The meaning of oligopolistic stockholders liable for secondary tax liability

In order to have a shareholder of a corporation bear the secondary tax liability pursuant to subparagraph 2 of Article 39 of the Framework Act on National Taxes, it is necessary to have an oligopolistic shareholder be in a position to substantially control the operation of the corporation, and only the reasons registered as a shareholder in the register of shareholders of the corporation in the form of a shareholder cannot be said to be an oligopolistic shareholder

Article 39 subparagraph 2 of the Framework Act on National Taxes

Supreme Court Decision 80Nu403 Delivered on January 13, 1981, 82Nu8 Delivered on September 28, 1982

[Judgment of the court below]

The director of the tax office

Seoul High Court Decision 83Gu41 delivered on September 28, 1983

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal by the defendant litigant are examined.

In order to impose secondary tax liability on the shareholders of a corporation pursuant to Article 39 subparagraph 2 of the Framework Act on National Taxes, it requires that they are oligopolistic shareholders in a position where the operation of the corporation can be substantially controlled, and only the reasons registered as shareholders in the shareholder list of the corporation in form cannot be said to be the oligopolistic shareholders (see Supreme Court Decision 80Nu403 delivered on January 13, 198; 82Nu8 delivered on September 28, 1982).

According to the court below's decision, the court below held that the disposition of this case, which held that the plaintiff was an oligopolistic shareholder of the above non-party company, was unlawful, since the plaintiff was registered as a shareholder in the register of shareholders at the time when the liability to pay national taxes imposed on the non-party Dongdong Industrial Co., Ltd. was established, although the plaintiff was actually registered as a shareholder in the register of shareholders of the company, but the plaintiff was also registered in the register of shareholders to meet the requirements for incorporation of the company, and the plaintiff is not a shareholder of the company, and the plaintiff was not an oligopolistic shareholder of the above non-party company. In light of the records, the court below's above fact-finding and

Therefore, the appeal is dismissed, and the costs of the appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating judges.

Justices Shin Jong-young (Presiding Justice)