Requirements for non-taxation of special surtax under Article 59-3 (1) 7 of the former Corporate Tax Act (amended by Act No. 3577 of Dec. 21, 1982)

The object of non-taxation of special surtax under Article 59-3 (1) 7 of the former Corporate Tax Act (amended by Act No. 3577 of Dec. 21, 1982) is the site and building of a factory operated for not less than two consecutive years retroactively from the date of transfer from among the business assets owned by the corporation, and the ownership of the site and building should be owned by the corporation for not less than two consecutive years retroactively from the date of transfer.

Article 59(1) of the former Corporate Tax Act

Supreme Court Decision 84Nu334 Delivered on November 27, 1984

Korea Coast Guard Corporation

Head of Ansan Tax Office

Seoul High Court Decision 83Gu533 delivered on January 27, 1984

The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal by the defendant litigant are examined.

According to the court below's decision, pursuant to Article 59-3 (1) 7 of the Corporate Tax Act (amended by Act No. 3577 of Dec. 21, 1982), which was enforced at the time of the occurrence of the taxation requirement of this case, the court below determined that the Plaintiff's transfer of the land and buildings for the purpose of transferring the factory for two or more consecutive years to the industrial complex for two or more consecutive years under the conditions as prescribed by the Presidential Decree is not subject to special surtax. The "factory which has been operated continuously for two or more years" referred to in this case should be presumed to be without the corporate tax (special surtax) if the Plaintiff transfers the land and buildings of the factory for the purpose of transferring the factory with the operation period of two or more years in the same place where the ownership period of the factory was less than two years in light of the purport of the system, the court below held that the Plaintiff's transfer of the factory to the industrial complex for two or more years after acquisition by the corporate tax on February 10, 197 and the industrial complex for two or more years.

However, since the object of non-taxation of special surtax under the above provision is the site and building of a factory operated for not less than two consecutive years retroactively from the date of transfer from among the business assets owned by the corporation, the ownership of the site and building should also be held by the corporation for not less than two consecutive years retroactively from the date of transfer, and the above judgment of the court below is the case of the party members (see Supreme Court Decision 83Nu334 delivered on November 27, 1984). Accordingly, the above judgment of the court below has erred by misapprehending the above provisions of the Corporate Tax Act, and there is

Therefore, the judgment of the court below is reversed, and the case is remanded to the Seoul High Court. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices O Sung-sung(Presiding Justice)