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1. Corporate tax withheld for the business year 2006, which the Defendant withheld for the Plaintiff on March 2, 201, KRW 688,517,420, and the business year 2007.
Reasons
1. Details of the disposition;
A. On June 9, 1977, the Plaintiff was a company established mainly for the purpose of leasing, selling, and selling real estate, and owned B building in Jung-gu, Seoul (ground floor 23, underground floor 8).
B. C (hereinafter “C”) is a German limited partnership company established as an investment fund under the German Commercial Code, and its fund investors are as shown in attached Form 1. On August 13, 2003, as a special purpose company, DmbH 1, and E (hereinafter “GmbH 2,”) established under the German Limited Liability Company Act, and acquired and held 100% of each of its issued shares, and GmbH 1, and 2 acquired and held 50% of each of the Plaintiff’s shares from August 28, 2003.
The amount of dividend paid in the taxable period (won) shall be April 3, 2006,06,060,07,07,422 139,094,428,428,756,76 175,308,030,030,601,645 8,062,062, 280,580, 580, 196,145,145,21254,370, 2375, 131,234,060,0605,5305,805,837,847,406, 208
C. From 2006 to 2008, the Plaintiff paid to GmbH 1 and 2 totaling KRW 131,663,835,005 (hereinafter “instant dividend income”). As to the instant dividend income, Article 10(2)A of the Convention between the Republic of Korea and the Federal Republic of Germany for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital (hereinafter “Korea- Germany Tax Treaty”).
By applying the limited tax rate of item 5%, 8,437,018,460 won was withheld and paid to the defendant.
The Defendant, as C, the beneficial owner of the instant dividend income, is the parent company of GmbH 1 and 2, deemed to have established GmbH 1 and 2 for the purpose of enjoying benefit from the application of the limited tax rate under the Korea- Germany Tax Treaty, and thus, excluded the application of the Korea- Germany Tax Treaty and applying the tax rate of 25% stipulated in Article 98(1)3 of the Corporate Tax Act (amended by Act No. 9267, Dec. 26, 2008; hereinafter the same shall apply) to the Plaintiff on March 2, 201 by applying the tax rate of 25% stipulated in Article 98(1)3 of the Corporate Tax Act.