The judgment of the court below is reversed.

Defendants shall be punished by imprisonment with prison labor for ten months and by a fine of four hundred million won.

The Defendants respectively.

1. Summary of grounds for appeal;

A. Defendant A’s assertion 1 of the misapprehension of the legal doctrine is in violation of the Act on the Aggravated Punishment, etc. of Specific Crimes (tax) and the Punishment of Tax Evaders Act. Since the evaded tax amount, which is the constituent element thereof, should be calculated in accordance with the principle of substantial taxation, value added to the Defendants should also be imposed only on the part where the Defendants actually

The Defendants operated the “J”, which is a private sports gambling site (hereinafter “instant gambling site”), caused its members to betting at home and abroad sports games and pay dividends depending on whether or not it is reasonable to do so. The Defendants received a total of KRW 17,296,32,542 (hereinafter “the instant betting amount”) from its members and returned KRW 16,251,486,938 (hereinafter “the instant dividends”) as dividends to its members.

Thus, since the defendants profit only from the money actually deducted the dividends from the above betting amount, the supply price, which serves as the basis for determining the establishment of each of the above tax crimes against the defendants, shall be based on the amount obtained by deducting the dividends of this case from the betting amount of this case.

Nevertheless, the court below erred by misapprehending the legal principles as to the calculation of the amount of evaded tax in tax crimes, since the defendants calculated the amount of evaded tax without deducting the total amount of the betting amount received by the members from the total amount of the betting amount.

2) In relation to the violation of the Act on the Aggravated Punishment, etc. of Specific Crimes (tax), each subparagraph of Article 8(1) of the Act on the Aggravated Punishment, etc. of Specific Crimes (hereinafter “Special Crimes Act”) where the sum of the amounts is above a certain amount based on the annual evasion tax amount, the said tax evasion act is subject to aggravated punishment. The term “annual” refers to January 1 of the calendar Act.