All appeals filed against Defendant A by the Defendants and the Prosecutor are dismissed.

An application filed by an applicant for compensation shall be dismissed.

1. Summary of grounds for appeal;

A. (1) The Defendants Company B (hereinafter “Defendant B”) issued and received tax invoices by purchasing actually used cars.

(2) The lower court’s punishment on the Defendants is too unreasonable.

B. The Prosecutor’s sentence against Defendant A by the lower court is too unhued and unreasonable.

2. Determination

A. As to the Defendants’ assertion of mistake of facts, the following facts can be acknowledged in full view of the evidence duly admitted and examined by the original court.

(A) Defendant B is a corporation established around July 2009 for the purpose of the used cars export trade business, etc., and Defendant A is the representative director of the above company. Defendant B purchased new cars and mainly exported them to a foreign country on a short and medium-lane basis.

(B) Article 110(4)2 of the former Enforcement Decree of the Act on Special Cases concerning the Taxation Restriction (amended by Presidential Decree No. 22003, Feb. 18, 2010) provides that a person who does not engage in a business subject to value-added tax pursuant to Article 108 of the Act on Special Cases concerning the Taxation Restriction may be entitled to deduct the input tax amount even if he/she acquires used cars from a person who does not engage in a business subject to value-added tax if he/she exports used cars. However, the said Enforcement Decree was revised on February 18, 2010, and the date of manufacture indicated in the register of automobiles under Article 8 of the Decree and the date of export declaration stated in the registration of automobiles under Article 32 of the same Decree from the date of export performance to the date of export declaration under Article 32 of the same Decree was excluded from the category of used cars whose period is less than one year (Article 110(4)2 of the Enforcement Decree of the Act on Special Cases concerning the Taxation Restriction).

(C) The name of the defendant A, who is the branch of the defendant A, is the name of AS.