Standard for determining the occurrence of income subject to income tax;

In order to ensure that income which is subject to income tax has been realized, even if it is unnecessary until it is realized, it should be confirmed that the right to generate income is considerably high in the possibility of such realization.

Articles 2 and 28 of the Income Tax Act

Supreme Court Decision 86Nu357 Decided May 26, 1987

Plaintiff

Head of Daegu Tax Office

Daegu High Court Decision 87Gu35 delivered on July 10, 1987

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

In order to ensure that income which is subject to income tax has been realized, even if it is unnecessary until it is realized, it should be confirmed that the right to generate income is considerably mature in the realization of the income. Therefore, if the right does not reach such degree, there is no income which is subject to income tax.

According to the reasoning of the judgment below, the court below determined on July 2, 198, that the plaintiff 1 loaned 7,00,000 won to the non-party 1 with interest rate of 3% per month on the above 0th of July 2, 198, but the above non-party 1 paid 2,10,000 won to the plaintiff around August 1983 as part of the above principal of the loan, and did not pay 1,00,000 won to the non-party 1 for the above 0th of July 2, 198. The above non-party 1 did not receive the above 0th of July 2, 1983 interest income from the above 0th of the lease contract and the above 0th of the lease deposit, which had no possibility of being refunded to the non-party 2 for the above 10th of the lease deposit to the above non-party 1 to the above 0th of the lease deposit.

In light of the records, the above fact-finding and judgment of the court below are just and there are no errors in matters of law such as misunderstanding of facts or misunderstanding of legal principles as to interest income, etc.

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 Man-hee (Presiding Justice)