Cho High 2012 Jeon 5256 (Ob. 21, 2013)

Farmland for which three years have passed since it was incorporated into a residential area and thus the disposition excluded from capital gains tax reduction is legitimate.

The interpretation of tax laws should be interpreted as the legal text, barring special circumstances. Therefore, it is difficult to exclude the application of the above statutory provisions solely on the ground that the construction is still limited and used as farmland, so long as the land for which three years have passed since the transfer was incorporated into a residential area and meets the requirements for the exclusion of capital gains tax

2013Gudan456 Revocation of Disposition of Imposing capital gains tax

Park AAA

Daejeon director of the tax office

June 28, 2013

July 19, 2013

1. The plaintiff's claim is dismissed.

2. The plaintiff shall bear the costs of lawsuit.

The Defendant’s imposition of capital gains tax of KRW 000 for the year 201 against the Plaintiff on October 8, 2012 shall be revoked.

1. Details of the disposition;

A. On January 13, 1997, the Plaintiff acquired and owned 172 square meters of 000 m2, Dong-gu, Daejeon (hereinafter “instant land”) and transferred the said land to 000 won on March 2, 201, and applied Article 69(1) of the Restriction of Special Taxation Act (hereinafter “the Restriction of Special Taxation Act”) to the Defendant for reduction or exemption of capital gains tax for at least eight years.

B. However, the Defendant refused to apply for reduction or exemption of capital gains tax according to the self-sufficiency requirement for at least eight years on the ground that the instant land constitutes farmland for which three years have passed since it was incorporated into a residential area at the time of transfer, and corrected and notified the transfer income tax of 00 won for the year 201 (including additional tax) (hereinafter “instant disposition”).

C. The Daejeon Metropolitan City Mayor decided and announced the Daejeon Urban Management Planning on July 20, 2006, and the land in this case was changed from the existing natural green area to the Class I general green area on July 20, 2006.

[Reasons for Recognition] The facts without dispute, Gap evidence 6, Eul evidence 1, and Eul evidence 2, and the whole purport of the pleading

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

The instant disposition, which excluded capital gains tax reduction or exemption on the ground that three years have elapsed since it was currently used as farmland because it was a water source protection area and it was not possible to construct the instant land, was unlawful.

B. Relevant statutes

It is as shown in the attached Form.

C. Determination

According to the provisions of the relevant Acts and subordinate statutes, among the farmland in the Special Metropolitan City, Metropolitan City or Si as of the date of transfer, the farmland for which three years have passed since the date of entry into the residential area under the National Land Planning and Utilization Act shall be excluded from the farmland subject to reduction and exemption. The purport of the provisions is to correct the unreasonable point that in the event that the farmland is cultivated in the farmland located in the adjacent residential area in the large city, even though there is no difference in the land and economic value, the transfer income tax is treated as the farmland, and to curb speculative demand for such farmland. The above purport and the principle of no taxation without law and the principle of no taxation without law, the interpretation of tax laws must be interpreted as the legal text, and the interpretation of tax laws shall not be permitted either extensively or analogically without any justifiable reason (see Supreme Court Decision 2008Du11372, Aug. 20, 209), and the premise that the construction of the farmland in this case is still being excluded from the application of the above provisions.

3. Conclusion

The plaintiff's claim is groundless, and it is decided as per Disposition without accepting it.