All appeals are dismissed.

Costs of appeal shall be borne by each party.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Judgment on the plaintiffs' grounds of appeal

A. As to the grounds of appeal Nos. 1 through 4, the principle of substantial taxation under Article 14(1) of the former Framework Act on National Taxes (amended by Act No. 11604, Jan. 1, 2013; hereinafter the same) refers to the person to whom the property belongs, not the nominal owner on the ground of type or appearance, if there is a separate person to whom the property belongs, unlike the nominal owner, in relation to income, profit, property, transaction, etc., belongs. Thus, the nominal owner of the property is not the person to whom the property belongs, but the nominal owner is not the person to whom the property belongs, and there is another person who actually controls and manages the property through the control, etc. over the nominal owner, and if the disparity between name and substance arises from the purpose of tax evasion, the income from the property belongs to the person to whom the property

(see, e.g., Supreme Court en banc Decision 2008Du8499, Jan. 19, 2012). This principle applies to the interpretation and application of a tax treaty having the same effect as an Act, unless there are special provisions excluding such interpretation and application (see, e.g., Supreme Court Decisions 2010Du11948, Apr. 26, 2012; 2010Du25466, Oct. 25, 2012). (2) The lower court recognized the following facts by taking into account the adopted evidence.

① G is a partnership-type private equity fund that creates profits through the acquisition and merger of financial institutions or general companies whose asset value was low, acquisition of non-performing loans, purchase of non-performing loans, investment in real estate, etc. after raising funds through private placement, which was first established by O in the mid-190s, and is new when every investment is completed.