Defendant

A Imprisonment with prison labor for two years and fines for 825,00,000 won, and Defendant B shall be punished by fines for 20,000,000 won, respectively.

Punishment of the crime

Defendant

A is the representative director of corporation B, and Defendant B is a corporation with the purpose of steel export and import business.

1. Defendant A, even though there was no receipt of purchase tax invoices or no actual purchase of goods, was committed with intent to evade corporate tax by means of false bookkeeping, etc. as if B purchased goods from a Chinese purchaser.

On December 1, 2008, the Defendant: (a) falsely stated the “import-related product payment” to the head of the product account book as if he purchased the goods amounting to KRW 800 million from E (China Purchase Office); (b) subsequently, deposited the goods into the account book in the name of the company bank account (Account Number G) and used for private use; (c) December 2, 2008; (d) KRW 1 billion on December 3, 2008; and (d) KRW 3.3 billion on December 4, 2008; and (d) on March 31, 2009; and (e) filed a report on the tax base and amount of corporate tax in March 208, 2008; and (e) evaded the corporate tax amount of KRW 3.3 billion on December 3, 2008; and (e) filed a false report on the profit and loss statement for a stock company with the income statement added to the corporate tax amount of KRW 3.3.3.3 billion.

Accordingly, the Defendant, by making a false statement of account director and income statement, has evaded taxes by making illegal acts using a borrowed account.

B. On January 31, 2009, the Defendant violated the Punishment of Tax Evaders Act: (a) by making a false entry of KRW 4 million in traveling expenses, transportation expenses, and transportation expenses processed into the president of the account division of travel expenses, and using them for private purposes, etc. at a time D on January 31, 2009; (b) by making a false entry of KRW 57 million in total, from January 31, 2009 to December 31, 2009, into the president of the account division; (c) making a false entry of KRW 12 million in total; and (d) filing a report on the tax base and tax amount of corporate tax in March 2009 on March 31, 2010; and (e) adding false income statement of KRW 57 million to travel expenses, transportation expenses, and transportation expenses, as above.