Seocho 209west 3705 ( November 30, 2009)

Even if the ownership of real estate is transferred by compulsory auction, it shall be subject to capital gains tax.

Even where the ownership of real estate is transferred by a compulsory auction, it shall be applicable to assets subject to capital gains tax.

The contents of the decision shall be the same as attached.

1. The plaintiff's claim is dismissed.

2. The plaintiff shall bear the litigation costs.

The Defendant’s disposition of imposition of KRW 76,341,770 (including 23,256,610 on July 9, 2009) for the Plaintiff on July 9, 2009 is revoked.

1. Circumstances of the disposition;

A. On October 31, 2005, the title transfer registration procedure was completed on November 24, 2005 in the real estate auction procedure at Suwon District Court Decision 2005Mo10387, Suwon District Court, 2005, ○○○○-dong, ○○○-dong, ○○○-dong, ○○○○-dong, ○○○○-dong, ○○○○○ (hereinafter “instant land”).

B. On July 9, 2009, the Defendant rendered the instant disposition imposing the Plaintiff KRW 76,341,770 (including KRW 23,256,610 for filing a report and an erroneous return) of the transfer income tax for the year 2005, by deeming that the acquisition of real estate by the procedure for compulsory auction constitutes a transfer under Article 88(1) of the Income Tax Act.

[Reasons for Recognition] Facts without dispute, Eul evidence No. 1-3, Eul evidence No. 2, Eul evidence No. 3-1-3, Eul evidence No. 4-1, 2, Eul evidence No. 5-1, 2-1, and 2, the purport of the whole pleadings

2. Whether the disposition is proper; and

A. The plaintiff's principal

The compulsory auction against the land of this case at Suwon District Court No. 2005Ma10387 is based on the judgment of damages filed by △△ Corporation against the plaintiff. Since the above judgment of damages is null and void, the above judgment of damages is also null and void, the above compulsory auction procedure is also null and void. Therefore, the defendant's disposition of this case

B. Determination

Even in cases where the ownership of real estate is transferred through a compulsory auction, it constitutes a transfer of assets subject to capital gains tax (see Supreme Court Decision 86Nu711, Mar. 24, 1987), and there is no evidence to acknowledge the Plaintiff’s assertion, and thus, the Defendant’s disposition of this case is lawful.

3. Conclusion

Therefore, the plaintiff's claim is dismissed as it is without merit. It is so decided as per Disposition.