1. The plaintiff's claim is dismissed.

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

Details of the disposition

On November 3, 2010, the Plaintiff acquired 540,934 shares of Company B, a non-listed corporation (hereinafter “B”) (hereinafter “instant shares”) through a public auction by Korea Asset Management Corporation.

On October 23, 2013, the Plaintiff transferred the instant shares to B, and reported and paid the capital gains tax accordingly.

The Defendant decided to refund KRW 41,776,940 of the transfer income tax for the year 2013, and notified the Plaintiff of KRW 156,342,780 of the global income tax (including additional tax) on October 6, 2015, on the ground that the Plaintiff’s transfer of the instant shares was made as part of the procedures for stock retirement or capital reduction in B, and that the income from the transfer of the instant shares falls under the deemed dividend income as prescribed in Article 17(1)3 and (2)1 of the Income Tax Act, not capital gains.

(hereinafter “instant disposition.” The Plaintiff appealed to the instant disposition and filed an appeal on December 11, 2015, but the Tax Tribunal rendered a decision to dismiss the Plaintiff’s appeal on February 15, 2016.

[Reasons for Recognition] The Plaintiff did not know at all that B acquired the shares of this case for the purpose of retiring the shares of this case when transferring the shares of this case, and did not know that B was held at the general meeting of shareholders or the board of directors before transferring the shares of this case. The Plaintiff did not know that B was held before transferring the shares of this case.

Therefore, the Plaintiff’s transfer of the instant shares is not a capital transaction but a normal transfer of shares, which is only subject to capital gains tax under Article 94(1)3 of the Income Tax Act, and thus, the instant disposition is unlawful on a different premise.

The attached details of the relevant statutes shall be as specified in the statutes.

Each evidence, evidence of Gap, evidence of No. 4 to 8, and evidence of No. 4 to 6.