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(영문) 쟁점배당금을 익금불산입 배제대상으로 보아 과세한 처분의 당부
조세심판원 조세심판 | 2014-08-26 | 조심2014서0337 | 법인
[Case Number]

[Case Number] Trial 2014,037 (Law No. 26, 2014)

[Items]

[P] Corporation [Type of Decision]

[Summary of Decision]

[Decision] In light of the fact that the provision excluding the exclusion from the inclusion of the dividends in dispute was deleted at the time of the amendment of the law on December 26, 2008, but this provision applies to the first dividends received after 2009, and its affiliated company is not limited to the large enterprise group publicly notified by the Fair Trade Commission, there is no error of taxation by deeming the corporation’s dividends received before 2008 to be excluded from the exclusion of the dividends of the requesting corporation

[Related Acts]

[Related Acts and subordinate statutes] Article 18-2 of Corporate Tax Act / Article 18-3 of Corporate Tax Act

【Reference Decision】

[Reference Decision] Trial Decision 2013Sgd. 0373

【Disposition】

The appeal is dismissed.

【Reasoning】

1. Summary of disposition;

(a)the respondent has received dividends of the OO and the OO for the business year 2008 (hereinafter referred to as "contribut dividends") from a stock company (hereinafter referred to as "OO") holding 100% of its shares as a corporation operating textile manufacturing, etc. in the OO after opening of the OO and operating the fiber manufacturing, etc., and filed a corporate tax return after receiving dividends of the OO for the business year 2007;

B. Pursuant to Article 18-3(1)4 of the Corporate Tax Act, the commissioner of the regional tax office (hereinafter referred to as the “director of the regional tax office”) calculated the amount of income dividends excluded from taxable income, and notified the disposition agency of the taxation data deemed excluded from taxable income of the dividends, subject to exclusion from taxable income of the dividends. Accordingly, the disposition agency corrected and notified OOO for the business year 2007, OOO for the business year 2008, OOO for the business year 2008, and OOO for the aggregate.

C. The claimant filed an objection against this and filed an OO appeal.

2. Opinion of the requesting corporation and the disposition agency;

A. The claimant corporation's assertion

(1) If a corporation imposes a tax again on the dividend for the remaining profit after paying corporate tax on the profit accrued during the same year, the same cause double taxation problem on the same income. Therefore, if a shareholder is an individual, the double taxation adjustment through the law firm and the shareholder adjusts double taxation through non-taxation in the case of a corporation, and in the case of an OO, there is no deduction or exemption tax at all at the time of filing corporate tax return for the business year 2007 and 2008;

The issue dividend is, if the OO excludes the non-inclusion of income from which tax was paid through a corporate tax return, it will be subject to double taxation by again imposing corporate tax on the dividends at issue, and the tax law revision in 2009, which was revised in 2009, to exclude the income dividends at the time of re-investment by an affiliated company from the non-taxation of the income dividends, which is in conflict with the original purpose of the double taxation adjustment, so

(2) In the application of the text of the issue question, an affiliated company refers to an affiliated company under the Monopoly Regulation and Fair Trade Act (hereinafter “Fair Trade Act”), and Article 2 subparag. 3 of the Fair Trade Act provides that two or more affiliated companies are affiliated companies if they belong to the same enterprise group.

Therefore, in order to meet the requirements of affiliated companies, a company is affiliated with the same business group under the Fair Trade Act. A business group is referred to as a business group subject to the limitations on debt guarantee, a business group subject to the Fair Trade Act is referred to as a business group subject to the limitations on debt guarantee, and a business group subject to the limitations on debt guarantee is designated as a business group subject to the main sentence of Article 10-2(1) of the Monopoly Regulation and Fair Trade Act

In accordance with Article 14-5 of the Fair Trade Act, the Fair Trade Commission requires the disclosure of information on the current status, etc. of a business group subject to limitations on mutual investment, and according to the current status of a business group subject to limitations on mutual investment disclosed by the Fair Trade Commission, it is unfair to impose this case imposed by calculating the exclusion amount of re-investment in accordance with the main text of the issues in light of the fact that there is no business group belonging to the requesting corporation, the OO or the corporation invested by OO.

(b) Opinions of disposition agencies;

(1) The system was introduced to adjust double taxation among corporations, but in the case of a general corporation, the amendment was made to exclude the exclusion from the exclusion from the exclusion from the exclusion from the exclusion from the exclusion from the exclusion from the income of the income of the income dividends if the subsidiary re-investeds to another affiliate with an aim to curb the vertical expansion through the chain investment between affiliated companies on December 31, 2005. This provision was amended on December 26, 2008 and applied from the portion received after January 1, 2009 to abolish regulations that are not related to the original purpose of the introduction of the system. As such, the issues dividends paid for the business year 2007,208 were applied to the dividends that were paid for the purpose of the amendment prior to the amendment by Act No. 9267 of Dec. 26, 2008 are consistent with the purpose of legislation to restrain the vertical expansion through the chain investment between affiliated companies for political purposes.

(2) "Affiliates" in Article 2 of the Fair Trade Act and Article 3 of the Enforcement Decree of the same Act mean two or more companies which belong to the same enterprise group and are in a substantial control and support relationship with respect to the capital or management of the company, and where two or more companies belong to the same enterprise group, they are defined as affiliates of the others;

OO which paid dividends is 100% shareholder of the claimant corporation, and the shareholder of the claimant corporation consists of 100% penalty with the OO, and the shareholder of the corporation re-invested by the OO is confirmed as a business group with substantial parent-subsidiary relationship, such as that the OO and its siblings and its affiliated companies (corporation) form shareholder;

A business group subject to a restriction on mutual investment refers to a part of a business group separately designated to restrict mutual investment among the business groups prescribed by the Fair Trade Act, and in applying the provisions of the Corporate Tax Act, the "affiliated company" is sufficient if it falls under an affiliate company prescribed by the Fair Trade Act, and it is difficult

Although there is no separate provision on investment amount for a general company under the Fair Trade Act, excluding exclusion from taxable income in the case of re-investment of an affiliated company under the Corporate Tax Act is not always giving double taxation adjustment benefits to the dividend income received from an affiliated company in order to restrain a vertical expansion through chain investment between affiliated companies, and it is not always excluding the exclusion from taxable income of the dividend income only for the mutual investment relationship regulated by the Fair Trade Act.

3. Hearing and determination

A. Key issue

(1) Whether a disposition excluding an application of import dividends from taxable income constitutes double taxation on issues dividends.

(2) Whether the requested corporation and the corporation that has invested or re-invested in the requested corporation fall under an affiliate company of Article 18-3 of the Corporate Tax Act.

(b) Relevant Acts and subordinate statutes: To enter in the attached Form;

C. Facts and determination

(1) According to the review data presented by the agency, the investment and shareholders status of the claimant corporation and the OO are as follows:

(2) Upon examining the integrated national tax computer network, the list of affiliated companies related to the claimant corporation is as follows.

Table 2 List of affiliated companies

(3) In 2007 and 2008, the applicant corporation submitted the current status of the enterprise group subject to limitations on cross shareholding as disclosed by the Fair Trade Commission. The applicant corporation, theOO, and the related corporations do not appear in the current status of the designation of the enterprise group subject to limitations on cross shareholding.

(4) In full view of the above facts and relevant laws and regulations, first of all, the issues ①; the issue question question question question question question question question question question question question question question question question question question question case case where another domestic corporation (limited to a case where it is an affiliated company of the relevant domestic corporation) that paid dividends to the relevant domestic corporation out of the dividend income received from another domestic corporation that made an equity investment in an affiliated company should be calculated for the inclusion of gross income by applying mutatis mutandis the provisions of Article 18-2(1)4 of the Corporate Tax Act; and the issue question question issue issue question case case is abolished by the amendment of the Act on December 26, 2008, Article 1 of the Addenda of this Act provides that "this Act shall enter into force from January 1, 2009 (the short sentence omitted)" and Article 4 provides that "the amended provisions of Article 18-3(1) of the Corporate Tax Act shall be applied from the first dividend amount received after January 1, 2009 to the taxation disposition of double taxation case, etc. 301.

(5) Next, in the main text, the "affiliated company" refers to "affiliated company" as defined in Article 2 of the Fair Trade Act. The "affiliated company" is not limited to a large enterprise group publicly notified by the Fair Trade Commission (which refers to the same "affiliated company"), and the "affiliated company" under Article 2 of the Fair Trade Act and Article 3 of the Enforcement Decree of the same Act refers to two or more companies belonging to the same enterprise group and are in a substantial control and subsidiary relationship with respect to the capital or management of the company, and if two or more companies belong to the same enterprise group, they are defined as affiliates of the other party, and the "OO" holds 100% of the shares of the claimant company. The shareholders of the claimant company hold 100% of the shares of the OO and their affiliates, and the shareholders of the corporation re-invested by the OO do not constitute an unlawful taxation relationship with the OO-subsidiary company as they do not belong to the claim-subsidiary company and its affiliates.

4. Conclusion

This case shall be decided as ordered in accordance with Articles 81 and 65 (1) 2 of the Framework Act on National Taxes because the petition for adjudication has no merit as a result of the review.

The attached Form shall be attached thereto.

Relevant Acts and subordinate statutes

(1) Corporate Tax Act (amended by Act No. 9267 of Dec. 26, 2008)

(1) Where the sum computed pursuant to subparagraphs 1 and 2 exceeds the sum computed pursuant to subparagraphs 3 and 4 in calculating the income amount for each business year, in cases where the sum computed pursuant to subparagraphs 1 and 2 exceeds the sum computed pursuant to subparagraphs 3 and 4, of profit dividends or surplus distributions, or the constructive amount of profit dividends or distribution under Article 16 (hereafter in this Article and Article 18-3, referred to as the "amount of profit dividends") received by a holding company prescribed by the Presidential Decree (including a financial holding company under the Financial Holding Companies Act; hereafter in this Article, referred to as the "holding company") from among domestic corporations that hold companies under the Monopoly Regulation and Fair Trade Act, from its subsidiary companies (referring to a domestic corporation that has invested in the holding company concerned, and that satisfies the requirements prescribed by the Presidential Decree in consideration of the equity investment ratio, etc. in its subsidiary companies;

4. The amount computed by multiplying the dividend amount received from the subsidiary by the ratio prescribed by Presidential Decree considering the amount invested by the corresponding subsidiary in an affiliate company in cases where the subsidiary has invested in an affiliate company under the Monopoly Regulation and Fair Trade Act (hereafter referred to as an "affiliated company" in this subparagraph and Article 18-3): Provided, That cases falling under any of the following items shall be excluded:

(a) Where a subsidiary under subparagraph 1-3 of Article 2 of the Monopoly Regulation and Fair Trade Act has invested in a business-related sub-subsidiary designated by the Fair Trade Commission;

(b) Where a subsidiary under Article 2 (1) 2 of the Financial Holding Companies Act has invested in a second-tier company under subparagraph 3 of the said paragraph;

(c) Where a subsidiary under Article 2 (1) 2 of the Financial Holding Companies Act falls under an institutional investor prescribed by Presidential Decree;

Article 18-3 [Non-Inclusion of Dividend Amount in Gross Income] (1) Where the sum computed under the provisions of subparagraphs 1 and 2 exceeds the sum computed under the provisions of subparagraphs 3 and 4, of the dividend amount (excluding the dividend amount subject to the provisions of Article 18-2) that a domestic corporation (excluding a non-profit domestic corporation as defined in subparagraph 2 of Article 1; hereafter the same shall apply in this Article) receives from another domestic corporation in which the corresponding corporation has made an equity investment, such excess amount shall not be included

1. The amount computed by multiplying the dividend amount received from an invested domestic corporation by 50/100 where an investing domestic corporation has invested in excess of 50/100 (30/100 in case of stock-listed or KOSDAQ-listed corporations) of the total number of issued stocks or equity investment shares of such invested domestic corporation: Provided, That the total number of issued stocks or the total amount of equity investment shares has been invested, it means the amount equivalent

2. The amount computed by multiplying the dividend amount received from an invested domestic corporation by 30/100 where the corresponding investing domestic corporation has invested at a ratio lower than that provided in subparagraph 1;

3. The amount calculated, as prescribed by the Presidential Decree by applying mutatis mutandis the provisions of Article 18-2 (1) 3 where any interest on borrowings has been paid by any domestic corporation in each business year.

4. Where another domestic corporation that has paid dividends to the relevant domestic corporation (limited to where it is an affiliated company of the relevant domestic corporation) has invested in an affiliate company, the amount calculated by applying mutatis mutandis Article 18-2 (1) 4 as prescribed by Presidential Decree.

(2) The provisions of paragraph (1) shall not apply to the dividend income falling under each subparagraph of Article 18-2 (2).

(3) In applying paragraphs (1) and (2), matters necessary for the calculation method of investment ratio, calculation of gross income, submission of a detailed statement of dividend income, etc. shall be prescribed by Presidential Decree.

(2) Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 21302 of Feb. 4, 2009)

(1) In the application of the provisions of Article 18-3 (1) 1 and 2 of the Act, the ratio of investments made by a domestic corporation to another domestic corporation shall be calculated on the basis of stocks, etc. continuously held for not less than three months as of the basic date of dividend of the invested domestic corporation. In this case, in the calculation of the number of stocks, etc. in possession, if part of the stocks, etc. in the same category are transferred, the stocks, etc

(2) In applying the provisions of Article 18-3 (1) 3 of the Act, the borrowings and interest thereon shall not include the amounts excluded from losses pursuant to the provisions of Article 55.

(3) The term “amount computed pursuant to the provisions of the Presidential Decree” in Article 18-3 (1) 4 of the Act shall mean the amount computed by multiplying interest on borrowings by the ratio of the sum of amounts falling under subparagraphs 1 through 4 to the amount falling under subparagraph 4:

1. Total sum of book values of stocks, etc. of another domestic corporation that is subject to the main sentence of Article 18-3 (1) 1 of the Act ¡¿ 50/100;

2. 10/100 ¡¿ (total sum of book values of stocks, etc. of another domestic corporation that is subject to the proviso of Article 18-3 (1) 1 of the Act);

3. 30/100 ¡¿ (total sum of book values of stocks, etc. of another domestic corporation that is subject to the provisions of Article 18-3 (1) 2 of the Act);

4. Total assets on the balance sheet as of the last day of the corresponding domestic corporation;

(4) The term "amount that is calculated as prescribed by Presidential Decree" in Article 18-3 (1) 4 of the Act means the amount calculated by multiplying the dividend amount received from another domestic corporation (hereafter referred to as "dividend payment corporation" in this Article) that has invested in an affiliate by the ratio provided for in subparagraph 1 and the ratio provided for in subparagraph 2:

1. Where the ratio of investments made by a domestic corporation in a dividend payment corporation falls under the main sentence of Article 18-3 (1) 1 of the Act, 50/100, where it falls under the proviso to the same subparagraph, 100/100 and where it falls under Article 18-3 (1) 2 of the Act, 30/100. In such cases, where there are two or more dividend payment corporations, the ratio shall be that corresponding to each dividend payment corporation;

2. The ratio of the book value of stocks, etc. acquired by investing in an affiliate of the relevant dividend payment corporation in the amount invested by the relevant dividend payment corporation in the domestic corporation (referring to the book value of stocks, etc. acquired by the domestic corporation by investing in the dividend payment corporation). In this case, if the ratio exceeds 100/100, such ratio shall be deemed 100/100

(5) The value of stocks, etc., total assets and the value of stocks, etc. of another domestic corporation under paragraph (3) 1 through 4 shall be computed by drop number, and where there exists the amount falling under Article 18-3 (1) 4 of the Act, the ratio under paragraph (3) 1 through 3 shall be the ratio occupied by the amount falling under Article 18-3 (1) 1 and 2 of the Act minus the amount falling under subparagraph 4 of the same paragraph from the total amount of dividend income received from the relevant dividend payment corporation.

(6) A corporation that intends to be subjected to Article 18-3 (1) of the Act shall submit to the chief of the tax office having jurisdiction over the place of tax payment a specification of dividend amounts as prescribed by the Ordinance of the Ministry of Finance

(3) Monopoly Regulation and Fair Trade Act

Article 2 [Definitions] The definitions of terms used in this Act shall be as follows:

1-2. The term "holding company" means a company which makes controlling any domestic company's business through the ownership of stocks (including equities; hereinafter the same shall apply) as its main business and whose total assets are above an amount determined by Presidential Decree. In such cases, the standards for main business shall be determined by Presidential Decree;

1-3. The term "subsidiary" means a domestic company the business of which is controlled by the holding company under the standards prescribed by Presidential Decree;

1-4. The term “business related sub-subsidiary” means a domestic company the business of which is controlled by its subsidiary and its business contents are closely related to the relevant subsidiary as prescribed by the Presidential Decree;

2. The term "enterprise group" means a group of companies the businesses of which is substantially controlled by the same person according to the following distinction pursuant to the standards prescribed by Presidential Decree:

(a) A group of the same person and one or more companies controlled by the same person, where the same person is a company;

(b) A group of two or more companies controlled by the same person, other than the companies;

3. The term "affiliated company" means that where two or more companies belong to the same enterprise group, each company is called as an affiliated company of the others;

Article 9 (Prohibition, etc. of Mutual Contribution) (1) Any company belonging to an enterprise group designated under Article 14 (1) (hereinafter referred to as an "enterprise group subject to the limitations on mutual investment") because it falls under the criteria prescribed by Presidential Decree, such as total assets, etc. of a certain scale or larger, shall not acquire or own stocks of an affiliated company which acquires or owns its stocks: Provided, That this shall not apply to cases falling

Article 10-2 (Prohibition of Debt Guarantee for Affiliated Company) (1) Any company (excluding any company operating financial business or insurance business; hereinafter the same shall apply) belonging to an enterprise group designated under Article 14 (1) (hereinafter referred to as an "enterprise group subject to the limitations on debt guarantee") which falls under the criteria prescribed by Presidential Decree, such as total assets in excess of a certain size, etc. shall not provide debt guarantee for domestic affiliated companies: Provided, That the same shall not apply to a debt guarantee falling

1. Any guarantee made in connection with the obligations of the company acquired in accordance with the standards for rationalization under the Restriction of Special Taxation Act;

2. Deleted;

3. Where it is necessary to strengthen the international competitiveness of enterprises, or where it is prescribed by the Presidential Decree, a guarantee for obligations.

Article 14 (Designation of Enterprise Group Subject to Limitations on Mutual Investment, etc.) (1) The Fair Trade Commission shall designate an enterprise group subject to limitations on mutual investment, an enterprise group subject to limitations on mutual investment and an enterprise group subject to limitations on mutual investment (hereinafter referred to as "enterprise group

Article 14-5 (Disclosure of Information on Current Status, etc. of Enterprise Group subject to Limitations on Mutual Investment) (1) The Fair Trade Commission may disclose the following information about a company belonging to an enterprise group subject to limitations on mutual investment in order to prevent excessive concentration of

1. Information prescribed by Presidential Decree, such as general conditions, governance status, etc. of companies belonging to enterprise groups subject to limitations on mutual investment;

2. Information prescribed by Presidential Decree concerning investments, debt guarantees, transactions, etc. between companies belonging to an enterprise group subject to limitations on mutual investment or between a member company and its related parties;

(4) Enforcement Decree of the Monopoly Regulation and Fair Trade Act

The term "company which actually controls the details of its business according to the standards prescribed by Presidential Decree" in subparagraph 2 of Article 3 means a company falling under any of the following subparagraphs:

1. A company in which the same person holds independently or in concert with another person (hereinafter referred to as an "person related to the same person") falling under any of the following items not less than 30/100 of the total number of stocks issued by the relevant company (excluding non-voting stocks under Article 370 of the Commercial Act; hereafter the same shall apply in this Article, Articles 3-2, 17-5, 17-8, and 18), and which falls under the largest investor of the relevant company:

(a) A spouse, a blood relative within the eighth degree or a relative within a fourth degree (hereinafter referred to as the "relative");

(b) A non-profit corporation or organization (referring to an unincorporated association or foundation; hereinafter the same shall apply) to which the same person makes independently or in concert with the interested person not less than 30/100 of contributions as the largest contributor or which either the same person or the interested person has established;

(c) A nonprofit corporation or organization in which the same person exercises dominant influence over the composition of executives or business operations, etc. directly or through persons related to the same person;

(d) A company the businesses of which are substantially controlled by the same person as provided in this subparagraph or subparagraph 2; and

(e) Employees of the same person and persons falling under the relationship under items (b) through (d) (referring to executives in cases of a corporation, and commercial employees and employees by an employment contract in cases of an individual);

2. A company falling under any of the following items and being regarded as exercising controlling influences upon the management of the company concerned:

(a) A company of which the representative director is appointed or dismissed, or of which not less than fifty percent of directors or officers are or can be appointed by contracts or agreements between the same person and other major stockholders;

(b) A company in which the same person exercises dominant influence over major decision-making or business execution, such as organizational change of the company concerned or investments in new business, directly or through the person related to the same person;

(c) A company which has personnel exchanges falling under any of the following items between the relevant company and the company under the control of the same person (including the same person where the same person is a company; hereafter the same shall apply in this item):

(a) Where an officer concurrently holds office between the company under the control of the same person and the company concerned;

(b) Where an executive or employee of a company under the control of the same person is appointed as an executive officer of the relevant company and is reinstated to a company under the control of the same person (including where the same person is a company under the control of the same person and

(c) the officer of the company in question has been appointed as an officer or employee of the company under the control of the same person, and is reinstated to the company in question or its affiliate;

(d) A company which is engaged in transactions with the same person or persons related to the same person in excess of the ordinary scope, or is provided with a debt guarantee or being provided with a debt guarantee, or other company which is recognized as an economic identical person by social norms, such as making business indications recognized as an affiliate of an enterprise group of the same person;

Article 17 (Scope of Enterprise Group Subject to Limitations on Mutual Investment) (1) The aggregate amount of total assets on the balance sheet of the business year immediately preceding the designation of an enterprise group subject to limitations on mutual investment by domestic companies which belong to the relevant enterprise group shall be in excess of 2 trillion won in total: Provided, That an enterprise group subject to limitations on mutual investment falling under any of the following subparagraphs shall be excluded herefrom:

1. A conglomerate engaging in financial or insurance business only;

2. An enterprise group in which the company operating the financial business or insurance business is the same person as prescribed by subparagraph 2 of Article 2 of the Act;

3. Deleted.

4. Deleted.

5. An enterprise group in which the sum of total assets of the companies falling under any of the following items among those that belong to the relevant enterprise group is not less than 50/100 of total assets of the whole enterprise group: Provided, That an enterprise group in which the sum of total assets of the companies except for the companies falling under any of the following items is not less

(a) A company for which a commencement of rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act has been decided and such procedures are in progress;

(b) A company for which the commencement of management procedures under any of Article 12 (1) 1 through 3 of the Corporate Restructuring Promotion Act (Act No. 6504) has been decided and such procedures are in progress.

(2) "Enterprise group which meets the criteria prescribed by Presidential Decree" in Article 10 (8) of the Act means an enterprise group falling under any of the following subparagraphs:

1. An enterprise group falling under paragraph (1) 1 or 2;

2. An enterprise group in which total sum of total assets of the companies falling under paragraph (1) 5 (a) or (b) from among those belonging to the enterprise group concerned is not less than 50/100 of total assets of the whole enterprise group: Provided, That an enterprise group in which total sum of total assets of the companies except for those falling under paragraph (1) 5 (a)

3. Deleted;

4. An enterprise group in which the ratio computed by deducting the shareholding ratio of the same person and relatives of the same person from the shareholding ratio of the same person and persons related to the same person computed under the provisions of paragraphs (3) and (4) is not more than 25/100, and the shareholding ratio of the resolution of the same person and persons related to the same person is not more than three times the shareholding ratio of the same person and

5. An enterprise group in which the number of affiliated companies belonging to the enterprise group under the main sentence of Article 10 (1) of the Act is not more than five and not more than two-stage investments (referring to the cases where a company belonging to the enterprise group acquires and owns the stocks of another affiliated company, and such other affiliated company acquires and owns the stocks of another affiliated company) are made among the companies belonging to the enterprise group.

(3) The shareholding ratio of the same person and relatives of the same person under the provisions of subparagraph 4 of paragraph (2) shall be calculated by summing up the equity ratio [referring to the share ratio of stocks held by the same person and relatives of the same person in the total capital or capital of each affiliated company (excluding non-voting stocks under Articles 369 and 370 of the Commercial Act; hereafter the same shall apply in this Article] of the stocks held by the same person and relatives of the same person for each affiliated company by the larger amount of the total capital or capital of each affiliated company, and then dividing it by the total capital or capital of each affiliated company.

Article 21 (Designation of Enterprise Group, etc. subject to the limitations on mutual investment) (1) Where an enterprise group which meets the criteria under Article 17 (Scope of Enterprise Group, etc. subject to the limitations on mutual investment has been designated by the Fair Trade Commission until April 1 (or April 15, in unavoidable cases) each year under Article 14 (1) of the Act, or where an enterprise group which has been designated as an enterprise group subject to the limitations on mutual investment fails to meet such criteria,

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