Whether "use" under Article 142 (1) 1 (7) of the former Local Tax Act (amended by Presidential Decree No. 10663, Dec. 31, 1981) constitutes "use" under Article 142 (1) 1 (7) of the former Local Tax Act (negative)

The phrase “use” under Article 142(1)1(7) of the former Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 10663 of December 31, 1981) cannot be deemed to constitute “use” under Article 142(1)1(7) of the former Enforcement Decree of the Local Tax Act.

Article 142 (1) 1 (7) of the Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 10663 of Dec. 31, 1981)

[Defendant-Appellee] Defendant 1 and 3 others

The head of Seongbuk-gu Seoul Metropolitan Government

Seoul High Court Decision 82Gu818 delivered on March 29, 1983

Supreme Court Decision 82Nu110 Delivered on September 14, 1982

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

The Plaintiff’s attorney’s ground of appeal is examined.

According to Article 142 (1) 1 (7) of the Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 10663, Dec. 31, 1981) which was enforced at the time of the occurrence of taxation requirement of this case, with respect to land for non-business use of a corporation, "land which is not used directly by a corporation for its proper purpose without justifiable reasons as of the date of commencing the payment period of property tax: Provided, That the following land shall not be deemed land for non-business use of a corporation, and "a land for which the period from the date of commencing the payment period after acquisition by a corporation has not elapsed two years from the date of commencing the payment period of property tax" shall be deemed "land for housing construction for which the period from the date of commencing the payment period of property tax has not elapsed after the acquisition by a corporation". According to the facts duly confirmed by the court below, the plaintiff corporation's purpose of which was the sale of real estate and civil construction projects and all incidental projects of this case shall not be deemed to fall under the above construction work without permission of Article 14 (7).

Therefore, this case's land becomes non-business land of a corporation only after two years have elapsed since February 26, 1978 after the date on which the plaintiff acquired the ownership pursuant to the above (D) and it is apparent that 3 years have not yet elapsed from the date on which the property tax payment of this case was commenced until September 16, 1980, and its tax rate shall be 1,000 - 50 - less than 3 years under Article 188 (1) 1 (3) of the Local Tax Act. The judgment below is just and it cannot be accepted as an independent opinion that the tax rate should be applied to this case's land under Article 188 (1) 1 (1) of the Local Tax Act.

Therefore, the appeal is dismissed, and all 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 O Sung-sung(Presiding Justice)