Whether it constitutes entertainment expenses for magazines issued in excess of the scope of the original contract for free transfer;

It is deemed that the delivery of magazines without compensation in excess of the scope of the original original contract does not have the original agreement, and even if it is for sales promotion, it constitutes entertainment expenses to promote smooth transactional relations.

Article 18-2 (Non-Inclusion of Entertainment Expenses in Loss)

1. All appeals filed by the plaintiff and the defendant are dismissed.

2. The costs of appeal shall be borne by each party.

1. Purport of claim

The Defendant’s disposition of imposition of KRW 169,79,810 for the business year 1998 against the Plaintiff on September 1, 2001, KRW 222,837,240 for the business year 1999, KRW 222,725,310 for the business year 199, KRW 66,37,970 for the second-term value-added tax for the business year 198, KRW 5,785,850 for the first-year value-added tax for the business year 1999, and KRW 8,204,650 for the second-year value-added tax for the business year 199.

2. Purport of appeal

Of the judgment of the court of first instance, the part against the plaintiff shall be revoked. The defendant revoked each disposition of imposition of KRW 39,510,031 among the disposition of KRW 169,79,810 of corporate tax for the business year 1998 against the plaintiff on September 1, 2001, KRW 65,674,910 of corporate tax for the business year 222,837,240 of the business year 1999, KRW 65,725,310 of the disposition of imposition of KRW 66,37,970 of value-added tax for the second year of 198, KRW 66,37,970 of value-added tax for the second year of 199, KRW 5,785,850 of value-added tax for the first year of 199, KRW 8,204,650 of value-added tax for the second year of 199.

The judgment of the court of first instance is revoked. The plaintiff's claim against the above revocation shall be dismissed.

1. Quotation of judgment of the first instance;

The court's explanation on this case is identical to the reasoning of the judgment of the court of first instance, in addition to the part which is added or replaced as stated in the following 2.3. Thus, this court's explanation is cited in accordance with Article 8 (2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act.

2. Parts used for addition or change;

A. On the ground of the judgment of the court of first instance, the Enforcement Decree of the Inheritance Tax and Gift Tax Act (the Enforcement Decree of the Inheritance Tax and Gift Tax Act), the term “90,000,000 won” in the first sentence shall be changed to the term “the Enforcement Decree of the Inheritance Tax and Gift Tax Act”, “90,000,000 won” in the first sentence, and the term “reasonablely specified” in the 17th sentence, respectively.

(b)Article 60 (Scope of Purchase Tax Amount) shall be added to the following in Part VII, 19.

(c) To delete the “Disbursement of loss” of the 19th page 12.

D. Of the 21th surface map, "○○ City" in the 9th parallel of the 21st parallel of map shall be changed to "○○ City Sypon".

(e) from 22 pages 9 to 15, shall be replaced by the following:

“In this case, the branch office received a certain percentage of fees from the Plaintiff according to the sales amount. The Plaintiff, a separate business entity separate from the Plaintiff, intended to distribute the branch office without compensation only to the extent of 3% of the number of the branch office, only when the reason for sending the magazines of 1,200 per unit average exceeding the scope of the original free copy, as above, was not originally agreed upon by the Plaintiff, even if it was intended to promote sales, it constitutes entertainment expenses to facilitate transactional relations in light of the purpose, scale, and counterpart of the transaction. Accordingly, the Defendant’s disposition that was deemed as entertainment expenses is legitimate.”

(f) to delete, in accordance with Part 23, "as above".

(g) Chapter 8, "A space between a stock company and a stock company" shall be changed into "stock company", "other party", "112,245,00 won", "12,245,00 won" in Part 30, into "12,245,00 won", each of which shall be changed into "the other party", "the other party", and "the other party" in Part 4, 30.

H. After the 30th page 19, the Defendant’s imposition of value-added tax is unlawful, since the service is supplied without receiving any price, and it is not subject to value-added tax.

(i) In managing "in the course of management" under paragraph (11) of the same paragraph, it shall be changed to "in the course of management";

(j) On the third page, following the third page, the defendant's imposition of value-added tax is legitimate since it is not an advertisement without compensation but an external sales.

(k) by changing the "6. Conclusion" in Part 32, 10 to "3. Conclusion".

3. Conclusion

Therefore, the judgment of the first instance is legitimate, and all appeals by the plaintiff and the defendant are dismissed. It is so decided as per Disposition.