Standard date of settlement of accounts under Article 27 (1) of the former Corporate Tax Act

If the plaintiff corporation is prepared as of February 13, 196 in order to obtain approval from the general meeting of shareholders and received a resolution of approval on the disposal of profits and surplus funds, the settlement date of the settlement of accounts is not the date of preparation of the above disposal of profits and the statement of surplus funds, but the date of approval by the general meeting of shareholders.

(Gu) Article 27 of the Corporate Tax Act

Supreme Court Decision 67Nu118 delivered on November 21, 1967

Plaintiff, Ltd.

Seoul Sungdong Head of the tax office

The Defendant’s disposition of KRW 321,647 against the Plaintiff at any time on July 20, 1966 (additional Tax No. 321,647) is revoked.

Litigation costs shall be borne by the defendant.

The same shall apply to the order.

(1) The defendant imposed the same disposition as the contents of the order (hereinafter in this case's disposition of imposition), and the reasons why such disposition of imposition was taken are that the plaintiff made the disposition of imposition of this case as the non-reported penalty tax on the income for the business year from March 13, 1965 to December 31 of the same year stated on February 14, 1966 in the report of income amount and completed the return of income amount and the payment of corporate tax. The defendant concluded that the date of settlement of income of the plaintiff company was February 13, 1966, different from the report of income amount, and that the report of income amount was received as of March 2, 1966, it is evident that the report of income amount was submitted 15 days after the legal period of return was received as of March 2, 1966, there is no dispute between all parties.

(2) The plaintiff's closing date of the exhibition business year of the plaintiff company is nothing more than February 14, 1966. Thus, when counting from this point, a return on the amount of income received to the defendant as of March 2, 1966 is received within the statutory period. Furthermore, although the defendant's receipt date was sealed as of March 2, 1966, the above return on the amount of income was actually submitted to the defendant's receipt officer on February 28 of the same year, the plaintiff's return on the amount of income was filed on February 28 of the same year, and the plaintiff's return on the amount of income was filed within the statutory period. According to the disposition on the amount of profit and loss attached to the plaintiff's return, it is recognized that the closing date is February 13, 1966, and the return on the amount of income is nothing more than the receipt date as of March 2, 1966.

(3) According to Article 27 (1) of the Corporate Tax Act, since a corporation shall report the amount of income within 15 days from the date of settlement of accounts of each business year, first of all, the fact that the date of settlement of accounts of the plaintiff company's exhibition business year is when the date of settlement of accounts of the plaintiff company's exhibition business year is determined shall be examined. However, according to the statements in subparagraphs 1 through 4 above, the date of preparation of each document's disposal of profits and losses and surplus disposal statement attached to the report of income amount submitted by the plaintiff to the defendant shall be stated on February 13, 1966. However, according to the witness's testimony, if the witness and witness's testimony is consistent with the purport of the whole pleadings, such as Gap evidence No. 6, the plaintiff company shall report the business of the exhibition business year, the date of settlement of accounts and surplus disposal statement attached to the report submitted by the plaintiff to the defendant, and it shall not be deemed that the above statement was made on February 14, 1966.

(4) If so, even though the plaintiff's report on the income amount of the exhibition business year was received to the defendant as of March 2, 1966 as alleged by the defendant, this report shall be received within 15 days from February 14, 1966, counting from February 14, 1966, which is the closing date of the settlement of accounts according to the above recognition (the 15th day is a national holiday, and the 3.2th day of the next day shall be the expiration date of 15 days). Thus, the defendant's disposition of this case, which was made before the absence of the plaintiff's report during the statutory return period, shall not be unlawful.

Therefore, by accepting the plaintiff's claim, the defendant's disposition of this case is revoked, and the costs of lawsuit are assessed against the losing party and so decided as per Disposition.

Judges Kim Young-ju (Presiding Justice) Lee Chang-joon