1. The Defendant’s corporate tax for the business year of December 2, 2015, which reverts to the Plaintiff for the business year of 2013, KRW 9,34,059,880.

1. Details of the disposition;

A. On December 23, 2013, the Plaintiff entered into a patent use agreement with a U.S. corporation B (hereinafter “B”) to pay USD 49 million in return for the infringement and use of U.S. registered patents (hereinafter “instant royalty”).

All patents of B, which are the subject of the instant royalty, are registered or pending in the Republic of Korea as U.S.-registered patents.

B. On December 26, 2013, the Plaintiff paid the pertinent royalty to B, and accordingly, deemed that it was a domestic source income under B pursuant to the Convention between the Republic of Korea and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Encouragement of International Trade and Investment (hereinafter “Korea-U.S. Tax Convention”), the Plaintiff withheld and paid corporate tax 9,334,059,880 (hereinafter “the instant tax withholding amount”) to the Defendant on January 10, 2014.

C. On May 26, 2015, the Plaintiff filed a request for rectification of corporate tax to the effect that the instant royalty is pertaining to a domestic unregistered patent and does not fall under B’s domestic source income. However, the Defendant rejected the Plaintiff’s request for rectification on December 7, 2015.

(hereinafter referred to as "this case's refusal disposition"). (d)

On February 29, 2016, the Plaintiff filed an appeal with the Tax Tribunal on February 29, 2016, but the Tax Tribunal dismissed the Plaintiff’s appeal on June 26, 2018.

【Ground for recognition】 The fact that there has been no dispute, entry of Gap's 1 through 3, the purport of whole pleadings

2. Whether the disposition is lawful;

A. 1) According to the Plaintiff’s Korea-U.S. Tax Convention, the user fee that the U.S. corporation received from a domestic corporation with respect to a domestic unregistered patent shall not be deemed domestic source income. The Defendant does not have the right to impose the tax on the instant withheld tax, and thus, the instant rejection disposition is unlawful. 2) Article 6(3) of the Korea-U.S. Tax Convention provides that the Defendant shall not be