Where the tax-related Acts are amended disadvantageous to taxpayers and have transitional provisions to protect their rights or trust, the provisions of the law applicable thereto.

In a case where there is an amendment of tax-related Acts, the tax-related Acts at the time when the tax liability is established, among the Acts before and after the amendment, shall be natural in light of the principle of no payment in law. However, in a case where the tax-related Acts are revised disadvantageous to the taxpayer, where the former Acts are applied in order to protect the person liable for tax payment’s vested rights and trust, the former Acts should be applied.

Article 18 of the Framework Act on National Taxes, Article 242 of the former Local Tax Act (amended by Act No. 3488, Dec. 31, 1981); Articles 7 and 6 of the Addenda

[Defendant-Appellee] Defendant 1 and 3 others

Seoul District Court Decision 201Na1548 decided May 1, 201

Daegu High Court Decision 82Gu289 delivered on July 5, 1983

The judgment below is reversed, and the case is remanded to the Daegu High Court.

The Plaintiff’s attorney’s ground of appeal is examined.

1. According to the judgment below, the court below held that the non-party 2 corporation established the duty of tax reduction and exemption under Article 6 of the Addenda of the Local Tax Act (the plaintiff corporation was merged with the non-party 1 corporation as of July 28, 1982) by the evidence adopted. The non-party 1 corporation established the duty of tax reduction and exemption under Article 6 of the Local Tax Act, i.e., the non-party 2 corporation established the duty of tax reduction and exemption under Article 6 of the Addenda of the Local Tax Act, i.e., the non-party 2, the non-party 1 corporation established the duty of tax reduction and exemption under Article 6 of the Act, and the non-party 2, the non-party 4 corporation established the duty of tax reduction and exemption under Article 6 of the Local Tax Act, i.e., the non-party 2, the non-party 1 corporation established the duty of tax reduction and exemption under Article 6 of the revised Local Tax Act as of Sep. 13, 1979.

2. However, if there is an amendment of the tax-related Acts, the tax-related Acts at the time when the liability to pay taxes is established after the amendment shall be natural in light of the principle of no taxation, but if the tax-related Acts are amended disadvantageously to taxpayers, the former Act should be applied in cases where the former Act requires taxpayers to apply the former Acts favorable to their interests for the purpose of acquiring rights or protecting trust. Article 9(6) of the former Act on the Regulation of Tax Reduction and Exemption (amended by Act No. 2332, Dec. 9, 1971) provides that property for business owned within the development zone shall be exempted from property tax for five years from the date of its designation, and Article 6 of the Addenda of the former Local Tax Act (amended by Act No. 2945, Dec. 31, 1976) provides that the former Local Tax Act (amended by Act No. 1281, Dec. 16, 198) provides that the latter provisions shall be applied mutatis mutandis to the tax-related Acts (amended by Act No. 12948, Dec. 28, 19, 197).

Therefore, it is reasonable to point out this point, and the judgment of the court below cannot avoid reversal.

3. The judgment of the court below is reversed, and the case is remanded to the Daegu High Court which is the original court. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices O Sung-sung(Presiding Justice)