The meaning of acquisition value for calculating gains on transfer of land acquired by a corporate merger;

In calculating the special surtax on gains from the transfer of land acquired by a merger at the time of enforcement of the former Corporate Tax Act (Act No. 2931, Dec. 22, 1976), the acquisition value which forms the basis for such calculation shall be the initial acquisition value of the corporation prior to the merger, and where the value is unclear, it shall be based on the current base value at

Article 59 of the former Corporate Tax Act

Korea Fisheries Development Corporation, Inc., Counsel for the defendant-appellant

The new records of the litigation performer, the second instance;

Seoul High Court Decision 78Gu623 delivered on December 18, 1970

The part of the lower judgment against the Defendant is reversed, and that part of the case is remanded to the Seoul High Court.

The grounds of appeal are examined.

According to the reasoning of the judgment of the court below, the court below acknowledged that the plaintiff entered into a merger contract with the non-party Dongdong Industrial Co., Ltd. to take over all the rights and obligations of the non-party company as of October 27, 1975 based on the balance sheet and inventory as of June 30, 1975 and acquired the property of the non-party company according to the book price, and transferred the land of this case to 397,64,000 won among them. The above non-party Co., Ltd. acquired the land of this case on June 30, 1970 and August 10, 1971 and revaluated 86,66,000 won on November 30, 1972 and revaluated again 203,640,000 won on Oct. 31, 1972 and then revaluated the special surtax on the land of this case as of the acquisition price at the time of the transfer price of this case to be unlawful.

However, according to Article 59(1) and (3) of the Corporate Tax Act (Law No. 1931, Dec. 22, 1976) enforced at the time of the transfer, the difference in the transfer value of land which is the tax base of special surtax shall be the amount obtained by subtracting the acquisition value and the expenses as determined by the Presidential Decree from the transfer value, and where the transfer value and the acquisition value are unclear, the transfer value and the acquisition value shall be the amount based on the amount based on the current base value at the time of the transfer as determined by the Presidential Decree at the time of the transfer and the amount based on the current base value at the time of the acquisition shall be the transfer value and the transfer value at the time of the acquisition. According to the proviso of Article 59(2) of the same Act, it can be known that the transfer value shall not be deemed a transfer where the ownership is transferred due to a corporate merger or

Therefore, the court below's determination that the acquisition value, which is the basis for calculating the special surtax of this case, is unlawful by deeming the tax amount exceeding the calculated tax amount, as the book value based on the revaluation of the land at the time of the merger of the plaintiff corporation, was unlawful. It is reasonable to discuss this issue since it did not err by misapprehending the legal principles of the special surtax, or by failing to exhaust all necessary deliberations.

Therefore, in order to reverse the part of the original judgment against the defendant and to make a new trial and determination, it is so decided as per Disposition by the assent of all participating judges in the Seoul High Court.

Justices Kim Jung-young (Presiding Justice)