In case where the actual transaction price is determined in a lawsuit seeking cancellation of a transfer income tax assessment based on the standard market price under the former Income Tax Act (amended by Act No. 3576 of Dec. 21, 1982), the standard for calculating transfer margin

The purport of Article 170 (3) of the former Enforcement Decree of the Income Tax Act (amended by the Presidential Decree No. 10977 of Dec. 31, 1982) is that in case where the return on the profit accruing from the transfer of assets or the final return on the return of the profits accruing from the transfer of assets or the return on the return of the profits resulting from the transfer of assets is not made or a false report is made, it can be assessed on the basis of the standard market price by presumption that the actual transaction price is unclear, even if the tax authority imposed a tax based on the

Articles 23(4) and 45(1) of the former Income Tax Act (amended by Act No. 3576 of Dec. 21, 1982); Article 170(3) of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 10977 of Dec. 31, 1982)

Plaintiff

The Head of Hongcheon Tax Office

Seoul High Court Decision 88Gu1358 delivered on February 2, 1989

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

1. We examine the first ground for appeal by the defendant litigation performer.

If the contents of the Plaintiff’s land acquisition and transfer acknowledged by the record are compared to the trial evidence of the original court, it is not erroneous in the misapprehension of facts against the rules of evidence, such as the theory of appeal, and therefore, it is groundless to charge the original judgment without any ground for appeal.

2. We examine the second ground for appeal.

According to the provisions of Articles 23(4) and 45(1)1 of the former Income Tax Act (amended by Act No. 3576 of Dec. 21, 1982), which had been enforced at the time of the establishment of taxation requirements for the taxation of this case, the transfer and acquisition value of assets shall be based on the actual transaction price, but only on the case prescribed by the Presidential Decree. Accordingly, Article 170(3) of the former Enforcement Decree of the Income Tax Act (amended by the Presidential Decree No. 10977 of Dec. 31, 1982) provides that the standard market price shall be based on the actual transaction price in the case where the transfer or acquisition value of assets is not made or a final return is not made or a false return is made, the purpose of the former Enforcement Decree of the Income Tax Act is that the actual transaction price can be evaluated based on the standard market price by presumption that the actual transaction price is unclear. Thus, even if the tax authority seeks cancellation of the taxation disposition in accordance with the current market price under Article 170(3) of the former Enforcement Decree.

The court below's decision to the same purport is just and there is no error of law by misunderstanding the legal principles like the theory of lawsuit.

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.

Justices Kim Sang-won (Presiding Justice) Lee Jong-won (Presiding Justice)