1. The Defendant’s decision on the Defendant’s recommendation for payment of wages in Suwon District Court 2019 Ghana 109171.

Basic Facts

The Defendant filed a claim against the Plaintiff for wage reimbursement against the Plaintiff on March 28, 2019 (hereinafter “instant decision on performance recommendation”) with the effect that “the Plaintiff shall pay to the Defendant 9,99,990 won and the amount calculated at the rate of 20% per annum from December 15, 2018 to the date of full payment” (hereinafter “decision on performance recommendation”).

The instant decision on performance recommendation was finalized on April 16, 2019.

On May 21, 2019, the Defendant received substitute payment of KRW 4 million from the Korea Labor Welfare Corporation.

[Reasons for Recognition] Facts without dispute, Gap evidence Nos. 1 through 4 and the purport of the entire argument, and Article 135 (1) of the Income Tax Act of the plaintiff's assertion that the plaintiff's earned income should be withheld by deeming that the plaintiff was paid on December 31 in the event that the plaintiff did not pay earned income. Thus, the plaintiff is obligated to pay the defendant the amount within the remaining amount after deducting the total national taxes and medical insurance premiums, which are the source tax, from the amount of wages under the decision on performance recommendation of this case.

Since the Defendant received a substitute payment of KRW 4 million, the Plaintiff is obligated to pay the Defendant the remainder within the scope of the amount remaining after deducting the substitute payment of KRW 4 million from the wages under the decision on performance recommendation of this case.

Therefore, the decision of execution recommendation of this case should not be allowed with respect to the portion exceeding the remainder after deducting the above amount.

Judgment

Under the Income Tax Act on the determination of a source tax claim, where a payer of an income amount bears the obligation of withholding tax on the premise of a beneficiary’s tax liability, and where a beneficiary’s tax liability is not established, the payer’s obligation of collecting source tax on the premise cannot be established.

In principle, a person liable to collect income tax, etc. withheld under Article 21 (2) 1 of the Framework Act on National Taxes shall be liable for payment.