The meaning of real estate registration of a corporation in a large city subject to heavy registration tax;

Even if a corporation in a large city, the business purpose of which is to build and register commercial buildings and apartment houses, etc. for the purpose of selling them in lots, it is not the acquisition of real estate of a fixed property nature directly used by the corporation for its business. This does not change its interpretation depending on the establishment, establishment, and transfer of a corporation, etc., the authorization of real estate registration following the establishment of a corporation, etc.

Article 138 (1) 3 of the Local Tax Act

Supreme Court Decision 79Nu73 delivered on June 26, 1979, 79Nu75 delivered on August 31, 1979, and 80Nu98 Delivered on July 28, 1981

Attorney Kim Young-young, Counsel for the plaintiff-appellant

Attorney Kim Hong-chul, Counsel for the defendant-appellant

Seoul High Court Decision 81Gu456 delivered on December 15, 1981

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

We examine the grounds of appeal.

Article 138 (1) 3 of the Local Tax Act (Act No. 3160, Apr. 16, 1979) declares heavy taxation; "Real estate registration as a result of the establishment of a corporation and the establishment of its branch or sub-branch in a large city and the relocation of its branch or sub-branch into a large city and its establishment, establishment, or relocation shall be five times the tax rates provided for in Article 131 of the same Act when real estate registration is made after the establishment, establishment, or relocation." Meanwhile, the Enforcement Decree of the Local Tax Act (Presidential Decree No. 9439, Apr. 27, 1979) enacted by delegation of Article 138 (3) of the same Act provides that "Real estate registration taxes are not imposed on real estate for the purpose of the establishment of a corporation, establishment of its branch or sub-branch in a large city, establishment of its main office, establishment of its branch or sub-branch in a corporation, establishment of real estate for the purpose of sale and purchase of real estate, establishment of real estate for the corporation or relocation."

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating judges.

Justices Lee Il-young (Presiding Justice)