Seoul Administrative Court 2009Guhap9468 ( July 23, 2009)

Where the standard rate of income is too low due to lack of books and evidence and the reported rate of income, the estimate shall be determined based on the reported income rate.

The book and documentary evidence of the publishing company operated by the plaintiff do not exist and the standard income ratio of the relevant type of business is too low compared to the return income ratio of the publishing company operated by the plaintiff, so it is reasonable and reasonable to estimate the amount of income according to the return ratio of the taxpayer himself/herself is to reflect the most true income.

The contents of the decision shall be the same as attached.

Article 143 (Estimated Decision and Revision)

1. The plaintiff's appeal is dismissed.

2. Costs of appeal shall be borne by the Plaintiff.

The judgment of the first instance shall be revoked. The part of the Defendant’s imposition of global income tax of KRW 1,494,510,176 against the Plaintiff on May 02, 2007 which exceeds KRW 308,443,298 shall be revoked.

1. Quotation of judgment of the first instance;

A. The reasoning for the court’s explanation concerning this case is as stated in the reasoning for the judgment of the court of first instance, with the exception of the following. B. The reasoning for the court’s explanation is as stated in Article 8(2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act.

B. Parts in height

Part 6 through 8 of the decision of the first instance court are as follows.

(E) The proviso of Article 143 (3) 2 of the former Enforcement Decree of the Income Tax Act is not limited to cases where the taxpayer is able to determine the amount of income according to the income ratio reported by him as one of the methods of estimating the amount of income. Therefore, if there are circumstances corresponding to the requirements prescribed in the proviso of the above Article and there are reasonable and reasonable grounds to reflect the actual amount of income near the truth, the taxpayer may be subject to estimated taxation based on the income ratio reported by himself. As seen above, there are no books and other documents related to the business income of the non-party publishing company operated by the plaintiff in 2001, and there is no significant difference between the return rate and the standard income ratio of the non-party publishing company in relation to the sales of the books in this case. In light of the above, there are circumstances corresponding to the requirements prescribed in the proviso of the above proviso, and it is reasonable and reasonable to estimate the amount of income for the business year above according to the income ratio of the second declaration, so it cannot be deemed that there is any error in the defendant's calculation method of income amount.

2. Conclusion

Therefore, the judgment of the court of first instance is just, and the plaintiff's appeal is dismissed, and it is so decided as per Disposition.