Effect of taxation disposition imposed on non-taxable property

If the Korean Racing Association, a non-profit public-service corporation uses the vacant area on the side of a horse-type horse installed to run a horse-type racing for the proper non-profit public-service business, it shall not be deemed that it is not used directly for the horse-type horse-type horse-type business, so the disposition imposing the property tax, etc. shall be null and void, because the defect is significant and obvious.

Article 107 subparagraph 1 of the Local Tax Act, Article 184 and Article 163 of the Local Tax Act, Article 79 and Article 136 of the Enforcement Decree of the Local Tax Act

Supreme Court Decision 72Nu210 Delivered on December 11, 1973

Attorney Kim Dong-dong, Counsel for the defendant-appellant

Attorney Park Jae-il, Counsel for the defendant-appellant

Seoul High Court Decision 77Na2014, 2015 Decided March 29, 1978

The appeal shall be dismissed. The costs of appeal shall be borne by the defendant.

The grounds of appeal are examined.

1. Under the reasoning of the judgment below, the plaintiff is a non-profit corporation established under the Korean Racing Association Act, and is carrying out the business such as (1) importing, producing, fostering and improving horse race courses for the above purpose; (2) guiding the distribution and use of horse race courses; (3) conducting the sanitary research and study, etc. on drinking water; (5) the plaintiff's Sungdong-gu 1 was used for the above business 38,782 and its neighboring lot of land 23,00,00 and its neighboring lot of land for the purpose of promoting the above business, and the plaintiff is not a non-profit corporation for the above purpose of the acquisition tax and its incidental facilities for the purpose of improving the above 20,000,000 won and used for the above non-profit facilities for the public interest, and the plaintiff is not a non-profit corporation for the above purpose of the acquisition tax and its incidental facilities for the purpose of improving the 1,000,0000 won and has been used for the above 1,000,0000 won.

2. According to Articles 107 subparag. 1 and 184 subparag. 3 of the Local Tax Act and Article 184 subparag. 1 of the same Act, no acquisition tax or property tax shall be imposed on the property acquired or used by a nonprofit business operator for the purpose of direct use for his/her business, religion, charity, learning, art, art, or public interest as prescribed by the Presidential Decree. According to Articles 79 and 136 of the Enforcement Decree of the same Act, a nonprofit business operator as prescribed by the above Act refers to a private corporation established under the Civil Act and other special Acts for the purpose of public interest, and a nonprofit business operator as prescribed by the Presidential Decree, and a nonprofit business operator as prescribed by the Presidential Decree for the purpose of direct use for his/her business, and Article 163 of the Local Tax Act provides that no license tax shall be imposed on the property acquired or used for his/her own business, and Article 126 of the Enforcement Decree of the same Act provides that a license as prescribed by Article 79 shall be granted to an exclusive proprietor, a license granted for its business operation, or its entire business profits.

According to the duly established judgment of the court below, the plaintiff is a non-profit public corporation established under the Korean Racing Association Act. According to the records, even if the plaintiff knows that it is for the achievement of its proper purpose, it is clear in the records that it aims to achieve its proper purpose, and therefore, there is no complaint about the non-profit nature of the plaintiff corporation. It is consistent with the decision of the court below that the operational status of the plaintiff corporation is a non-profit business.

In addition, it is inevitable to conclude that the Plaintiff's non-taxable property is not used directly for the horse racing business, since the Plaintiff's other light-type light-type light-type light-type light-type light-type light-type light-type light-type light-type light-type light-type light-type light-type light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-based light-

3. As seen above, the disposition imposing the property tax, acquisition tax, and license tax by the defendant, despite being exempt from taxation under the Local Tax Act, shall be deemed to be a significant and obvious violation of the legal principle of taxation and its defect (see Supreme Court Decision 72Nu210, Dec. 11, 1973). Thus, the above disposition cannot be deemed to be due to the legal relation subject to taxation or a mistake of fact, such as the theory of lawsuit, and thus, the above disposition in this purport is just and it cannot be deemed to be due to a mistake of fact, and there is no error of law such as the theory of lawsuit, and in case where the disposition of local tax is null and void as a matter of course, it is not necessary to take the procedure under Article 58 of the Local Tax Act, and thus the lawsuit cannot be adopted because it can be asserted as an administrative or civil procedure

Therefore, the appeal shall be dismissed and the costs of the lawsuit shall be borne by the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Jeong Tae-won (Presiding Justice)