Daejeon District Court-2015-Gu Partnership-102179 ( December 24, 2015)

key sales allowances shall be the necessary expenses to be deducted from capital gains.

OT shall be deemed to fall under "other incidental expenses" under Article 89 (1) 1 of the former Enforcement Decree of the Income Tax Act, and RT shall be deemed to fall under "refering expenses" under Article 163 (5) 1 (c) of the Enforcement Decree of the Income Tax Act. Therefore, such sales allowances shall be deducted from the calculation of profits from land trade as necessary expenses of transferred assets, but the disposition of this case imposed after excluding them from necessary expenses shall be unlawful within

Article 81-2 of Framework Act on National Taxes

2016Nu10129 global income and revocation of disposition

Economic Zone

Head of Busan District Tax Office

Daejeon District Court 2015Guhap102179 ( December 24, 2015)

September 22, 2016

October 20, 2016

1.The judgment of the first instance shall be modified as follows:

A. The Defendant’s global income tax (including additional tax) for the year 2008 for the Plaintiff on July 12, 2013

Part exceeding 668,882,422 of the disposition of imposition of KRW 1,759,106,200 and 209.

Excess of KRW 1,052,468,064 in the disposition of imposition of global income tax (including additional tax) 1,936,665,426

Each such part shall be revoked.

B. The plaintiff's remaining claims are dismissed.

2. One-third of the total litigation cost shall be borne by the Plaintiff, and the remainder by the Defendant, respectively.

1. Purport of claim

Defendant’s global income tax (including additional tax) for the year 2008 on July 12, 2013 against the Plaintiff on July 12, 2013

Of the disposition of imposition of KRW 1,759,106,2001, the part exceeding KRW 239,016,550, and the part exceeding KRW 361,414,916, among the disposition of imposition of KRW 1,936,65,426, which shall be revoked.

2. Purport of appeal

The judgment of the first instance is revoked. The plaintiff's claim is dismissed.

1. Details of the disposition;

A. The plaintiff purchased land as a rice field, dry field, forest field, etc. in the status of an individual entrepreneur, and re-assign them.

It is a real estate sales businessman who carries on the business of the Do.

B. The Plaintiff’s former Income Tax Act (amended by Act No. 9897, Dec. 31, 2009; hereinafter “Gu”).

Pursuant to Article 64 of the Income Tax Act, closing on the global income tax base including land trading profits.

The global income tax base (A) calculated by multiplying the combined income tax rate (8~35%) by the global income tax rate (8-35%) and the global income tax base (8-35%) multiplied by the global income tax rate (8-35%) by the separate transfer income tax rate (50 or 60%), and the total amount (B) calculated by multiplying the marginal profit from land sale by the separate transfer income tax rate (50 or 60%) was reported and paid by the method of reporting and paying the larger amount, respectively, 14,929,054 and 223,323,078 won in the year 208 and 2009 as global income tax, each of the above global income tax returns and payments (hereinafter referred to as the "in the case of global income tax return"), the Plaintiff considered the purchase and sale of real estate as the "land purchaser" and the "sale price of the land as necessary expenses for the purchase and sale of the land under the name of the purchaser (hereinafter referred to as the "transfer price of the land").

C. From August 2010 to October 15, 2010, the Defendant issued an integrated tax investigation into the Plaintiff and the Plaintiff’s representative aaa development, a stock company Xx development, etc. (hereinafter “previous tax investigation”); and on December 1, 2010, the Defendant issued an increase and notice of global income tax and additional tax 75,079,627 won for global income tax and additional tax 10,227,461 won for global income tax and additional tax 10,27,461 won for the year 209 (hereinafter “first increase and decrease disposition”).

D. After that, on February 1, 2012, the Defendant: (a) increased and notified the global income tax and penalty tax of KRW 15,142,959 (including the total amount of tax determined including the additional tax), and global income tax and penalty tax of KRW 23,489,150 (including the total amount of tax determined including the additional tax, KRW 361,414,916) for the year 2008, respectively (hereinafter referred to as “the second revised disposition”).

E. Around June 15, 2012, the audit officer of the National Tax Service conducted a comprehensive audit of 00 regional tax offices (hereinafter “the audit officer of this case”). Around June 15, 2012, a 00 regional tax office investigating and investigating the Plaintiff from August 10, 201 to October 8, 2010, a 00 regional tax office issued a written request to the Plaintiff for an investigation of real estate speculation. Since the Plaintiff is a real estate sales businessman and the non-business land was transferred to the real estate sales businessman, it is deemed that the comprehensive income tax should be corrected by applying the special provision on the calculation of the tax amount for the real estate sales businessman under Article 64 of the Income Tax Act. Accordingly, if there is a justifiable reason for not applying the special provision on the calculation of the tax amount for the real estate sales businessman, the 2007-2011 regional tax office did not issue a written request to the Plaintiff.

F. On January 10, 2013, the Defendant reported the instant global income tax to the Plaintiff on January 10, 2013 comprised of welfare expenses, etc. (welfare expenses, travel expenses, insurance premiums, advertising expenses, transportation expenses, vehicle maintenance expenses, payment fees (sales allowances), sales fees, and other items, excluding sales allowances, hereinafter referred to as 'welfare expenses', and 'welfare expenses and sales allowances' in total) not listed in the “Calculation of Capital Gains” under Article 97 of the former Income Tax Act. On January 10, 2013, the Defendant issued a prior notice of taxation that the amount of global income tax for 2008 and global income tax for 2,546,069,264 won will be added (hereinafter referred to as 'pre-announcement notice of taxation in this case').

G. On February 8, 2013, the Plaintiff filed a request for pre-assessment review with the Commissioner of the National Tax Service, and the Commissioner of the National Tax Service.

On May 15, 2013, the plaintiff decided to adopt part of the plaintiff's claim for review of legality of taxation on the ground that "the part of the land transferred by the plaintiff in 2009, which does not fall under non-use land, should be excluded from those of the real estate sales businessman."

H. On July 12, 2013, the Defendant issued a notice of increase in global income tax and additional tax for 2008 (total determined tax amount including additional tax), global income tax and additional tax for 1,520,089,657 (total determined tax amount for 1,759,106,207), global income tax and additional tax for 2009 (total determined tax amount for 1,630,016,807 (total determined tax amount for 1,91,431,723) for 209, on the ground that the Plaintiff appropriated excessive necessary expenses in the course of calculating global income tax for 2008 and 2009 (hereinafter referred to as “third revised disposition”).

I. Accordingly, the Plaintiff filed a request for a trial with the Tax Tribunal on August 28, 2013 regarding the third increase disposition. Meanwhile, the Defendant denied necessary expenses for the Plaintiff’s real estate sales business in the process of the third increase disposition on February 10, 2015, and again issued a decision to dismiss a request for a trial as to the remainder of the tax base for global income tax for the tax year 2009 after deducting KRW 151,232,938 from the global income tax base for global income tax for the tax year 209 (hereinafter “the first reduction disposition”). The Tax Tribunal issued a notice of reduction of KRW 52,931,212 from the global income tax base for the tax amount for global income tax for the tax year 209 (hereinafter “the first reduction and correction disposition”), taking into account the third reduction and correction disposition on February 13, 2015.

(j) On the other hand, the Defendant’s global income tax, the principal tax at the time of the first reduction and correction disposition during the first instance trial.

full reduction of penalty tax and reduction of penalty tax shall be accepted by the Plaintiff’s assertion that the tax shall not be reduced, and shall accrue in 2009.

With respect to income tax and additional tax, the amount of 1,835,085 won of the relevant additional tax was reduced and notified (hereinafter referred to as "the second reduction").

The amount correction disposition is called the amount correction disposition, and the third adjustment disposition and the first and second reduction correction disposition are finally made.

The total imposition of global income tax and additional tax 1,759,106,207 won for the year 2008, and the imposition of global income tax and additional tax 1,936,665,426 won for the year 2009.

Evidence Nos. 1 through 9, 11, Eul evidence Nos. 1 through 7, 9 (if any, a temporary parcel number);

Each entry, including section, hereinafter the same shall apply) and the purport of the whole

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

The instant disposition is partly unlawful in the following respect, and its part should be revoked.

1) Of the instant disposition, the amount of tax notified additionally in the course of the third disposition of increase or decrease is the basic national tax of the Gu.

In violation of Article 81-4(2) of the Act, it is illegal as a deadline for double tax investigation (i.e., assertion).

2) Even if there was no duplicate tax investigation, the amount paid shall be accompanied by the Plaintiff’s purchase of land.

Enforcement Decree of the former Income Tax Act (amended by Presidential Decree No. 21934, Dec. 31, 2009)

Articles 122(2)1 and 163 of the former Enforcement Decree of the Income Tax Act (hereinafter referred to as "former Enforcement Decree of the Income Tax Act").

Paragraph 1, Paragraph 1, Article 89 Paragraph 1, Paragraph 1, Article 89, and Paragraph 5, Paragraph 5, Article 163 of the former Enforcement Decree of the Income Tax Act

It falls under subparagraph 1 (c) of this paragraph and shall be deducted from the calculation of gains from land trading as necessary expenses for transferred assets.

The disposition of this case imposed after excluding it from necessary expenses shall be within the scope of the disposition of this case.

Illegal (B) argument.

(b) Related statutes;

Attachment 'Related Acts and subordinate statutes' shall be as shown.

(c) Fact of recognition;

1) The payment of sales allowances and exemption from necessary expenses, etc.

A) The Plaintiff purchased a parcel outside 12,417 square meters prior to 00, and transferred part of the parcel to 85 persons, including 00,00, for sale by dividing it, and then paid a total of KRW 1,224,420,245 (i.e., OT 751,24,90,00 + RT 473,175,345 won) to 85 persons, including 00,00,000, 707 square meters and 124 square meters prior to 20,472,401,364 (i.e., OT 1,291,29,291,2464). In 200, 209, the Plaintiff purchased and transferred part of the parcel to 124 square meters prior to 20,000, and thereafter paid a total of KRW 1,472,464,364 (i.e., 129, 1361,285)

B) The Defendant excluded total sales allowances of KRW 1,224,420,245 and total sales allowances of KRW 2,472,401,364 from necessary expenses at the time of the notice of taxation of this case (i.e., January 10, 2013). However, upon the review of partial decision on the legality of taxation of May 15, 2013, the Defendant excluded total sales allowances of KRW 1,224,420,245 from necessary expenses and excluded total allowances of KRW 1,50,79,792,321 from total sales allowances of KRW 209 and KRW 2,45 from total sales allowances of KRW 305,205 from total sales allowances of KRW 1,50,260,01 + KRW 260,000 from total sales allowances of KRW 325,205 from total necessary expenses, and excluded from total sales allowances of KRW 205,3205 from total sales allowances of KRW 205,325,2145

C) If the Defendant finally admitted sales allowances of KRW 1,224,420,245, total sales allowances of KRW 1,354,559,333 in 208, 2009, excluding necessary expenses, and deducts the amount from each income amount, the global income tax (including additional taxes) of KRW 668,82,422 and global income tax (including additional taxes) of KRW 1,052,468,064 in 208, as stated in the respective total final tax amount stated in the separate sheet, shall be calculated respectively.

2) Additional details of the tax investigation

A) Defect in the request for explanation by the Audit Officer of the National Tax Service after the instant audit, Article 00 of a regional tax office

BB (00 years old at the time of the request for surrender) that had been in charge of the previous tax investigation while serving in two countries;

In June 2012, the property corporate tax and work) requested the plaintiff's tax agent, etc. to submit a revised return on the additional payment of income tax after excluding welfare expenses from the necessary expenses in June 2012 for the purpose of avoiding heavy disciplinary action due to neglect of investigation. The revised return (No. 15-1, 2) was prepared, but was not submitted to the defendant.

B) Accordingly, BB shall find the Plaintiff three times in June 2012 and request for explanation from the Plaintiff on three occasions.

(Evidence No. 9), written statements (Evidence No. 10)

the Ministry of Strategy and Finance will respond to inquiries, and exclude only welfare expenses from necessary expenses.

After doing so, the revised return to pay the income tax additionally was submitted to the defendant and requested by the defendant.

C) However, the Plaintiff’s rejection did not submit such a revised report to the Defendant, and eventually, the third revised disposition was taken to exclude welfare expenses and sales allowances from necessary expenses according to the direction of the audit officer of the National Tax Service.

Facts that there is no dispute over recognition, Gap evidence 1 through 11, 15, 17, 18, 1 through 2, 1 through 2

7 Evidences, 9, 10, 13, the purport of the whole pleadings

D. Determination

1) Determination as to the assertion

A) Relevant principles, etc.

tax investigation means an inquiry to determine or correct the tax base and amount of national tax;

B. Inspection and investigation of the relevant account books, documents or other articles or ordering submission thereof is the current Framework Act on National Taxes (amended by Act No. 11604, Jan. 1, 2013; hereinafter referred to as the "former Framework Act on National Taxes").

C) The term “Article 81-2(2)(1)” refers to Article 81-2(2)(1), which is a kind of administrative investigation to realize the right to taxation by the State.

Article 81-4 (2) of the former Framework Act on National Taxes provides that "In order to minimize the limit of basic rights of taxpayers based on the principle of excessive prohibition under the Constitution (Article 37 (2) of the Constitution) and the principle of due process (Article 13 (1) of the Constitution), a re-investigation shall not be made for the same tax item and for the same taxable period (Article 81-4 (2))."

However, while the former Framework Act on National Taxes establishes the principle of prohibition of duplicate investigation, there is clear evidence to acknowledge the suspicion of tax evasion under Article 81-4 (2) (Article 81 (1)), and the transaction stand.

In cases where it is necessary to conduct an investigation into a room (paragraph (2) or where errors relating to two or more business years are found;

(3), pursuant to a decision on necessary disposition following a decision on a request for examination, filing of an objection, or a request for adjudication;

In other cases similar to those under subparagraphs 1 through 4 (Article 4) and prescribed by Presidential Decree (Article 5), a re-examination may be conducted exceptionally. In addition, if the re-examination is conducted, regardless of whether the initial tax assessment was unlawful, if the re-examination is conducted only to correct the errors of the tax assessment regardless of the re-audit (Article 201(5)).

6083 see Supreme Court Decision 6083

B) According to the evidence mentioned above, bB, which was in charge of the previous tax investigation, requested that the Plaintiff’s tax agent, etc. in June 2012 after excluding welfare expenses from the necessary expenses submit a revised report on the additional payment of income tax to the police officer’s agent, etc. for the purpose of avoiding heavy disciplinary action due to neglect of investigation. It can be acknowledged that: (a) the revised report (Evidence A No. 15-2) was prepared; (b) the Plaintiff’s request for explanatory statement, statement, etc. was made three times in June 2012 on the part of the police officer on three occasions in June 2012; and (b) the issue of whether the sales allowances were deducted from the necessary expenses was deducted from the necessary expenses; and (c) the fact that bB requested that the Defendant submit a revised report on the additional payment of income tax to the Defendant.

However, in light of the above legal principles, the following circumstances acknowledged by the above evidence are difficult to be deemed as a tax investigation: (a) to ask questions in order to determine or correct the tax base and the amount of tax, or to inspect, investigate, or order the submission of the pertinent account books, documents, or other articles; and (b) even if the tax investigation is deemed as a tax investigation, it is merely a correction of the error of the initial taxation regardless of the re-audit under BB, and thus, (b) such re-audit is lawful regardless of whether it is unlawful. Accordingly, the Plaintiff’s assertion on a different premise is rejected.

The reason why bBB transferred the name and written statement to the Plaintiff is to notify the Plaintiff of the fact that it is difficult to do so due to negligence in the previous tax investigation, and to request the Plaintiff to submit a revised report. It seems that the purpose of BBB was not to request the Plaintiff to explain or make a statement.

Although the plaintiff, at the request of bb, prepared a revised report excluding welfare expenses from the necessary expenses, the plaintiff did not refuse to submit it and the revised report was not submitted to the defendant ( therefore, it cannot be deemed that the plaintiff did not accept the fact that the plaintiff appropriated welfare expenses excessively in the necessary expenses at the request of bb).

In addition to the above act, there is no evidence to deem that bb made another question to determine or correct the tax base and the amount of tax on the part of the plaintiff, or inspected, investigated or ordered the submission of books, documents or other items.

㉣ 3차 증액경정처분은, 수정신고서가 제출되지 아니하자, 이 사건 감사 지적내용에 따라 소득세법 제64조에 따른 부동산매매업자에 대한 세액계산의 특례 규정을 적용하여 복리후생비 및 판매수당을 필요경비에서 제외하여 종전 과세처분의 오류를 경정한 것이지, bbb의 조사결과를 바탕으로 하여 이루어진 것이 아니었다(질문, 조사를 통해 복리후생비 및 판매수당이 실제 지출되지 않았음을 밝히고 이를 이유로 경정처분을 한 것이 아니었다).

2) Judgment on the argument

In light of the following circumstances acknowledged by the evidence and the purport of the entire pleadings, it is reasonable to view that OT constitutes "other incidental expenses" under Article 89 (1) 1 of the former Enforcement Decree of the Income Tax Act, and RT constitutes "inbound expenses" under Article 163 (5) 1 (c) of the above Enforcement Decree.

such sales allowances, therefore, shall be deducted when calculating the profit from the sale of land as necessary expenses of the transferred asset.

The disposition of this case imposed after excluding it from necessary expenses shall be within the scope of the disposition of this case.

It is illegal.

The term "other items included in the acquisition value of assets under Article 89 (1) 1 of the former Enforcement Decree of the Income Tax Act"

"Incidental costs" means the actual transaction price required for acquisition, which is included in the necessary expenses to be deducted from the transfer value.

(1) A person may be deemed to have been listed as one of the parties (Supreme Court Decision 2012Du12723 Decided December 26, 2012).

[Reference]

Article 163 (5) 1 of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 21301 of Feb. 4, 2009) provides that "the expenses directly incurred to transfer assets under each subparagraph of Article 94 (1) of the Act," but Article 163 (5) 1 (a) (d) of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 21302 of Feb. 4, 2009) clearly provides "the expenses for official evidence, stamp, and referral" as the expenses for transfer. The purpose of the amendment is to "improvement the rationality of the real price system by recognizing the actual expenses incurred in the conversion of the actual taxation of the transfer tax as the necessary expenses." Thus, in light of the purport of the amendment of the Enforcement Decree, if the actual expenses are required for purchase and sale of land and then, it constitutes the actual transaction price required for acquiring the transferred assets, which is the necessary expenses of the transferred assets."

V. Sale allowances are the land with high potential for development after reviewing the possibility of development, etc. of the relevant land.

The cost for purchasing land and explaining the location conditions of the land purchased for potential purchasers and inducing their future development potentials, etc., seems to be the cost that is only to be paid in order to proceed with the purchase and sale in case where a business is conducted repeatedly by purchasing large-scale land and selling it again by dividing it into several parcels, such as the Plaintiff.

㉣ 원고는 판매수당을 지출하면서 판매사원들로부터 사업소득세를 원천징수・납부하여 그 지출사실이 객관적으로 확인된다.

E. Sub-committee

If sales allowances in 2008 KRW 1,224,420,245, total sales allowances in 2009, total amount of KRW 1,354,559,333 is recognized as necessary expenses and calculates reasonable global income tax (including additional tax) by deducting the amount of each income from each income. In 2008, 668,882,422, and 1,052,468,064 for year 209, the part exceeding the above amount is unlawful.

3. Conclusion

If so, the plaintiff's claim is accepted within the above scope of recognition, and the remaining claims are dismissed as there is no reason. Since the judgment of the court of first instance is unfair with different conclusions, it is to accept part of the defendant's appeal and to revise the judgment of the court of first instance as above.

Related Acts and subordinate statutes

▣ 구 국세기본법(2013. 1. 1. 법률 제11604호로 개정되기 전의 것)

Article 65 (Decisions)

(1) Decisions on a request for examination shall be made pursuant to the following subparagraphs:

1. A request for examination is unlawful, or made after the lapse of the period for request prescribed in Article 61;

After then, when necessary correction is not made within the period for correction prescribed in Article 63 (1), a decision to dismiss such request shall be made.

section 23.

2. When the request for examination is deemed groundless, a decision to dismiss such request shall be made;

3. When the request for examination is deemed reasonable, a decision to revoke or correct the disposition against which the request is made, or completion of the request.

shall decide on the necessary disposition.

Article 81-2 (Establishment and Delivery of Taxpayers' Right Charter)

(1) The Commissioner of the National Tax Service shall determine matters prescribed in Articles 81-3 through 81-16 and other matters concerning the protection of rights of taxpayers.

It shall establish and publicly notify the taxpayers' right charter including this paragraph.

(2) Tax officials shall specify the charter of rights of taxpayers under paragraph (1) in any of the following cases:

Each taxpayer shall deliver the recorded document to him.

1. Questions in order to determine or correct the tax base of national taxes and the amount of tax, or the relevant account books, documents or other relevant documents;

Where he/she inspects or investigates the articles of the Tax Tribunal or orders the submission thereof (to capture the investigation of a tax offense under the Procedure for the Punishment of Tax Evaders Act);

under this Chapter. (hereinafter referred to as "tax investigation" in this Chapter)

3. Where a business registration certificate is issued.

4. Other cases prescribed by Presidential Decree.

Article 81-4 (Prohibition of Abuse of Right of Tax Investigation)

(1) Any tax official shall conduct a tax investigation within the minimum limit necessary to realize proper and fair taxation.

shall not abuse the investigation authority for any other purpose, etc.

(2) Tax officials shall, except in any of the following cases, substitute for the same tax item and in the same taxable period:

shall not conduct re-audit.

1. Where obvious evidence exists that prove a suspicion of tax evasion;

2. Where it is necessary to investigate a trading partner;

3. Where mistakes relating to two or more business years exist;

4. Necessary dispositions under Article 65 (1) 3 (including cases applied mutatis mutandis in Articles 66 (6) and 81).

Where an investigation is conducted pursuant to a decision;

5. Other cases similar to subparagraphs 1 through 4, which are prescribed by Presidential Decree.

Article 81-5 (Right to Receive Help in Tax Investigation)

- 16 -

Where a taxpayer is subject to a tax investigation, he/she shall have a lawyer, certified public accountant or certified tax accountant participate or present his/her opinion

may be required to make statements.

Article 81-12 (Notice on Result of Tax Investigation)

Upon completion of a tax investigation, a tax official shall notify the taxpayer of the results of such investigation in writing: Provided, That it shall be reported.

The same shall not apply to cases prescribed by Presidential Decree, such as closure.

▣ 구 국세기본법 시행령(2013. 2. 15. 대통령령 제24366호로 개정되기 전의 것)

Article 63-2 (Prohibition of Overlapping Investigation)

In cases prescribed by Presidential Decree under Article 81-4 (2) 5 of the Act, any of the following contests:

e. means e.b.

1. If a person is suspected of disturbing the economic order through speculative investment in real estate, hoarding and hoarding, undertaking transactions without authentic documentation, etc., leading to evasion of taxes;

(2) If an investigation is conducted:

2. Where a reinvestigation for the handling of all kinds of assessment data, or a confirmation investigation for determination of the national tax refund is conducted;

3. Where re-revision is made without conducting on-site investigation for tax disposition pursuant to Articles 81-5 and 81-12 of the Act.

▣ 구 조사사무처리규정(2012. 7. 1. 국세청훈령 제1945호로 개정되기 전의 것)

Article 3 (Definitions)

The definitions of terms used in this Regulation shall be as follows:

1. For tax investigation, the right to inquiry, investigation or questioning and inspection, and the punishment of a tax offense under the Punishment of Tax Evaders Act and the Punishment of Tax Evaders Act;

In accordance with the Procedure Act, an investigating public official shall question a taxpayer or a person deemed to have a transaction with the taxpayer.

and it means the inspection and investigation of books, documents, articles, etc. by the investigation plan, and the general tax

It shall be classified into an investigation without authentic documentation and a tax offense investigation.

2. On-site verification means any of the following:

Any person, etc. who is deemed to have a transaction with a taxpayer or his/her taxpayer in order to handle the business affairs, etc. shown;

1. The term "on-site inspection" means an act of confirming facts by making on-site inspections against B in accordance with the field inspection

(a) The probability of simple facts, without undergoing a tax investigation, among the data suspected of being suspected of being used for the data, disguised or fictitious data, and the data derived from criminal investigations;

affairs that may be handled solely by the person;

(b) On-site business trips for the verification of disguised member shops and the processing of data on suspicion of illegal transactions, such as data on large-amount sales by credit cards;

personal affairs

(c) Fact relevance, such as the fact of transactions with customers or customers of a taxpayer conducted in the course of tax investigation.

Sub-Verification

(d) On-site business trips, verification, or one-time verification for the treatment of tax evasion information, taxation data, etc. for the treatment of civil petitions, etc.;

Duties

(e) Checking the current status of business places or bookkeeping of business operators;

(f) Verification of financial transactions, including accounts, for verifying transactions, etc.;

- 17 -

22. On-site investigation means a taxpayer's office, workplace, factory, address, etc. and directly carries out a business trip; or

tax investigation conducted against the person concerned;

Article 12 (Prohibition and Prevention of Overlapping Investigations)

(1) Where an investigating official conducts a tax investigation, he/she shall Article 81-4 (2) of the Framework Act on National Taxes.

except in exceptional cases where a reinvestigation may be conducted as prescribed in Article 63-2 of the Enforcement Decree of the same Act.

shall not re-audit the same tax item and the same taxable period, and the same fact of duplicate investigation after the commencement of the investigation.

If such confirmation is made, necessary measures, such as withdrawal of investigation and withdrawal of investigation teams, shall be taken immediately: Provided, That Article 3

On-site inspections defined in subparagraph 2 shall not be deemed surveys, and in cases falling under Article 81-4 (2) 2 of the Framework Act on National Taxes.

Only a partial investigation of the details of transactions with the relevant trading partner.

(2) In order to prevent duplicate investigations, the director or director of a regional tax office and a tax office, or the director or director of a tax office and income tax office;

The head of the Gu/Corporate Tax Department, etc. shall electronically enter and manage the investigation history, details of selection of persons subject to investigation, etc.

(3) Where a partial investigation is conducted for a taxpayer who has conducted a partial investigation, the part subject to the partial investigation

The investigation shall be deemed to have been conducted.

(4) Where a taxpayer selected as a person subject to general tax investigation investigates a tax offense, the investigation of the relevant tax item shall be conducted.

A general tax investigation on the target period shall be deemed already conducted.

Article 17 (Method of Investigation)

The method of tax investigation shall be the level of tax credit of the person subject to investigation, the scale of business, type of business, the analysis details of taxation data, the suspected omission

The following methods may be conducted in consideration of information about tax evasion, etc.:

1. Where the whole investigation is conducted, the books kept and kept by the taxpayer and other evidential documents related thereto (electronic system);

(1) When the books and documentary evidence are prepared by the court, they shall include electronic records; hereinafter the same shall apply) investigations and the truth of their books;

In order to verify whether it is a material investigation, examination of production rates, various status surveys, investigation of transaction parties, or on-site investigation of transaction parties;

and on-site verification of financial transactions

2. Where a partial investigation is conducted, subparagraph 1 for specific items, part or part of transactions under suspicion of tax evasion.

Application Mutatis Mutandis of the method of investigation

3. In cases of simple investigations, questions by mail centering on problems revealed as a result of written examinations and preliminary investigations.

Inspection of piracy Materials or on a short-term investigation;

Article 41 (Continuation of Investigations)

(1) In the course of conducting a tax investigation, public officials in charge of tax evasion, etc. shall have the opportunity to order taxpayers to do so.

shall be granted.

(2) A public official who conducts an investigation in the course of a tax investigation shall verify tax requirements, facts, etc.

Where a request for submission, inspection or explanation of articles, ice, articles, etc. is made, a written request for submission of data, such as books and documents (attached Form)

16 Form 16) shall be required and a list of the requirements shall be prepared and kept: Provided, That it shall be kept and preserved by statutes, etc.

Accounting books and related evidence with the obligation to keep books shall be made oral, but the list of requirements shall be prepared and kept.

(3) An investigating public official shall report the investigated matters to an investigating manager every day: Provided, That he/she shall conduct an investigation, such as a business trip and investigation

If it is inevitable due to circumstances, it may be reported according to the instructions of the investigative officer, such as reporting as a shooting day.

- 18 -

(4) An investigating public official shall secure evidentiary materials for taxation and prepare for future appeal, etc. and taxpayers or related persons.

A written confirmation (attached Form 31) or written statement (in the form of answer) (attached Form 32) shall be issued for matters requiring confirmation by a person, etc.

must be subject to such rules.

▣ 구 소득세법(2009. 12. 31. 법률 제9897호로 개정되기 전의 것)

Article 64 (Special Cases in Calculation of Tax Amount for Real Estate Broker)

(1) Article 104 (1) shall be a resident engaged in real estate sales business (hereinafter referred to as "real estate sales broker"), who is global income.

Profit margins on housing or land falling under any of subparagraphs 2-3 through 2-7 and 3 (hereafter referred to as "profit margins on housing or land" in this Article)

The calculated global income tax amount of a person who has marginal profits from trading housing, etc.) shall be calculated by the larger of the amount of tax under each of the following subparagraphs:

(c)

1. Global income tax amount under Article 55 (1); and

2. The total amount of taxes under the following items:

(a) The total amount of tax calculated by applying the tax rates under the provisions of Article 104 to the gains from trading houses, etc.;

(b) The tax base shall be the amount obtained by deducting the total sum of the profit from sale and purchase of houses from the global income tax base

amount of tax calculated by applying the tax rate under Article 55 thereto;

(2) Calculation of gains from sale and purchase of housing and other calculated global income taxes for residents operating real estate sales business under paragraph (1).

Matters necessary for the calculation shall be prescribed by Presidential Decree.

Article 97 (Calculation of Necessary Expenses in Transfer Income)

(1) Necessary expenses to be deducted from the transfer value in calculating gains on transfer of a resident shall be as follows:

section 3.

1. Acquisition value:

(a) Actual transaction price required for the acquisition of assets under subparagraphs of Article 94 (1): Provided, That the main sentence other than subparagraphs of Article 96 (2) ;

such assets, the standard market price at the time of acquisition of such assets.

(b) In case of the text of item (a), if it is impossible to confirm the actual transaction price at the time of acquisition, determined by the

transaction example, appraisal value or conversion value

2. Capital expenses, etc. prescribed by Presidential Decree;

4. Transfer expenses, etc. prescribed by Presidential Decree.

(2) The depreciation costs of the asset during the retention period of the transferred asset, which are real estate rental income or business for each year.

If there is an amount included or to be included in the necessary expenses in the calculation of the income amount, that amount under paragraph (1).

The acquisition value shall be the deducted amount.

(3) The calculation of necessary expenses for capital gains under paragraphs (1) and (2) shall be as follows:

1. Where acquisition value is based on the actual transaction value, necessary expenses shall be the following amount (where it falls under paragraph (2), referring to necessary expenses):

The amount under the same paragraph shall be the amount calculated by adding the amount under paragraph (1) 2 and 4 to the amount under the same paragraph.

(a) In cases falling under the main sentence of paragraph (1) 1 (a), the relevant actual transaction price;

(b) The sum of the actual transaction values as at the time of acquisition under the conversion price under paragraph (1) 1 (b) and Article 114 (7);

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the date of acquisition under Article 8 of the Addenda of the Act No. 4803, the Income Tax Act (Act No. 4803)

In this Article, the acquisition value of assets (including assets inherited or donated) acquired before the date of fictitious acquisition shall be determined;

The actual transaction price at the time of acquisition and the price thereof by the producer price before the date of fictitious acquisition; and

If the sum of the amounts calculated by multiplying the winning rate is based on the aggregate value, the equivalent value;

(c) Where it is based on the main sentence of paragraph (7), the relevant actual transaction price;

2. The proviso to paragraph (1) 1 (a), and subparagraph 1 (b) (where subparagraph 1 (b) applies), necessary expenses in cases other than those under subparagraph 1.

Article 114(7) (excluding cases to which subparagraph 1(c) applies), paragraph (7) (excluding cases to which subparagraph 1(c) applies), or Article 114(7)

(3) An amount calculated by adding the amount prescribed by Presidential Decree to the amount of each asset.

(4) A resident's spouse (including where a marriage relationship becomes extinct at the time of transfer) within five years retroactively from the date of transfer.

(c) Assets donated by a lineal ascendant or descendant under Article 94 (1) 1; and

In calculating gains on transfer of assets as prescribed by the Presidential Decree, the necessary expenses to be deducted from the transfer value under paragraph (3).

In accordance with the provisions of paragraph (1) 1 at the time of acquisition by their spouse or lineal ascendants or descendants, respectively, and the acquisition value shall be any of the following:

(b) An amount. In such cases, the amount equivalent to the gift tax paid or payable on the assets donated by the resident;

Notwithstanding the provisions of paragraph (3), necessary expenses shall be included in the necessary expenses.

(5) Matters necessary for calculation of necessary expenses, such as the scope of actual transaction price required for acquisition, gift tax equivalent.

The Presidential Decree shall be prescribed.

(6) Training under paragraph (4) shall be determined by the period of ownership on the register.

(7) In applying the provisions of the main sentence of paragraph (1) 1 (a), a person who is referred to in Article 94 (1) 1 and 2.

A resident who transfers a mountain shall confirm the actual transaction price at the time of acquisition of the relevant assets by such methods as determined by the Presidential Decree.

Where there is a fact, it shall be considered as the actual transaction price at the time of acquisition by the resident: Provided, That any of the following subparagraphs shall be

In any case, this shall not apply.

1. Where the transfer value of the preceding owner's relevant assets is corrected or corrected pursuant to Article 114;

2. Where the transfer income tax on the relevant assets of the former owner is not imposed, causing a higher price than the actual transaction price;

such transaction. If it is confirmed that the transaction was made

▣ 소득세법

Article 170 (Question and Investigation)

A public official engaged in affairs concerning income tax shall, if necessary for performing his/her duties, fall under any of the following subparagraphs:

A person who falls under any of the following subparagraphs shall be asked, investigate the relevant account books, documents or other items, or order him/her to submit them.

the corporation.

1. A taxpayer or a person deemed to have a tax liability;

2. A withholding agent;

3. A tax association;

4. Persons obligated to submit a statement of payment;

5. A withholding agent pursuant to Articles 156 and 156-3 through 156-6;

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6. A tax manager under Article 82 of the Framework Act on National Taxes;

7. Persons deemed to have transactions with persons prescribed in subparagraph 1;

8. Trade associations organized by persons liable to pay taxes and corresponding organizations.

9. Any person who issues donation receipts.

▣ 구 소득세법 시행령(2009. 12. 31. 대통령령 제21934호로 개정되기 전의 것)

Article 89 (Acquisition Value of Assets, etc.)

(1) The acquisition value of assets under Article 39 (2) of the Act shall be based on the following amounts:

1. For assets purchased from a third person, the amount calculated by adding the acquisition tax, the registration tax and other incidental expenses to the purchase price;

2. Raw material cost, labor cost, freight, loading and unloading cost, assets acquired through the manufacture, production, construction, etc. of the person himself/herself;

Aggregate of insurance premiums, fees, public charges (including acquisition tax and registration tax), installation expenses, and other incidental expenses;

3. For assets under subparagraphs 1 and 2, the acquisition value of which is unclear, and assets, other than those under subparagraphs 1 and 2:

The amount of acquisition tax, registration tax and other incidental expenses at the market price as determined by Ordinance of the Ministry of Strategy and Finance at the time of acquisition

Article 122 (Special Cases in Calculation of Tax Amount for Real Estate Broker)

(2) Profit margins on housing, etc. under Article 64 (1) of the Act shall be as follows from the sales price of the relevant housing or land:

shall be the amount less than the amount.

1. Necessary expenses of the transferred property calculated pursuant to the provisions of Article 163 (1) through (5);

2. Basic deduction amount of transfer income under the provisions of Article 103 of the Act.

(4) Matters necessary for calculating the duty amount under Article 64 of the Act shall be prescribed by Ordinance of the Ministry of Strategy and Finance.

Article 163 (Necessary Expenses for Transferred Assets)

(1) "The actual transaction price required for acquisition" in the main sentence of Article 97 (1) 1 (a) of the Act means the following amounts:

total means the sum.

1. Values correspond to the cost for acquisition computed by applying mutatis mutandisArticle 89 (1) (Article 89 (2) 1);

(including the discounted debt estimated by the present value discount fund, but excluding the amount exceeding the market price under wrongful calculation)

2. Costs of litigation directly required for securing the ownership, etc. of the assets for which a lawsuit on acquisition is filed;

Exclusion of sea expenses, etc., which are included in necessary expenses in calculating each income amount of the year such payment was made.

amount equivalent to the amount

3. In applying subparagraph 1, the amount corresponding to the cost for acquisition under the method agreed by the parties concerned;

Where the transaction price is determined in addition to the transaction price, the amount equivalent to the relevant interest shall be included in the cost for acquisition.

An amount equivalent to the interest additionally accrued due to the delay in the payment of the transaction price shall not be included in the cost for acquisition.

(2) The cost for acquisition by the discounted debt estimated by present value under Article 89 (2) 1 under paragraph (1) 1, under paragraph (1) 1.

In the case of the transfer, the amount of the present value estimated by present value during the retention period of the transferred asset for each year.

The amount included or to be included in the necessary expenses when calculating the leased income or business income, if any, shall be deemed 1.

The amount of paragraph (1) shall be deducted.

(3) The term "capital expenditure, etc. prescribed by Presidential Decree" in Article 97 (1) 2 of the Act means the following amounts:

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- means any of the following:

1. Capital expenses computed by applying mutatis mutandisArticle 67 (2);

2. The costs of lawsuit directly required to secure the ownership of the transferred asset, if any dispute arises after the transfer is acquired;

shall be included in necessary expenses in calculating each income amount of the year such as reconciliation costs, etc. paid.

Outward Amount

3. Expenses paid for the alteration, improvement or convenience of the use of transferred assets;

3-2. Development charges (person obligated to pay development charges and a transferor) under the Restitution of Development Gains Act;

In other cases, it refers to the amount equivalent to the development charges to be actually distributed to the transferor.

3-3. Rebuilding charges (payment and transfer of rebuilding charges) pursuant to the Restitution of Excess Rebuilding Gains Act;

Where persons are different, it refers to the amount equivalent to the rebuilding charges to be actually distributed to the transferor)

4. Other expenses determined by Ordinance of the Ministry of Strategy and Finance, which are equivalent to subparagraphs 1 through 3, 3-2 and 3-3.

(5) The term "those prescribed by Presidential Decree" in Article 97 (1) 4 of the Act means those falling under any of the following subparagraphs:

means.

1. Expenses under the following items, which are directly paid for transfer of assets under the subparagraphs of Article 94 (1) of the Act:

(a) Securities transaction tax paid pursuant to the Securities Transaction Tax Act;

(b) Expenses for preparing a return of tax base of capital gains tax and contract preparation;

(c) Notarial fees, stamp charges, and brokerage;

(d) Expenses prescribed by Ordinance of the Ministry of Strategy and Finance, similar to those under items (a) through (c).

2. National housing bonds and other housing bonds purchased pursuant to Acts and subordinate statutes, etc. in acquiring assets under Article 94 (1) 1 of the Act;

Loss from sale arising from the transfer of land development bonds before maturity. In such cases, the financial deadline prescribed by Ordinance of the Ministry of Strategy and Finance.

transfer to any person other than a financial institution in this subparagraph (hereinafter referred to as "financial institution") on the same day.

In case of the sale loss, it shall be limited to the loss from sale.