8 Whether it falls under the farmland at the time of transfer, which is the requirement for self-taxation reduction;

According to evidence, such as farmland ledger, this case's land is used for lease and does not constitute farmland at the time of transfer, and thus does not constitute reduction or exemption.

Article 69 of the Restriction of Special Taxation Act: Reduction or exemption of transfer income tax for self-farmland

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

The same shall apply to the order.

1. Details of the disposition;

A. On December 30, 2003, the Plaintiff acquired ownership on June 27, 1991, transferred ○○○○○○○○○-dong, ○○○○○○○○, ○○○, 2,351 square meters (hereinafter “instant land”) to the Korea National Housing Corporation, and filed an application for reduction of or exemption from capital gains tax on the ground that the said land falls under reduction of or exemption from self-arable farmland.

B. On February 1, 2005, the Defendant rendered the instant disposition imposing KRW 96,464,760 on the Plaintiff on the ground that the instant land does not fall under the reduction or exemption of self-arable farmland.

[Ground of recognition] Facts without dispute, Gap 1, 2 evidence, Eul 1 and 2 evidence, the purport of the whole pleadings

2. Whether the disposition is lawful;

A. The plaintiff's assertion

The instant disposition is unlawful on the following grounds.

(1) Since the purchase of the instant land on June 21, 191, the Plaintiff continued to grow and sell flowers, etc., and it should be viewed as farmland in light of the purport of Article 2 subparag. 1 (a) of the Farmland Act and Article 2(1)3 of the Enforcement Decree of the Farmland Act. The flowers and parking lots fall under farmland in accordance with Article 2 subparag. 1 (b) of the Farmland Act and Article 2 subparag. 1 (3) of the Enforcement Decree of the Farmland Act and Article 2(3)1 of the Enforcement Decree of the Restriction of Special Taxation Act, or are deemed as being included in farmland as facilities directly necessary for farmland management under Article 27 of the Enforcement Rule of the Restriction of Special Taxation Act. However, the instant disposition denied the Plaintiff’s own land for more than eight years on different premise.

(2) On May 20, 2004, the Plaintiff purchased farmland of 8,095 square meters located in the Gyeonggi-do, in writing, in the remaining sales price after reimbursing the debt among the sales price of the instant land. As such, income from the sale and purchase of the instant land falls under the income from substitute soil of farmland and is not subject to taxation even under Article 89 subparagraph 4 of the Income Tax Act.

(b) Related statutes;

/ Farmland Act

The definitions of terms used in this Act shall be as follows:

1. The term “farmland” means the land falling under any of the following items:

(a) The land actually used for the cultivation of the crops or perennial plants regardless of the legal category of the said land, whether paddy field, paddy field, orchard, orchard, or any other category of the said land (hereinafter referred to as the “land omitted”);

(b) Site for the facilities prescribed by Presidential Decree among the facilities for improving the land under item (a) (maintenance, water supply and drainage, waterway, farm roads, banks, and other facilities necessary for preserving or using farmland;

【Enforcement Decree of the Farmland Act

Article 2 (Scope of Farmland)

①「농지법」(이하 "법"이라 한다) 제2조 제1호 가목의 규정에 의한 다년성식물재배지는 다음 각 호의 이ㅓ느 하나에 해당하는 식물을 재배하는 토지로 한다.

3. Trees for landscaping or ornamental trees and their seedlings (excluding those planted for landscaping purposes);

(3) The term “facilities prescribed by the Presidential Decree” in subparagraph 1 (b) of Article 2 of the Act means facilities falling under each of the following subparagraphs, which are installed on the land used for the cultivation of crops or for the growth of perennial plants as referred to in each subparagraph

1. A greenhouse and its appurtenant facilities, which are fixed greenhouses, mushroom cultivation sheds, and greenhouses;

(1) The Income Tax Act (amended by Act No. 7837 of Dec. 31, 2005)

Article 89 (Non-Taxable Transfer Income Tax) No income tax shall be levied on any of the following incomes (hereinafter referred to as “transfer income tax”):

4. Income accruing from substituted land for farmland falling under such cases as prescribed by the Presidential Decree.

(1) Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 18705 of Feb. 19, 2005)

Article 153 (Non-taxation for Farmland)

(1) The term “cases as prescribed by the Presidential Decree” in subparagraph 2 of Article 89 of the Act means the case where the farmland falling under any one of the following subparagraphs (excluding the farmland falling under any subparagraph of paragraph (4) is exchanged, divided or combined, and the difference of the value of the land between both parties exchanged, divided or combined is 1/4 or less of the value of the land which has larger value (hereinafter

【Special Taxation Act (amended by Act No. 7003 of Dec. 30, 2003)

Article 69 (Abatement or Exemption of Transfer Income Tax for Self-Cultivating Farmland)

(1) With respect to the income accruing from a transfer of land as prescribed by the Presidential Decree, which is directly cultivated by the resident as prescribed by the Presidential Decree residing in the seat of the farmland for not less than eight years [not later than December 31, 2005, five years in case where the farmland in the agricultural promotion area under Article 32 of the Farmland Act is incorporated into the Korea Agricultural and Rural Infrastructure Corporation and Farmland Management Fund Act or a corporation prescribed by the Presidential Decree which makes the agriculture as his main business to the corporation (hereafter in this Article, referred to as the "agricultural corporation") under the same Act] continuously and which is prescribed by the Presidential Decree, and is subject to the agricultural income tax (including the objects of non-taxation, reduction and exemption and small collection), the tax amount equivalent to 100/100 of the transfer income tax shall be abated or exempted: Provided, That if the relevant land is incorporated into the residential area, commercial area and industrial area under the National Land Planning and Utilization Act (hereafter in this Article, referred to as the "residential area, etc."), or has been designated as the reserved land other than the farmland prior to

(1) Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 18176 of Dec. 30, 2003)

Article 66 (Abatement or Exemption of Transfer Income Tax for Self-Cultivating Farmland)

(3) For the purpose of the main sentence of Article 69 (1) of the Act, the term “land as prescribed by the Presidential Decree” means the farmland that has been cultivated by himself for not less than 8 years (5 years in case where it is transferred to the Korea Agricultural and Rural Infrastructure Corporation under the Korea Agricultural and Rural Infrastructure Corporation and Farmland Management Corporation Act or to the corporation under paragraph (2)) between the time of acquisition

(1) Enforcement Rule of the Restriction of Special Taxation Act (amended by Ordinance of the Ministry of Finance and Economy No. 478 of Dec. 31, 2005)

Article 27 (Scope, etc. of Farmland)

(1) The farmland pursuant to the provisions of Article 66 (3) of the Decree shall be the paddy and field land used for the real cultivation regardless of the land category on the public cadastral book, and shall include the farming shed, compost, pumping station, pumping station, branch office, concentration, waterway, etc. directly necessary for the management of the farmland.

C. Determination

(1) Whether the Plaintiff re-satisfed the instant land for more than eight years

The entries of Gap evidence Nos. 7 and 8-1, 2, and 9-1 through 3 are insufficient to deem that the plaintiff had self-deed the land of this case for not less than 8 years as farmland, and there is no other evidence to -, and in full view of the overall purport of the pleadings, the land of this case was leased on or around June 25, 1998 and was used as the site for the flower Sales Facility and the site attached to the sales facility installed with the residential facilities even at the time of the transfer of the land of this case on or around December 2003. Accordingly, according to these facts, it is reasonable to deem that the land of this case was not used as farmland for not less than 8 years since June 25, 1998.

Therefore, this part of the Plaintiff’s assertion on a different premise is without merit.

(2) Whether a substitute land for farmland constitutes a non-taxation subject to income tax

Since the fact that the land of this case was used as the land for flower sale place and the parking lot site, which is not farmland at the time of transfer on December 2003, 2003, the fact that it was used as farmland, this part of the Plaintiff’s assertion based on the premise that it was farmland at the time of transfer is farmland is without merit.

3. Conclusion

Therefore, the disposition of this case is legitimate, and the plaintiff's claim seeking revocation on the premise of its illegality is without merit, and it is dismissed. It is so decided as per Disposition.