Whether the disposition of bonus is legitimate on the grounds that the reversion is unclear

It is reasonable to dispose of bonus to the representative because it is unclear that the source of use of the transfer proceeds without reporting after the transfer of real estate.

Article 67 (Disposition of Income)

[Electricju District Court 2006Nu571 (Law No. 13, 2007)]

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 global income tax of KRW 15,821,950 against the Plaintiff on March 15, 2005 shall be revoked.

The reasoning for this Court’s explanation concerning this case is as stated in the first instance court’s decision, except for adding “No. 5 and No. 6” to “No. 9-1 and No. 2” on the 6th day below the third day of the first instance judgment, and therefore, it is acceptable in accordance with Article 8(2) of the Administrative Litigation Act and the text of Article 420 of the Civil Procedure Act.

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

[Attachmentju District Court 2006Guhap283 ( October 19, 2006)]

1. The plaintiff's claim is dismissed.

2. Litigation costs shall be borne by the plaintiff.

The disposition of imposition of global income tax of KRW 15,821,950 against the Plaintiff on March 15, 2005 shall be revoked.

1. Details of the disposition;

A. The ○○ Product Business Co., Ltd. (hereinafter “○○ Product”) was established on December 20, 198 for the purpose of manufacturing red bricks, and closed on December 31, 1996, and the Plaintiff served as the representative director of the ○ Product Business.

B. On June 5, 2002, 000, ○○ Business transferred all of the lands listed in the annexed real estate list (hereinafter “instant land”) to Kim○○ on June 5, 2002, but did not report and pay corporate tax.

C. The head of ○○ Tax Office calculated “the transfer date, June 5, 2002, the transfer price, 77,517,800 won in the gross income, and the acquisition price, 75,597,500 won in the gross income on September 28, 1990,” in accordance with the data review report dated June 8, 2004, determined and notified KRW 385,230 in the corporate tax of 202 to ○○ Business on July 8, 2004, on the ground that it is unclear that the transfer price belongs to KRW 77,517,800 in the gross income, and notified the Plaintiff of the change in the income amount at that time.

D. On March 15, 2005, the Defendant decided and notified the Plaintiff of KRW 15,821,950 of the global income tax attributed to the year 2002 (hereinafter “instant disposition”).

[Ground of recognition] Facts without dispute, Gap evidence 1 to 4 (including each number, hereinafter the same shall apply), Eul evidence 1, the purport of the whole pleadings

2. The assertion and judgment

A. The plaintiff's assertion

The Plaintiff asserted that the Defendant’s disposition of this case should be revoked on the ground that, on April 21, 1992, the ownership transfer registration was completed on the instant land owned by ○○ Business for the purpose of securing the original soil price, as it was impossible for ○○○○ to pay the original soil as the main registration based on the above provisional registration, on the ground that ○○○○ Business had completed the ownership transfer registration as the principal registration based on the above provisional registration, on the following grounds: (a) on December 31, 1992, the right to claim for ownership transfer registration was closed on December 31, 1996; and (b) on June 5, 2002, on June 5, 2002, the ownership of the instant land was transferred to ○○○○ on the ground that the ownership transfer registration was completed as the principal registration based on the above provisional registration; and (c) the transfer value of the instant land presumed by ○○ Business was used for payment of the original soil price to ○○ Business.

(b) Related statutes;

It is as shown in the attached Form.

C. Determination

As alleged by the Plaintiff, in light of the health class and the evidence revealed by the Plaintiff, as to whether there was a real transaction equivalent to KRW 92 million between ○○○○ and Kim○○, ○○○ Business may recognize the fact that on April 21, 1992, 192, the right to request the registration of ownership transfer of the instant land was registered. However, it is insufficient to recognize the fact that ○○○○○ Business bears the principal soil payment obligation against ○○○○. However, the testimony of ○○○○○ and the witness’s testimony should be more than five years after the closure of ○○○○○○○ Business, in light of the fact that the principal registration of ownership transfer in the name of ○○○○○○ was made on the instant land, and it is difficult to believe that there was no other evidence to acknowledge the said assertion by the Plaintiff, and therefore, there is no illegality in the disposition of this case.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit, and it is so decided as per Disposition.

Relevant statutes

◆법인세법

In filing a report on the tax base of corporate tax on income for each business year pursuant to the provisions of Article 60 or in determining or revising the tax base of corporate tax pursuant to the provisions of Article 66 or 69, the amount included in gross income shall be disposed of as bonus, dividend, other outflow from the company, internal reservation, etc. according to the person to whom it belongs as prescribed by Presidential Decree

◆법인세법 시행령

Except as otherwise provided in the Act and this Decree, profits under Article 15 (1) of the Act shall be those under the provisions of any of the following subparagraphs:

2. The amount of transferred assets (including one’s own stocks);

Except as otherwise provided for in the Act and this Decree, the losses under the provisions of Article 19 (1) of the Act shall be those as provided for in the following subparagraphs:

2. The book value at the time of transfer of transferred assets;

Article 106 (Disposition of Income)

(1) The amount included in the calculation of earnings under the provisions of Article 67 of the Act shall be disposed of under the provisions of the following subparagraphs. The same shall apply to non-profit domestic corporations

1. Where the amount included in the calculation of earnings has clearly leaked out of the company, the dividends, bonuses from the disposition of profits, other income, and other outflow from the company under each of the following items according to the person to whom they accrue: Provided, That where the accrual is unclear, it shall be deemed as accrual to the representative (where the total number of stocks issued by the relevant corporation and the stocks owned by an officer who is not a minority shareholder under the provisions of Article 87 (2) and persons with a special relationship under the provisions of paragraph (4) of the same Article is 30% or more of the total number of stocks issued or total investment amount of the relevant corporation and the officers actually control the operation of the corporation, he shall be deemed the representative, and where a corporation which has been exempted from withholding taxes under the provisions of Article 46 (12) of the Restriction of Special Taxation Act reports that there is a separate representative among the officers who are stockholders, the reported person shall be the representative

(a) Where the person of accrual is a stockholder (not including stockholders who are officers or employees), the dividends of the person of accrual;

(b) If the person to whom it belongs is an officer or employee, the bonus to the person to whom it reverts;

(c) Where the person to whom the income accrues is a corporation or an individual operating the business, other outflow from the company: Provided, That it shall be limited to where the distributed profit constitutes the income for each business year of a domestic corporation or a domestic business place of a foreign corporation under the provisions of Article 94 of the Act or the business income of a resident or a non-resident under

(d) If the person to whom it belongs is other than those as referred to in items (a) through (c), other incomes for the person to whom it reverts