The judgment of the court below is reversed.

A defendant shall be punished by imprisonment for three years.

However, for five years from the date this judgment becomes final and conclusive.

1. Summary of grounds for appeal;

A. In relation to the violation of the Punishment of Tax Evaders Act, according to the evidence submitted by the prosecutor, the fact that the Defendant, while operating a stock company C (hereinafter “C”), conceals income and earnings, and intentionally failed to prepare books, etc., makes it impossible or considerably difficult to impose and collect corporate tax due to fraud or other unlawful acts.

The judgment of the court below which acquitted the defendant on this part of the facts charged is erroneous.

B. The sentence imposed by the lower court (three years of imprisonment, four years of suspended execution) is too uneased and unreasonable.

2. Judgment on the assertion of mistake of facts

A. “Fraud or other unlawful act” in the crime of tax evasion as stipulated in Article 3(1) of the Punishment of Tax Evaders Act refers to the act of making it possible to evade taxes, which is deemed unlawful by social norms, i.e., the act of making the imposition and collection of taxes impossible or considerably difficult, or other affirmative act.

Therefore, even though it does not constitute a mere failure to report under the tax law or making a false report without accompanying other acts, in cases where the situation where active concealment intention appears, such as failure to report or underreporting the taxable object and intentional omission of import or sale in the account book, etc., is added, it can be recognized that the imposition and collection of taxes are impossible or remarkably difficult.

(see, e.g., Supreme Court Decision 2013Do865, Sept. 12, 2013; Supreme Court Decision 2013Do9906, Oct. 15, 2015). Since the crime of tax evasion, which is established by the tax evasion by such fraud or other wrongful act, is not an intentional crime, the crime of tax evasion is not an intentional crime, and it does not require that the defendant be subject to the purpose of tax evasion or tax evasion, and there is a criminal intent in the crime of tax evasion.