Requirements for determining comprehensive income tax on business operators;

In order to investigate and determine the comprehensive income tax on the business operator, only the reason that the business operator failed to submit books or documentary evidence at the time of the final return on tax base is insufficient, and even if it is based on the data after requesting the submission of documentary evidence as above, it is difficult to determine the amount of tax for calculating the total amount of business income and the amount of business income even if it is possible to determine the amount of tax for the said data after

Article 120 of the Income Tax Act

Plaintiff

head of Sung Dong Tax Office

Seoul High Court Decision 85Gu475 delivered on February 11, 1986

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

According to the judgment of the court below, although the defendant calculated the total operating profit amount in 1983 and its corresponding business income amount in the estimation method with respect to the plaintiff who runs the business of selling, repairing, and leasing the power generator with the non-party 1 and the non-party 2 as the partnership business, the disposition of this case based on the estimation investigation decision is illegal, since there is no sufficient evidence to acknowledge the existence of estimation reason, validity and rationality of estimation method, even if it is based on the defendant's prior proof.

According to the records, in making the final return on the tax base of income tax for the corresponding year under Article 100 (4) 4 of the Income Tax Act, the defendant did not attach the balance sheet, the income statement, the balance sheet, and the attached documents in accordance with the corporate accounting standards in making the final return on the tax base of income tax for the corresponding year. As such, the defendant recognized the plaintiff as not having any record-keeping book and documentary evidence and did not request the plaintiff to present the account book and documentary evidence, and promptly caused the disposition of this case by the estimation investigation decision without requesting the plaintiff to present the account book and documentary evidence. However, in order to determine the plaintiff's comprehensive income tax, the defendant's failure to present all documentary evidence to the plaintiff at the time of the above final return on the tax base is insufficient, and even if it is based on the new material, it can only be decided on the estimation investigation when the plaintiff cannot determine the amount of tax based on the calculation of the total business income and business income. Therefore, from this point of view, the court below's revocation of the disposition of this case is justified and without merit.

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.

Justices Choi Jae-ho (Presiding Justice)