[1] In cases where the owner of a building and appurtenant land of a house are different, whether the owner of a building of a house can become a taxpayer of comprehensive real estate holding tax on housing even though he/she is not a taxpayer of comprehensive real estate holding tax on housing (affirmative)

[2] Requirements for establishing the liability to pay comprehensive real estate holding tax on housing in cases where a number of land annexed to housing is owned only

[1] Comprehensive real estate holding tax (amended by Act No. 9273 of Dec. 26, 2008), Article 7(1), Article 2 subparags. 3 and 5 of the former Comprehensive Real Estate Holding Tax Act, Article 180 subparag. 3 and Article 183(1) proviso of the former Local Tax Act (amended by Act No. 9774 of Jun. 9, 2009), Article 2 subparag. 1 of the former Housing Act (amended by Act No. 9366 of Jan. 30 of Jan. 309), as well as Article 2 subparag. 1 of the former Housing Act (amended by Act No. 9366 of Jan. 5, 2005), after classifying a building and appurtenant land to a house before restructuring of property tax and the introduction of comprehensive real estate holding tax, a person who owns only a building and appurtenant land to a house can be liable to pay property tax depending on the standard amount of the comprehensive real estate holding tax even if the owner of the building and appurtenant land.

[2] The liability to pay comprehensive real estate holding tax on housing is established when the aggregate amount of published prices of housing, which is subject to property tax in Korea, exceeds the standard amount of taxation. Therefore, in a case where a number of appurtenant land is owned, the liability to pay comprehensive real estate holding tax on housing is established when the aggregate amount of published prices of housing, which is subject to property tax in Korea, exceeds the standard amount of taxation, which is calculated proportionally by the proportion of the standard prices of the building and appurtenant land. Therefore,

[1] Article 2 subparags. 3 and 5, and Article 7(1) of the former Gross Real Estate Tax Act (amended by Act No. 9273 of Dec. 26, 2008), Article 180 subparag. 3 (see current Article 104 subparag. 3) and Article 183(1) (see current Article 107(1)) of the former Local Tax Act, Article 2 subparag. 1 (see current Article 107(1) of the former Housing Act (amended by Act No. 9366 of Dec. 26, 2008) / [2] Article 7(1) of the former Gross Real Estate Tax Act (amended by Act No. 9273 of Dec. 26, 2008)

[1] Supreme Court Decision 2010Du23910 Decided June 28, 2012

Plaintiff (Law Firm Shin, Attorneys Kim-nam et al., Counsel for the plaintiff-appellant)

Head of the tax office

Seoul High Court Decision 2011Nu414 decided October 12, 2011

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

The grounds of appeal are examined.

1. Article 7(1) of the former Gross Real Estate Tax Act (amended by Act No. 9273, Dec. 26, 2008; hereinafter the same) provides that “any person liable to pay property tax on housing who is in the Republic of Korea and exceeds 600 million won a taxation-based standard amount.” Article 2 subparag. 3 of the former Gross Real Estate Tax Act, Article 180 subparag. 1 of the former Local Tax Act (amended by Act No. 9774, Jun. 9, 2009; hereinafter the same) provides that “the person liable to pay property tax on housing as of the taxation standard amount shall be the person liable to pay property tax on housing, and all or part of the building and land annexed to the housing which are the owner of the housing subject to the imposition of property tax and comprehensive real estate tax on housing shall be deemed to be the person liable to pay property tax on housing, and Article 81 subparag. 1 of the former Local Tax Act provides that “The statutory standard value of the housing concerned shall be deemed to be the owner.”

In addition to the language and text of these regulations, prior to the restructuring of property tax and the introduction of the comprehensive real estate holding tax on January 5, 2005, the owner of only the land annexed to the house has the liability to pay property tax on the house (see Supreme Court Decision 2010Du23910, Jun. 28, 2012). In full view of the following: (a) the owner of a house and the land annexed to the house are different owners; (b) even if the owner of the building and the land annexed thereto is not a taxpayer of the comprehensive real estate holding tax on the house, the owner of only the land annexed to the house can be a taxpayer of the comprehensive real estate holding tax on the house depending on whether the amount exceeds the standard amount of taxation. In addition, the liability to pay the comprehensive real estate holding tax on the house is established when the aggregate amount of published prices of the housing which are subject to property tax in Korea exceeds the standard amount of taxation; (c) in cases of a number of land annexed to the house, the liability to pay the comprehensive real estate holding tax on the housing exceeds the standard amount of taxation.

2. The lower court, citing the reasoning of the first instance judgment, acknowledged the facts as indicated in its reasoning, and determined that even if the Plaintiff did not own a house building and only owned the land annexed thereto, the total amount of the value of the land annexed, calculated in proportion to the standard market price of the building and the land annexed thereto exceeds 600 million won, and thus, the Plaintiff becomes a taxpayer of comprehensive real estate holding tax in 2008.

Such judgment of the court below is just in accordance with the above provisions and legal principles, and there is no error in the misapprehension of legal principles as to the taxation requirements of comprehensive real estate holding tax on housing against a person who owns only the land annexed to a house as

3. 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 on the bench.

Justices Lee In-bok (Presiding Justice)