Methods for calculating gains on transfer of property donated without compensation;

According to the provisions of Article 59-2(3) of the former Corporate Tax Act (amended by Act No. 3099 of Dec. 5, 1978), Articles 124-2(2) and 48(2)3 of the Enforcement Decree of the same Act (amended by Presidential Decree No. 9230 of Dec. 30, 1978), when calculating gains on transfer, which is the tax base of special surtax, transfer or acquisition value shall be based on the same actual transaction price or current market price, one of the transfer or acquisition value shall be based on the same actual transaction price, and the other shall not be permitted in terms of equity. The property for which a free application has been filed shall be calculated on the basis of the current market price in cases where a transfer or acquisition value is deemed to be the acquisition price at the time of acquisition, or where the normal price is unclear,

Article 59-2(3) of the former Corporate Tax Act (Amended by Act No. 3099, Dec. 5, 1978); Article 124-2(2) and Article 48(2)3 of the former Enforcement Decree of the Corporate Tax Act (Amended by Presidential Decree No. 9230, Dec. 30, 1978);

Supreme Court Decision 82Nu557 delivered on April 26, 1983, 82Nu282 delivered on November 22, 1983

3. School Foundation

Head of the Do Tax Office

Seoul High Court Decision 83Gu726 delivered on June 19, 1984

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

The grounds of appeal are examined.

Article 59-2 (3) of the Corporate Tax Act (amended by Act No. 3099 of Dec. 5, 1978) which was in force at the time of this case provides that the transfer value shall be the amount calculated by deducting the acquisition value and expenses as determined by the Presidential Decree from the transfer value, and where the transfer value and acquisition value are unclear, the transfer value and acquisition value shall be the amount based on the standard market price at the time of transfer as determined by the Presidential Decree, and the amount based on the standard market price at the time of its acquisition shall be the transfer value and acquisition value, respectively. Meanwhile, Articles 124-2 (2) and 48 (2) 3 of the Enforcement Decree of the Corporate Tax Act (amended by the Presidential Decree No. 9230 of Dec. 30, 1978) provide that the transfer value and acquisition value of the property contributed without compensation shall be based on the normal price or the standard market price at the time of its acquisition, and any other property at the time of its acquisition shall not be equally permitted, and if the acquisition value and acquisition value at the time of the property received without compensation are unclear.

From the above view, even if the court below entered the standard market price at the time of acquisition of the real estate contributed free of charge in the book, the price at the time of acquisition shall not be deemed the normal price at the time of acquisition. Therefore, in calculating the transfer margin, which serves as the tax base for the special consumption tax in this case, the measure that calculated both the transfer price and the acquisition price based on the standard market price shall be deemed lawful, and there shall be no misapprehension of legal principles

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 Young-ju (Presiding Justice)