Taxes for which the business transferee becomes liable for secondary tax payment;

Pursuant to Article 41 of the Framework Act on National Taxes, the national tax, additional dues, and expenses for disposition on default, for which a business transferee is liable for the secondary tax liability is either the property of the transferor or the business operated by the transferor, which are already imposed at the time of the transfer of the business. Therefore, the tax on gains from sale arising from the transfer of the business by the business transferor is not subject to the secondary tax liability.

Article 41 of the Framework Act on National Taxes

Supreme Court Decision 74Nu269 Decided July 11, 1978 80Nu500 Decided March 24, 1981

[Judgment of the court below]

Head of the Daegu Tax Office

Daegu High Court Decision 80Gu151 delivered on March 10, 1981

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal by the defendant litigant are examined.

Pursuant to the provisions of Article 41 of the Framework Act on National Taxes, it is reasonable to interpret that the transferee of a business is the taxpayer's property or the transferor's tax already imposed at the time of the transfer of the business.

According to the facts established by the court below, it is evident that the corporate tax and additional tax in this case are imposed on the sales profit accrued from the transfer of the land, factory building and machinery facilities owned by the non-party corporation, the non-party corporation, who is engaged in the chemical business, to the plaintiff. Thus, even if the transfer of the above site is regarded as the business transfer, the above tax is not already imposed on the transferor at the time of the transfer, but cannot be seen as related to the transferor's business, and thus, it cannot be seen as subject to

In the above purport, the court below is just in cancelling the defendant's disposition that designated the plaintiff as the secondary taxpayer for the corporate tax, defense tax and additional tax of this case, and there is no error of law such as the theory of lawsuit.

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 Lee Sung-soo (Presiding Justice)