Where a replotting disposition land is transferred, the area to be the basis for calculating the acquisition value (=area of the previous land)

When a replotting disposition is transferred, the acquisition value shall not be calculated according to the area of the previous land, but it shall not be calculated by the area of the land scheduled for replotting or by the area of the land determined for replotting.

Articles 23 and 45 of the Income Tax Act, Article 16 (1) of the Enforcement Rule of the Income Tax Act

Mac-year

the director of the tax office

Seoul High Court Decision 89Gu8158 delivered on May 1, 1990

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

Article 16 (1) of the Enforcement Rule of the Income Tax Act provides that in the calculation of the transfer difference in cases where the actual transaction price is unclear, the calculation of the case of transferring the land in the substitute land zone under the Land Rearrangement Projects Act or the Rural Modernization Promotion Act shall be based on the formula of the land substitution (the usual price at the time of the transfer) - (the usual price at the time of the acquisition of the previous land x the usual price at the time of the acquisition of the land + other necessary expenses). Thus, in the case of transferring the land subject to a replotting disposition such as this case, the calculation of the acquisition price shall not be made by the area of the previous land, but by the area of the land scheduled for replotting (the area of the

The land and buildings acquired before December 31, 1974 under the former Income Tax Act and the Addenda of the same Enforcement Decree shall be deemed to have been acquired on January 1, 1975, and the acquisition value of the assets acquired before December 31, 1974 shall be determined by the current market price (if the market price cannot be determined, the current market price as of January 1, 1975) at the current market price as of January 1, 1975, and there is no reason to regard the previous land area as the land area for replotting (delivery) as the land area as of January 1, 1975. The argument is groundless.

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 Park Yong-dong (Presiding Justice)