Defendant

Punishment A. One year and six months of imprisonment and fine of 600 million won, and fine of 5.0 million won for Defendant B.

Punishment of the crime

Defendant

A from August 1, 2010, the Defendant B operated the company for the purpose of wholesale business of recycled products.

1. Defendant A

A. The Defendant violated the Act on the Aggravated Punishment, etc. of Specific Crimes (taxes) has been supplied with scrap metal, etc. from the unregistered business operators without tax invoices, and has used the third party’s resident registration numbers printed on the abolition, etc. at will to be deducted from the value-added tax by pretending to be supplied with

Around January 25, 2011, the Defendant filed the final return of value-added tax for the second period of 2010 with E, etc. on or around 25, 2011, the Defendant had no fact of being supplied goods or services equivalent to KRW 3,473,329,120 in total with the value of supply from E, etc., but, if there is such fact, the Defendant would be entitled to deduction of value-added tax KRW 172,061,674 by preparing and submitting a report on deduction of the input tax amount for recycled waste resources and used goods. (ii) In filing the preliminary return of value-added tax for the first period of 201 with B around April 25, 2011, the Defendant would be entitled to deduction of KRW 4,326,95,070 in total from the value of supply for recycled waste resources and used goods without any fact of deducting the value of supply for recycled waste resources and used goods from the value of supply for such goods.

As a result, the Defendant was deducted from the total value-added tax from January 25, 201 to July 25, 201 by fraud or other unlawful act.

(b) Violation of the Punishment of Tax Evaders Act;