Whether interest income accrued from the business without business registration without authorization for a short-term financial business constitutes business income accrued from the proceeds business.

If five vehicles for business and seven full-time employees are employed for a long period of one year without business registration, and 70 billion won are used to lend money to the customers over a number of times and gain interest thereon, it shall be deemed that the above monetary transaction is engaged in the price business for the purpose of acquiring the interest income, even if it was not authorized by the Minister of Finance and Economy under the Short-Term Finance Business Act and it was not completed business registration, and even if it was not approved by the Minister of Finance and Economy under the Short-Term Finance Business Act, it shall be deemed that the above monetary transaction was conducted for the purpose of acquiring the interest income. Therefore, the revenue from the interest income accrued from the above monetary transaction constitutes the business income accrued from the price business as stipulated in Article 20 (1) 8 of the Income Tax Act (amended by Act No. 3576, Dec. 21, 1982) at the time of the transaction.

Article 20 (1) of the former Income Tax Act (amended by Act No. 3576 of Dec. 21, 1982); Article 36 of the former Enforcement Decree of the Income Tax Act

Plaintiff 1 and one other, Plaintiffs et al., Counsel for the defendant-appellant-appellee and Han-do-appellee

Head of Yongsan Tax Office

Seoul High Court Decision 84Gu801 delivered on October 29, 1985

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

According to the court below's adopted evidence, the court below determined that the plaintiff 1 did not obtain the approval of the short-term financing business from Sep. 1978 to Apr. 198, 198, the plaintiff 1 employed 5 and 7 full-time employees from Sep. 21, 198 and used 90 billion won funds to lend money to 70 customers over a number of hundred and seventy times as stated in the decision and acquire interest income. The court below's above findings of fact are acceptable, and if the above facts are different, the above plaintiff 1 did not obtain the approval of the Minister of Finance and Economy under the Short-term Finance Business Act and did not make the business registration, the above monetary transaction should be viewed as an act of acquiring interest income for the purpose of acquiring interest income in light of its size, number of times, human resources, degree of physical facilities, mode of transaction, etc., and therefore, the above opinion of the court below is justified in the misapprehension of legal principles as to the income tax law as stated in Article 1821 of the Income Tax Act, and its reasoning.

The business income from the price business under the Income Tax Act refers solely to the interest income of a person who has obtained the approval of a short-term financial business from the Minister of Finance and Economy under the Short-term Finance Business Act or who has completed business registration, and the standard of such interpretation is a single opinion that it falls under the interpretation of the Income Tax Act or the practice of national tax administration, which is generally accepted by the taxpayers under Article 18(2) of the Framework Act on National Taxes (amended by Act No. 3756 of Aug. 7, 1984). Therefore,

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.

Justices Lee Jae-hee (Presiding Justice)