Requirements for decision of estimation of value-added tax and special consumption tax and burden of proof therefor.

In the imposition of value-added tax and special consumption tax, the principle of on-site investigation decision is admitted only when it is impossible to make a field investigation decision, so the requirements of the estimation should be strictly interpreted, and even if there is no account book and other documentary evidence, if it is possible to conduct a field investigation, it should be decided on the spot investigation, not the estimation decision, and the burden of proof

Article 21(2) of the Value-Added Tax Act, Article 11(2) of the Special Consumption Tax Act, Article 18(1) of the Enforcement Decree of the Special Consumption Tax Act.

Plaintiff

Head of Central Tax Office

Daegu High Court Decision 84Gu82 delivered on April 17, 1985

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal by the defendant litigant are examined.

The theory is that the government can correct the estimation if there are the grounds stipulated in Article 21 (2) 1 and 2 of the Value-Added Tax Act and Article 11 (2) of the Special Consumption Tax Act and Article 18 (1) 1 and 2 of the Enforcement Decree of the same Act. However, in the imposition of the value-added tax and the special consumption tax, the principle of a field investigation decision is applied only when it is impossible to make a field investigation decision, but the above estimation requirement should be strictly interpreted, and even if there is no account book and other documentary evidence, if a field investigation is possible, a field investigation decision should be made, and the burden of proof of the estimation requirement should be borne by the tax authority.

In this case, the court below found the following facts as follows. (1) The plaintiff's 2-1-2-2-2-2-2-2-2-2-2-2-3-2-2-3-2-3-2-3-4-2-3-4-2-3-4-4-2-3-4-4-2-3-4-4-4-2-3-4-4-4-4-4-2-6-1-6-3-3-4-4-4-4-4-2-4-4-4-4-7-1-6-3-3-4-4-4-4-4-7-1-6-3-3-4-4-1-6-3-4-4-4-4-4-4-4-7-7-7-1-6-1-6-1-6-1-6-3-1-6-1-6-1-6-1-6-1-6-1-6-1-6-3-1-6-3-3-1-6-1-3-1-2-3-3-4-3-3-3-1-4-3-2-3-3-3-

Therefore, the appeal is dismissed, and the costs of the appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Kim Jong-sik (Presiding Justice)