beta
Text
1. The Defendant’s claim for correction of KRW 8,915,972,023 to the Plaintiff for corporate tax belonging to the business year of 2013, which was made on September 9, 2016.
Reasons
1. Details of the disposition;
A. In the year 2013 and 2014, the Plaintiff owned 50% of the equity interest in the East Franchisia, a Chinese corporation, and 30% of the equity interest in the Hyundai Franchisia, a Chinese corporation.
(hereinafter referred to as “instant Chinese subsidiary”) B.
In the year 2013 and 2014, the Plaintiff received dividends from the instant Chinese subsidiaries (hereinafter “instant dividends”) as indicated below, and filed a corporate tax return with the Defendant by applying the foreign tax credit provision under Article 57 of the former Corporate Tax Act (wholly amended by Act No. 12850, Dec. 23, 2014; hereinafter the same shall apply).
[ table] The dividend amount for the business year 2013, 2014 and foreign tax credit (units: 314,759,250,000 foreign tax payable for the dividend income of the Chinese subsidiary company for the business year of the business year (units) shall be 50% 87,430,441 - 11,592,395,905 - 15,216,660,000 for the 2018,666,700 for the 2014 East Franchis, 2013, the foreign tax payable for the dividend income of the Chinese subsidiary company for the business year of the business year (units: 648,642,610,027,530,534,46363
C. The Plaintiff, pursuant to Article 10(2) of the Agreement between the Government of the Republic of Korea and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter “instant Tax Treaty”), in addition to the amount of 5% paid in China with respect to the dividend in this case, pursuant to Article 57(3) of the former Corporate Tax Act and Article 5(1) of the Protocol Between the Government of the Republic of Korea and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter “instant Protocol B”), should be additionally recognized for the Plaintiff by applying Article 23(3) of the Korea-China Tax Treaty as replaced by Article 23(3) of the said Treaty (hereinafter “instant Protocol”).