All of the plaintiffs' claims against the defendants are dismissed.

The costs of lawsuit shall be borne by the plaintiffs.

Summary of the case

A. Defendant C is a certified tax accountant, and Defendant D is an employee of the certified tax accountant office operated by Defendant C.

B. Defendant C filed a return on Plaintiff B’s income as business income on behalf of the Plaintiff B, who is engaged in entertainment activities, including the comprehensive income tax belonging to the year 2015 and year 2016.

(c)

Plaintiff

A Co., Ltd. (hereinafter “Plaintiff Co., Ltd”) delegated Defendant C with the duties of proxy for tax bookkeeping and tax return reporting, around December 2016.

Plaintiff

From January 1, 2017, the company appropriated the income from the Plaintiff’s entertainment activities as the sales amount of the Plaintiff company, and made the accounting of the Plaintiff’s salary and bonus to the Plaintiff B. Accordingly, the Defendant C filed a tax return on the Plaintiff Company on the premise that the said salary and bonus received from the Plaintiff Company is “ earned income” on behalf of the Plaintiff Company’s 2017 attribution and each value-added tax belonging to year 2017 and year 2018, and corporate tax return duties.

(d)

On June 27, 2019, the head of the Yongsan-si Tax Office sent a notice to the Plaintiff Company requesting explanation on the appropriateness of the requirements for the payment of wage and salary income to the Plaintiff Company B with respect to the distribution of the income by calculating the individual business income as the sales of the Plaintiff Company. The Plaintiffs made a revised return of the total income tax for the Plaintiff B in 2017, 2018 and 2019, with the income from the entertainment activities of Plaintiff B as business income through E tax accountants, and filed a revised return of the value added tax and the source collection return for the Plaintiff Company in 2017 and 22018, and filed a revised return of the total income tax for the Plaintiff B in 2017 and 2018.

According to the above revised return or revised request, the Plaintiff Company imposed an additional tax of KRW 13,384,136 and the additional tax of KRW 1,995,619 on the aggregate of KRW 15,379,755; and Plaintiff B imposed an additional tax of KRW 66,703,978 on the aggregate of the additional tax of KRW 1,95,619. The representative director of the Plaintiff Company was F.