The part of the judgment of the court below against the plaintiff concerning notification of change in income amount shall be reversed, and this part of the case shall be reversed.

The grounds of appeal are examined.

1. As to the imposition of corporate tax

A. (1) As to the portion of cash payment, Article 19(2) of the former Corporate Tax Act (amended by Act No. 10423, Dec. 30, 2010; hereinafter the same) provides that, in principle, the amount of loss incurred or spent in connection with the business of the corporation is generally accepted as ordinary or directly related to profit.

Here, “generally accepted expenses” refer to expenses deemed to have been disbursed if other corporations engaged in the same type of business as taxpayers are in the same situation. Whether such expenses constitute such expenses ought to be objectively determined by comprehensively taking into account the process, purpose, form, amount, effect, etc. of disbursement. Barring special circumstances, the costs spent in violation of sound social order are excluded here (see Supreme Court Decision 2007Du12422, Nov. 12, 2009). (2) Based on the adopted evidence, the lower court: (a) based on such adopted evidence, the Plaintiff, who is a medicine manufacturer, made a total of 38,417,451,436 won in cash with 29,860,266,747 won (hereinafter “the instant cash payment”) and the total amount of KRW 200,000,0000,000,000 entertainment expense paid to the Plaintiff for each business year, under the premise that the Defendant had paid corporate tax for KRW 13,197,87,77.