Seoul Administrative Court 2007Gudan16717 ( October 06, 2008)

early 2007west0191 ( October 26, 2007)

Where the actual transaction price is applicable, the method of calculating the transfer value in case of onerous donation.

In the case of onerous donation where there is no actual transaction price, which is the payment for transaction price or onerous donation, the transfer value of the portion to be deemed a transfer may be based on transaction example, appraisal price, conversion price or standard market price in succession, and such price shall be deemed to have been calculated based on the actual transaction price.

The contents of the decision shall be the same as attached.

1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

The judgment of the first instance shall be revoked. The imposition of capital gains tax of KRW 139,835,860 against the plaintiff on October 9, 2006 by the defendant shall be revoked.

1. Quotation of judgment of the first instance;

The court's reasoning concerning this case is as stated in Article 8 (2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act, except for the following changes among the judgment of the court of first instance. Thus, the court's reasoning is as stated in Article 8 (2) of the Administrative Litigation Act and Article 420 of the same Act.

o 4 8 to 5 Hair 8 Hair Hair 8 to 5 Hair 114(5) of the Income Tax Act shall be deemed to have been calculated as follows:

Article 114 (5) of the former Income Tax Act and Article 176-2 (1) and (3) of the former Enforcement Decree of the Income Tax Act provide that where there are no books, sales contracts, receipts or other documentary evidence necessary to confirm the actual transaction price at the time of transfer, or where it is impossible to recognize or confirm the actual transaction price due to lack of important parts, the transfer price may be determined or corrected in a consecutive order by making an estimated investigation based on the transaction example, appraisal price, conversion price or standard market price. Article 100 (1) of the former Income Tax Act provides that where the transaction example, appraisal price or appraisal price is applied pursuant to Article 114 (5) of the same Act, the relevant transaction example, appraisal price or appraisal price shall be included in the actual transaction price. However, even where there is no documentary evidence as to the transaction price, even if there is no documentary evidence as to the original transaction price, the transfer price shall be calculated by considering it as the actual transaction price.

2. Conclusion

Therefore, the plaintiff's claim shall be dismissed as it is without merit, and the judgment of the court of first instance shall be just and it shall be dismissed as the plaintiff's appeal. It is so decided as per Disposition.