The meaning of "profit-making business or revenue" under Article 1 (1) of the former Corporate Tax Act (Law No. 2566, Dec. 21, 1974) (Act No. 2686, Mar. 3, 1973).

"Profit-making business or revenue" under Article 1 (1) of the former Corporate Tax Act (Act No. 2566, Dec. 21, 1974) shall be either profit-making or profit-making business or profit-making business.

Article 1(1) of the former Corporate Tax Act (Act No. 2566, Mar. 3, 1973; Act No. 2686, Dec. 21, 1974); Article 2(1) of the former Enforcement Decree of the Corporate Tax Act (Presidential Decree No. 6642, Apr. 24, 1973; Presidential Decree No. 7464, Dec. 31, 1974);

Attorney Park Young-soo, Counsel for the defendant-appellee

Head of Dong Tax Office

Seoul High Court Decision 77Gu460 delivered on April 23, 1980

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal by the defendant litigant are examined.

With respect to Section 1:

According to Article 1 of the former Business Tax Act (Act No. 2478, Dec. 21, 1974); Article 1 of the former Business Tax Act (Presidential Decree No. 6660, May 3, 1973; Presidential Decree No. 7475, Dec. 31, 1974) and Article 1 of the former Business Tax Act (amended by Presidential Decree No. 7475, Dec. 31, 1974), the term "business subject to business tax" is limited to the business that continues to engage in the same kind of activity for profit-making purposes, i.e., for profit-making purposes. In full view of the evidence of the court below, the court below determined that the plaintiff corporation did not err in the misapprehension of the legal principles as to the establishment permission and the distribution of materials necessary for the improvement and development of agricultural technology among the members and the distribution and management of materials necessary for the development of agricultural technology, and that the plaintiff corporation cannot be deemed to participate in the establishment permission and distribution of agricultural products and subsidies for non-profit purposes.

The issue is groundless.

With respect to the second ground:

According to Article 1(1) of the former Corporate Tax Act (amended by Act No. 2566, Mar. 3, 1973; Act No. 2686, Dec. 21, 1974); Article 2(1) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 6642, Apr. 24, 1973; Presidential Decree No. 7464, Dec. 31, 1974); the term "income subject to corporate tax" provides that "income subject to corporate tax" shall be limited to income arising from four-for-profit businesses or revenues that a non-profit domestic corporation provided under Article 1 of the same Act, and the above profit-making businesses or revenues shall be operated for profit-making purposes or for profit-making purposes. Thus, the court below's decision that the income accrued from each of the above businesses, which the plaintiff corporation was a non-profit domestic corporation and pointing out its main issues, shall not be subject to corporate tax.

Even though the plaintiff corporation has paid education subsidies and production incentives to its members for the education of farmers and the encouragement of production, it cannot be concluded that the business operated by the plaintiff corporation is profit-making profit-making business.

The issue is groundless.

Therefore, the defendant's appeal is without merit, and the appeal is dismissed, and the costs of the appeal are assessed against the losing defendant. It is so decided as per Disposition by the assent of all participating judges.

Justices Kim Yong-chul (Presiding Justice)