1. Revocation of the first instance judgment.

2. The Defendant’s corporate tax for the business year 2013 to the Plaintiff on December 5, 2016 KRW 412,181,620, supra.

1. As to the details of the disposition, the relevant part of the reasoning of the first instance judgment shall be cited pursuant to Article 8(2) of the Administrative Litigation Act and the main sentence of Article 420 of the Civil Procedure Act.

2. Whether the instant disposition is lawful

A. The Plaintiff’s assertion (i.e., sale to the Plaintiff’s members is not a profit-making business, and the settlement money for union members constitutes an investment by union members, and is not included in the scope of gross income in calculating taxable income for the business year.

Therefore, the disposition of this case which imposes corporate tax by including the settlement money of partners into gross income is unlawful.

Pursuant to the provisions of the Act on the Maintenance and Improvement of Urban Areas, the Plaintiff transferred the infrastructure for maintenance, which is disused due to the implementation of the improvement project, without compensation, from the North-gu Busan Metropolitan City, and transferred the infrastructure for maintenance newly installed due to the instant construction to the North-Gu Busan Metropolitan City without compensation. Since the value of land gratuitously reverted to the Busan Metropolitan City is larger than the value of land acquired from the North-gu Busan Metropolitan City, the corporate tax shall be determined by reflecting the relevant portion of the difference, which

(b) as shown in the attached Form of the relevant statutes;

C. (1) Determination as to the inclusion of a partner’s liquidation money in gross income (see, e.g., Article 3(1) of the Corporate Tax Act) is to impose corporate tax on non-profit domestic corporations for each business year in addition to real estate transfer income (see, e.g., Article 3(1)

(Article 3(3) of the Corporate Tax Act and Article 3(3) of the Housing Construction Promotion Act, where a reconstruction association authorized to establish an association under the Housing Construction Promotion Act before June 30, 2003, registered as a corporation under the Urban Improvement Act files a corporate tax return pursuant to the Corporate Tax Act, the Corporate Tax Act shall apply

(Article 104-7 (1) of the Restriction of Special Taxation Act).