding that the transfer margin should be calculated on the basis of the actual transaction price as well as the acquisition price as the transaction price with the corporation for the land of this case, and there is no error of law such as the theory of lawsuit.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Yoon So-young (Presiding Justice)