Scope of the national taxes for which a business transferee is liable for secondary tax payment;

Under the provisions of Article 41 of the Framework Act on National Taxes, the taxpayer may not pay the secondary tax liability to the transferee with respect to the national tax imposed on the transferor of the business or additional dues or tax payment disposal expenses on the premise of the determination of the tax amount determined by the procedures under the relevant tax-related Acts at the time of the transfer or acquisition of the business, and it is required that the transferee of the business becomes final and conclusive at the time of the transfer or acquisition of the business.

Article 41 of the Framework Act on National Taxes

Supreme Court Decision 80Nu150 Decided September 9, 1980; 82Nu192 Decided December 14, 1982; 83Nu63 Decided November 22, 1983; 84Nu644 Decided January 22, 1985; 86Nu605 Decided February 24, 1987; and

Plaintiff

Head of Suwon Tax Office

Seoul High Court Decision 86Gu612 delivered on November 12, 1987

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

According to the provision of Article 41 of the Framework Act on National Taxes, the tax liability of the business transferee for the second tax liability is determined by the procedure under the relevant tax law at the time of transfer of business, and at the time of transfer of business, and the liability of the business transferor for the second tax liability is determined. As to the national tax imposed on the business transferor after the transfer or takeover of business, or the additional dues or disposition fee for arrears on the premise thereof, the secondary tax liability cannot be imposed on the business transferee (see, e.g., Supreme Court Decision 80Nu150, Sept. 9, 1980; Supreme Court Decision 82Nu192, Dec. 14, 1982; Supreme Court Decision 82Nu192, Dec. 14, 1982). According to the reasoning of the court below, the decision of the court below that the above corporate tax, defense tax, and value-added tax as stated in the annexed tax item list by the year to which the attached tax belongs is unlawful by misapprehending the legal principles as to the tax liability of this case.

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 Jin-hun (Presiding Justice)