king New Zealand District Housing Redevelopment and Improvement Project Association (Attorney Ahn Byung-jin, Counsel for the plaintiff-appellant)

head of Sung Dong Tax Office

July 20, 2012

Seoul Administrative Court Decision 201Guhap3128 decided January 12, 2012

1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

The judgment of the first instance shall be revoked. The defendant's rejection of the claim for refund of value-added tax of KRW 158,550,833 for the second period of February 25, 2008 against the plaintiff on February 25, 2009 shall be revoked.

The reasoning of this decision is as shown in the judgment of the court of first instance (as alleged in the court of first instance, the plaintiff asserts that the court of first instance, while arguing that the plaintiff's assertion was made by the court of first instance, was based on the plaintiff's assertion that the amount of the house and commercial building to be supplied to the members is subject to the deduction of the input tax amount related to the area of the house for general sale, which is the object of value-added tax, among the houses exceeding the scale of national housing, and thus, did not appear to have been alleged by the plaintiff, and eventually, the plaintiff's primary argument was rejected. However, the judgment of the court of first instance is that the input tax related to the area of the house and commercial building to be supplied to the members of the association, regardless of whether or not the plaintiff can be deemed to have acquired the land for the newly constructed house and commercial building, is excluded from the input tax amount to be supplied to the members of the association under Article 104-7 (3) of the former Restriction of Special Taxation Act, and therefore, it can not be said

If so, the plaintiff's claim of this case shall be dismissed due to the lack of reason, and the judgment of the court of first instance is just in conclusion, and the plaintiff's appeal is dismissed as it is without merit

Judges Kim Jong-chul (Presiding Judge)