early 201.037 ( November 001. 201)

Since trees are used as a place where farming income is obtained by cultivating and cultivating trees, they fall under the farmland at the time of transfer.

In light of the fact that a lessee leases land to the purpose of landscaping, planting trees and selling trees and uses agricultural electricity for the purpose of use, the lessee manages and raises trees by planting seedlings and sexual trees on the land, such as spraying of agrochemicals, planting plants, and batteries, and registered as farmland on the farmland ledger, it is reasonable to deem that he/she was farmland at the time of transfer.

2012Guhap401 Revocation of Disposition of Imposing capital gains tax

Hongx

Daejeon Head of the District Tax Office

October 24, 2012

November 21, 2012

1. The Defendant’s disposition of imposition of capital gains tax of KRW 000 for the year 2009 against the Plaintiff on July 1, 2010 is revoked.

2. The costs of the lawsuit are assessed against the defendant.

The same shall apply to the order.

1. Details of the disposition;

A. On December 30, 2009, the Plaintiff completed the registration of ownership transfer with the Korea Land and Housing Corporation on December 30, 2009, on the basis of an agreement on the acquisition of public land with respect to the same 00 m2,598 m2,00 m2,569 m2,000 m2,00 m2,000 m2,000 m2,569 m2,000 m2,569 m2,00 m2

B. On February 26, 2010, the Plaintiff reported KRW 000 of the capital gains tax calculated by applying the capital gains tax reduction and exemption provisions under Article 69 of the Restriction of Special Taxation Act on the ground that the instant land was farmland at the time of transfer upon filing a preliminary return of capital gains tax with the Defendant, and that it satisfied the requirements

C. On July 1, 2010, the Defendant denied the tax reduction or exemption for farmland at the time of transfer on the ground that newAA, the lessee of the instant land, used it as a provisional decoration for the sale of landscape trees, and subsequently, corrected and notified KRW 000 of the capital gains tax on the instant land (hereinafter “instant disposition”).

D. On September 17, 2010, the Plaintiff appealed against the instant disposition, but was dismissed. On November 6, 2011, the Tax Tribunal rendered a re-audit decision to the effect that “The Tax Tribunal shall re-examine whether the land of this case where trees exist at the time of transfer is simply used for sale, and whether it is land where landscape trees are planted and cultivated by planting landscape trees, and that the area corresponding to the land where landscape trees are cultivated by planting landscape trees shall be deemed farmland at the time of transfer, and shall be deemed to be farmland at the time of transfer and correction of the relevant tax amount.”

[Ground of recognition] Facts without dispute, Gap evidence Nos. 1, 8, 11 (including branch numbers in case of provisional number; hereinafter the same shall apply), Eul evidence No. 1, and the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

The land of this case is used as a place for growing trees and seedlings as of the date of the transfer, and constitutes farmland. The defendant's disposition of this case under a different premise is unlawful.

B. Relevant statutes

The entries in the attached Table-related statutes are as follows.

C. Determination

Article 69(1) of the Restriction of Special Taxation Act and Article 66(4) and (5) of the Enforcement Decree of the same Act stipulate that capital gains tax shall be reduced by 100% on ‘farmland as of the date of the transfer in which a person who resides in a location of farmland has cultivated directly for not less than eight years.' According to Article 2(1)(a) of the Farmland Act, ‘farmland' means land actually used as farmland for crops or for perennial plants regardless of its land category. According to Article 2(1) of the Enforcement Decree of the Farmland Act, the land for growing perennial plants includes not only ginseng, medicinal herbs or fruit trees, or fruit trees for afforestation, trees for planting, trees for planting or ornamental trees, and their seedlings, etc., but also it is defined that the land for growing perennial plants for simple landscaping purposes is excluded from the land for planting perennial plants.

On the other hand, the term "crops" generally refers to an act of earning income or creating value by managing and growing crops or trees for a certain period, so it can be deemed that it falls under farmland in the case of land where there is an income from growing growing trees, etc. for a considerable period after planting them and growing them for a considerable period. However, for example, if a landscape business operator has already purchased trees cultivated and commercialized in another place and sells them again to another place and uses them as a place where trees are planted and stored temporarily for a short period in the process of creating income from gains from the market price profits, it shall not be deemed that income from growing trees from the above land is generated, and such land cannot be deemed as falling under farmland for agricultural purposes, i.e., the growing area of trees for a simple landscaping purpose.

(5) In light of the following circumstances, i.e., (1) new growing trees 10, 10, 20 to 16, 10, 20, 20 through 27, i.e., 10, 200, 30, 40, 100, 100, 200, 10, 100, 10, 100, 205, 205, 205, 30, 10,000, 10,000, 10,000, 10,000, 10,000, 10,000, 10,000, 10,000, 10,000, 10,000, 10,000,000,00,00,00,00,00,00.

3. Conclusion

Therefore, the plaintiff's claim of this case is justified and it is so decided as per Disposition.