Whether the reason why the interpretation of the statutes differs from the time of the initial report, determination, or revision is included in the grounds for a subsequent request for correction as prescribed by Article 45-2(2)5 of the Framework Act on National Taxes (negative)

Since a subsequent request for correction is made on the grounds of post-declaration that had not existed at the time of the initial return or taxation, the grounds such as whether a transaction or act, which is the basis of the calculation of the tax base and the amount of tax, exists after the statutory due date of return of the national tax, or the legal effect thereof vary may be included in the post-explosion reasons under Article 45-2(2)5 of the Framework Act on National Taxes and Article 25-2 subparag. 4 of the Enforcement Decree of the Framework Act on National Taxes, but the grounds that the interpretation of the statutes differs from the time of initial

Article 45-2 (2) 1 and 5 of the Framework Act on National Taxes, and subparagraphs 1, 2, 3, and 4 of Article 25-2 of the Enforcement Decree of the Framework Act on National Taxes

National Bank of Korea (Law Firm LLC, Attorneys So-young et al., Counsel for the defendant-appellant)

Head of Yeongdeungpo Tax Office

Seoul High Court Decision 2012Nu14189 decided November 21, 2012

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

The grounds of appeal are examined.

1. Article 45-2 (2) of the Framework Act on National Taxes provides that "Any person who has filed a tax base return by the statutory due date of return or who has received the determination of the tax base and amount of national taxes may request the determination or correction within two months from the date on which he/she becomes aware of the occurrence of the cause, regardless of the period stipulated in paragraph (1)." Article 45-2 (2) of the Enforcement Decree of the Framework Act on National Taxes provides that "when the transaction or act, etc. which served as the basis of the calculation of the tax base and amount of national taxes in the initial return, determination or correction becomes final and conclusive as different by a ruling of the relevant lawsuit (Article 1)" and "when the cause prescribed by Presidential Decree, which is similar to those under subparagraphs 1 through 4, takes place after the statutory due date of return of the relevant national tax, has expired" (Article 45-2 (2) 5 of the Framework Act on National Taxes). Article 25-2 of the Enforcement Decree of the Framework Act provides that "the first act, determination or correction, etc. of the tax base and amount of the relevant transaction or determination, becomes void or cancellation."

The purpose of the Framework Act on National Taxes is to expand the protection of taxpayers’ rights by allowing taxpayers to file a request for reduction of their tax base and amount of tax when there is a change in the basis of calculation of the tax base and amount of tax due to the occurrence of a certain subsequent cause after the establishment of the tax liability (see, e.g., Supreme Court Decision 2009Du22379, Jul. 28, 201). However, since the subsequent request for correction is based on a subsequent cause that had not existed at the time of the initial return or taxation, the grounds such as whether a transaction or act, which serves as the basis of calculation of the tax base and amount of tax, exists after the statutory due date of return of the national tax after the expiration of the statutory due date of return of the national tax, or a change in the legal effect thereof, may be included in the subsequent reasons as prescribed by Article 45-2(2)5 of the Framework Act on National Taxes, Article 25-2 subparag. 4 of the Enforcement Decree of the Framework Act on National Taxes, however

2. The lower court, citing the reasoning of the first instance judgment, acknowledged the facts as indicated in its reasoning, and determined that the instant disposition rejecting the Plaintiff’s request for correction was lawful, on the grounds that the grounds that the reasoning that a different judgment was made with respect to the same issue in the judgment on corporate tax for the business year 1999 of the National Bank of Korea prior to the merger is merely a different ground for interpretation of the relevant Acts and subordinate statutes after reporting corporate tax for each business year under Article 198 through 2001 of the Housing Bank prior to the merger, and that such ground cannot be deemed as a ground for subsequent request for correction under Article 45-2(2)

Examining the above provisions and legal principles, the judgment of the court below is just, and there is no error in the misapprehension of legal principles as to the grounds for ex post facto request for correction under Article 45-2 (2) of the Framework Act on National Taxes, and Article 25-2 of the Enforcement Decree

3. 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 Justices on the bench.

Justices Lee Sang-hoon (Presiding Justice)