Large-scale Transport Limited Partnership (Attorney Han-soo et al., Counsel for the defendant-appellant)

The Director of Incheon Tax Office

November 5, 1981

The disposition of imposition of value-added tax of KRW 2,210,148 on August 25, 1980 by the defendant against the plaintiff on August 25, 1980 shall be revoked.

Litigation costs shall be borne by the defendant.

The same shall apply to the order.

No. 1 (Tax Notice), No. 3 (Notice of Decision), No. 5-1, No. 2 (Notice of Decision and Decision), and No. 1 of No. 2 (Correctional Decision) without dispute over establishment. The plaintiff was a corporation incorporated separately from the non-party 1 corporation on Dec. 28, 1979, which purchased 12 taxis from the above non-party 20,092,262 won on Jan. 1, 1981, and entered into the taxi transport business. The plaintiff corporation filed an application for registration of business under Article 5 of the Value-Added Tax Act with the defendant on Dec. 31, 1979, and issued a business registration certificate on Jan. 4, 1980. The plaintiff corporation did not recognize the purchase price of the above non-party 2 as the purchase price of the value-added tax at 20,000 won prior to the above tax base return on May 20, 1980, the plaintiff corporation did not receive the above tax base return on the 20.

As seen earlier, the Plaintiff asserted that the Plaintiff should deduct input tax because the Plaintiff purchased a taxi after filing an application for business registration with the Defendant as seen earlier. The Defendant asserted that the Plaintiff purchased a business registration certificate from the Defendant before the issuance of the business registration certificate.

According to the Value-Added Tax Act, a person who starts a new business shall register the new business with the Government within 20 days from the date of commencing the business (Article 5 (1) of the same Act). A person who intends to start a new business may register the business even before the commencement of the business (Article 5 (1) of the same Act), and a person who intends to register a new business shall state his/her personal information, etc. and submit a certified copy, etc. of corporate register to the head of the competent tax office in cases of a corporation. Upon receipt of an application, the head of the competent tax office shall state his/her personal information or necessary matters and issue a business registration certificate stating his/her registration number within seven days from the date of application (Article 5 (2) of the Enforcement Decree of the same Act, Article 7 (2) and (3) of the same Act). Since it is unclear whether the pre-registration standard after the date of application for registration or the date of issuance of registration certificate to the head of the competent tax office before the issuance of the above business registration certificate, he/she cannot issue the input tax invoice or registration certificate within seven days before the issuance of the above business.

Therefore, the plaintiff's claim of principal lawsuit is justified, and the lawsuit cost is assessed against the losing defendant. It is so decided as per Disposition.

November 26, 1981

Judges Park Jong-chul(Presiding Judge)