[1] The case affirming the judgment of the court below holding that the transfer of unlisted stocks traded together with the golf course facility use right is naturally incidental to the supply of the golf course facility use right, which is the main transaction, and thus becomes a taxable object of value-added tax

[2] The base amount for the value-added tax in case where the amount equivalent to the security deposit to be returned to golf membership transfer proceeds is included in the amount equivalent to the security deposit

[1] Article 1(4) of the Value-Added Tax Act, Article 3 of the former Enforcement Decree of the Value-Added Tax Act (amended by Presidential Decree No. 15973 of Dec. 31, 1998) / [2] Article 13(1)1 of the Value-Added Tax Act

[2] Supreme Court Decision 2000Du6961 Decided October 9, 2001

KM Co., Ltd. (Attorneys Cho Jong-man et al., Counsel for the defendant-appellant)

The Director of Gangnam District Office

Seoul High Court Decision 2003Nu13023 delivered on September 1, 2004

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

1. Regarding ground of appeal No. 1

According to the reasoning of the judgment below, the court below acknowledged the fact that the plaintiff, who is a business operator that runs a golf club business in this case, issued a membership certificate representing the right to use the golf club facilities at the time of the purchase of the instant golf club membership from the existing members and the stock certificate of the non-listed stock issued by the non-party company (a membership certificate and stock certificate are transferred to the same number) and later, when transferring the instant golf club membership to another, a membership certificate and stock certificate were issued and transferred along with the membership certificate. In the event that the instant golf club membership, which was traded by the plaintiff, is combined with the golf club facility use right and non-listed stock as one of the main transaction, is always traded at all times, the transfer of the non-listed stock is naturally incidental to the supply of the right to use the golf club facility, which is the main transaction, and is subject to value-added tax pursuant to

In light of relevant Acts and subordinate statutes and records, the above fact-finding and judgment of the court below are just, and there is no error of law by misunderstanding of facts or misunderstanding of legal principles as to incidental goods subject to value-added tax, as otherwise alleged in the ground of appeal.

2. Regarding ground of appeal No. 2

According to Article 13(1)1 of the Value-Added Tax Act, the tax base of value-added tax on the supply of goods and services shall be the price excluding value-added tax in a case where the price is paid in money. Thus, in a case where a person who has sold or acquired golf membership transfers it to a third party again, the tax base of value-added tax shall be the total amount of the transfer price of the transaction, and the amount equivalent to the security deposits for admission which has been refunded after the lapse of a certain period shall not be deemed any different (see Supreme Court Decision 200Du6961, Oct. 9, 200).

In the same purport, the court below is just in holding that the disposition of this case, which was calculated by considering the total proceeds of golf membership transfer as the tax base, is legitimate, and there is no error in the misapprehension of legal principles as to the tax base of value-added tax.

3. 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 on the bench.

Justices Zwon (Presiding Justice)