Propriety, etc. that is a bad debt for the account receivable;

Although it is possible to recover the unpaid bills through an advertising agency contract and a set-off between the exercise of the right to collateral security and the advertising commission established accordingly, the bad debt is not recognized as a bad debt which has been voluntarily renounced for the purpose of smooth performance of business with the mining public office.

Article 34 (Inclusion of Allowance for Bad Debts in Expenses

Each appeal shall be dismissed.

Costs of appeal shall be borne by each party.

1. Plaintiff’s ground of appeal

A. Ground of appeal Nos. 1 and 3

The court below acknowledged the facts as stated in its reasoning after comprehensively taking account of the adopted evidence. The non-performing bills in this case are all issued and transferred by the plaintiff's advertising branch from the advertiser to the plaintiff. The advertising branch agreed upon the plaintiff to bear all responsibilities for the plaintiff on behalf of the advertiser in the advertisement agency contract entered into with the plaintiff. The advertising branch established a collateral security right to secure the performance of the obligation arising therefrom. Even after the non-performing bills in this case were not settled, the advertising branch can be seen as continuously publishing in the plaintiff's newspaper and receiving fees from the plaintiff. If the company established a mortgage over the debtor's property, it cannot be treated as a bad debt even after six months have passed since the date of the default on the bills, and the debtor, joint guarantor, and the issuer also included an endorser. In light of the above legal principles, the court below's determination as to the non-performing debt amount and the non-performing debt amount cannot be seen as a smooth bad debt debt amount in the above advertisement agency contract and the non-performing debt amount, and thus, it cannot be seen as an unlawful act in the grounds for appeal.

The court below did not make efforts to recover claims in the absence of efforts to recover claims, but did not state the need for efforts to recover claims. Thus, the plaintiff's ground of appeal to this different purport is without merit.

B. Ground of appeal No. 2

The court below rejected the plaintiff's assertion that the expenses of this case, which the defendant appropriated as expenses for welfare and advertising activities, should be included in the deductible expenses in order to promote the smooth progress of the event, on the ground that it is not possible to confirm the business relations or purpose of expenditure of expenses, or there is doubt about the credibility of such documents. The court below held that the corporate card amount of this case cannot be viewed as expenses for entertainment expenses for the reason that the expenses of this case cannot be viewed as having the nature of welfare expenses for the improvement of the working environment and the promotion of the will to work, and that the expenses of this case should be considered as expenses for entertainment expenses in order to promote the smooth progress of the event by promoting the friendship with the related parties in various events hosted and supported by the plaintiff. In light of the related statutes and records, it is proper to determine the above, and there is no violation of the rules of evidence, or there is no violation of law such as misunderstanding of legal principles as to entertainment expenses and welfare expenses, as alleged in the grounds for appeal.

2. As to the Defendant’s ground of appeal

A. Ground of appeal No.1

The court below acknowledged the facts as stated in its decision after comprehensively taking account of the admitted evidence. Since the issue of lawsuit is different from the disposition of bad debt, since the plaintiff's failure to file a lawsuit against the advertiser to recover the credit account of this case, it cannot be readily determined as voluntary waiver of the recoverable claim merely because the plaintiff did not have filed a lawsuit to recover the credit account of this case, and it cannot be determined that there was a normal business operation or settlement even if the business closure was not made at the time of the disposition of bad debt of the credit transaction, and it cannot be determined that there was an inevitable circumstance to supplement temporarily insufficient advertisements in newspapers, and it is difficult to see that the advertising contract itself exists between the plaintiff and the advertiser because it is difficult to view that the plaintiff is not legally entitled to claim the advertising price due to inevitable circumstances to supplement temporarily insufficient advertisements in newspapers, and there is no evidence to support that the plaintiff acquired profits such as smooth advertising order or increase in the amount of the contract, it cannot be concluded that the plaintiff voluntarily renounced his claim for the purpose of improving transaction relations with the advertiser, and there is no other evidence to acknowledge it.

B. Ground of appeal No. 2

Article 6(5) of the Value-Added Tax Act, which provides that, in cases where goods are supplied or supplied through a commission agent or agent, the principal shall be deemed to have supplied or received the goods directly, except when the principal or the principal is unknown, applies mutatis mutandis to the supply of goods by quasi-Commission agent (see, e.g., Supreme Court Decision 2006Du1098, Jul. 10, 2008).

In light of the above legal principles and all the circumstances such as the contents of the advertising agency contract concluded between the plaintiff and the advertising agency, the reason why the advertising agency provides the advertising service in this case, the method of payment of advertising fees and advertising agency fees, and accounting settlement, the advertising agency constitutes quasi-Commission agent who runs the business of providing the advertising services in its own name. Since Article 6 (5) of the Value-Added Tax Act applies to the supply of services by quasi-Commission agent, the principal who provides the foreign advertising agency in this case is the plaintiff as the principal, and therefore, it is reasonable to deem that the advertising agency has received the advertising fees in Korean currency from the foreign advertising agency in foreign currency through the foreign exchange bank.

In the same purport, the court below held that the Plaintiff’s supply of the advertising service of this case through an advertising substitute constitutes a transaction subject to zero tax rate under Article 11(1)4 of the former Value-Added Tax Act (amended by Act No. 8826 of Dec. 31, 2007) and Article 26(1)1 of the Enforcement Decree of the same Act (amended by Presidential Decree No. 17041 of Dec. 29, 2000), and there is no error in the misapprehension of legal principles as to the application of zero tax rate and the legal nature of the advertising agency contract under the Value-Added Tax Act as otherwise alleged in the ground of appeal

3. Conclusion

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

[Seoul High Court Decision 2005Nu22717 ( October 31, 2006)]

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

Expenses for appeal shall be borne by each person.

1. Purport of claim

The portion exceeding the "amount of tax assessed against the plaintiff" in each "amount of tax assessed on September 1, 2001" in each "amount of tax assessed on the basis of the "amount of tax assessed on the basis of the "amount of tax assessed on the basis of the plaintiff," and each "amount of tax assessed on the basis of value-added tax" in each "amount of tax assessed on the basis of the "amount of tax assessed on the basis of the plaintiff," which

2. Purport of appeal

A. The plaintiff's purport of appeal

The portion of the judgment of the first instance against the plaintiff shall be revoked. Each "political tax amount" of the corporate tax stated in the separate disposition details against the defendant on September 1, 2001, which the defendant made to the plaintiff on September 1, 201, exceeds the "amount of the final tax" column of each "amount of the final tax," and each "political tax amount" of the "amount of the final tax" column of value-added tax shall be revoked.

B. The defendant's purport of appeal

In the judgment of the first instance court, the part against the defendant shall be revoked, and all the plaintiff's claims corresponding to the above revocation shall be dismissed.

1. Quotation of the reasons for the judgment of the first instance;

The court's explanation on the instant case is consistent with the reasoning of the first instance court's judgment, except for the dismissal or addition and deletion of part of the judgment of the first instance as set forth in the following paragraph (2). Thus, the court's explanation is cited in accordance with Article 8 (2) of the Administrative Litigation Act and Article 420

2. Parts used by or added to, or deleted by this court;

(a) Part 3 of the judgment of the court of first instance shall be deemed to be "consecting expenses" in Part 12 of the judgment of the court of first instance.

(b) between 5, 11 and 12, of the first instance judgment;

In addition, Article 21 (3) of the former Enforcement Decree of the Corporate Tax Act and Article 9 (2) of the former Enforcement Rule of the former Enforcement Rule of the Corporate Tax Act (applicable to Article 34 (2) of the current Corporate Tax Act and Article 62 (1) of the Enforcement Decree of the same Act) shall be deemed to be bonds that can not be recovered as a matter of course, and therefore, it shall be deemed that the defendant's act of taking the grounds such as debt recovery efforts not provided in the above Acts and subordinate statutes as the requirement for the settlement of bad debt

(c) eliminate the part of the first instance court's decision from 14th to 15th 3th 14th 16th 16th 15th 15th 200.

(d)in relation to the first instance judgment Nos. 16, 14 and 15,

In the meantime, the phrase of Article 21 subparag. 3 of the Enforcement Decree of the Corporate Tax Act and each subparagraph of Article 9(2) of the former Enforcement Rule can not be interpreted as "a bond which is deemed unrecoverable only if it falls under any of the subparagraphs of Article 9(2) of the former Enforcement Rule." Rather, the reasons under each subparagraph of Article 9(2) of the former Enforcement Rule are the examples of the causes unrecoverable and it is interpreted that it is possible to dispose of bad debt, and such interpretation cannot be viewed as contrary to the principle of strict interpretation of tax law."

(e) No. 21 of the judgment of the first instance court shall be written by adding to "the amount and degree" of No. 17 of the judgment of the first instance.

(f)in respect of "........ does not have reasons" in Sections 22, 10 to 17, of the first instance judgment;

The plaintiff asserts that the amount of the corporate card of this case was used for employee meeting expenses. According to Gap evidence Nos. 18-1 through 14, the plaintiff prepared an expenditure resolution that the total of KRW 1,115,735 won was spent as the plaintiff's corporate card during eight times from January 23, 200 to February 24, 200. However, the amount is extremely limited to part of the amount of the corporate card of this case, and even according to the above expenditure resolution, it is most of the cases where it is not clear who is meal together with the officer who used the corporate card of this case. Thus, the above facts alone are insufficient to support the above."

G. From 8th to 10th 10th 10th 23th 23th 8th 23th 8th 200.

3. Conclusion

Therefore, the judgment of the first instance is just, and all appeals by the plaintiff and the defendant are dismissed as it is without merit. It is so decided as per Disposition.

[Seoul Administrative Court 2003Guhap34264, 2005)]

1. On September 1, 2001, each "political tax amount" of the corporate tax for the business year of Articles 8 through 11 as stated in the disposition of imposition attached hereto that the defendant rendered to the plaintiff on September 1, 2001 exceeds the "calculated tax amount" of each "political tax amount", and each "political tax amount" of the "calculated tax amount of value-added tax" shall be revoked.

2. All remaining claims of the Plaintiff are dismissed.

3. Three-minutes of litigation costs are assessed against the Plaintiff, and the remainder is assessed against the Defendant, respectively.

The portion exceeding the "amount of tax assessed against the plaintiff" in each "amount of tax assessed on September 1, 2001" in each "amount of tax assessed on the basis of the "amount of tax assessed on the basis of the "amount of tax assessed on the basis of the plaintiff," and each "amount of tax assessed on the basis of value-added tax" in each "amount of tax assessed on the basis of the "amount of tax assessed on the basis of the plaintiff," which

1. Details of the disposition;

The following facts are not disputed between the parties, or are recognized in full view of Gap evidence 1-1 to 14, Gap evidence 2, 3, Eul evidence 1-1 to 6, Eul evidence 2-1 to 16, Eul evidence 1 to 16, Eul evidence 17-1 and 2.

A. The Plaintiff is a company that runs the newspaper publishing business.

(2) The defendant is notified of the results of tax investigation by ○○○ and ○○ Tax Office and reported tax amount of value-added tax. ① The amount of 3,98,027,042 that the plaintiff handled as bad debts is 1,065,940,197 (hereinafter referred to as “the credit sales of this case”)'s advertising claim against the advertiser who runs a business normally. The amount of 1,597,478 won (hereinafter referred to as “the non-performing bill amount”) is 6 months after the date of the bankruptcy, 000 won and 40. 1. 2. 3. 4. 8. 4. 8. 4. 4. 7. 7. 4. 7. 8. 4. 7. 7. 4. 7. 7. 7. 4. 1. 7. 7. 7. 1. 4. 7 . 7. 7. 1. 7 . 7. 7 . . 7 . . 7 . . . . . 7 . . . . 4 . . . . . . . . .

C. On November 29, 2001, the Plaintiff appealed against the director of ○○ Regional Tax Office. However, the director of ○○ Regional Tax Office dismissed the Plaintiff’s objection on March 26, 2002. On July 5, 2002, the Commissioner of ○○ Regional Tax Office filed a request for examination with the Commissioner of the National Tax Service, but the Commissioner of the National Tax Service dismissed the Plaintiff’s request for examination on July 21, 2003.

After that, the defendant recognized the expenses of the plaintiff's free distribution newspaper (one-free newspaper) as deductible expenses and corrected the corporate tax for each business year from July 1996 to June 200 as shown in the attached disposition of imposition; 1. The defendant corrected the corporate tax for each business year from July 1, 1996 to each business year as stated in the "amount of the determined tax" (hereinafter "the disposition of imposition of value-added tax and the disposition of imposition of the corrected corporate tax as of September 1, 2001").

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

(1) The bad debt portion of the instant case

In the instant credit account sales, together with claims not recovered due to the bankruptcy or default of the customer, the Plaintiff voluntarily posted an advertisement without entering into the advertising service contract with the advertiser, and thereafter claims the advertisement amount (hereinafter referred to as "refluent publication"). In the case of bankruptcy or default of the customer, the Plaintiff was inevitably treated as bad debt because it is impossible to recover the claim even though the Plaintiff made all possible efforts for recovery of the claim, or the recovery costs are likely to exceed the amount of the claim that can be recovered. In the case of unreasonable publication, the Plaintiff inevitably dealt with bad debt after the expiration of the extinctive prescription, considering that the Plaintiff had no right to force the advertiser to recover the claim by law.

However, it is unreasonable for the Defendant to consider that the Plaintiff voluntarily renounced its credit account receivable at the time of handling the bad debt of the credit account receivable of this case, and to determine all of the credit account receivables of this case as the contactal expense on the ground that the Defendant did not simply file a report on the discontinuance of business of the advertiser at the time of handling the bad debt account receivables of this case. Furthermore, the amount of KRW 4

In the case of bills for which 6 months have passed since the default on the payment of the unpaid bills of this case, a bad debt can be processed without any limit under the Corporate Tax Act. Even if the plaintiff set up the right to collateral with respect to the advertisement branch, the part exceeding the maximum debt amount secured by the right to collateral security should be treated as bad debt. The defendant simply endorsement the advertisement branch in the insolvent bill of this case, and on the ground that the advertisement branch of this case set the right to collateral security against the advertisement branch of this case, it is unreasonable to view that the plaintiff voluntarily renounced the right to collateral security, and view

(2) The portion of welfare expenses of this case

The plaintiff prepares the minimum amount of operating expenses and the budget for business promotion expenses necessary for each department in the company and controls the expenditure inside the company, but there is a case where the relevant department fails to have evidence of expenditure inevitably due to the characteristics of its business when executing the budget in detail.

Considering that the amount of the documentary evidence of this case is not provided for the same reason, and that the ratio is not sufficient for the entire budget, and that it is reasonable to include expenses within the scope deemed necessary by social norms, among the amount of the documentary evidence of this case, the amount of the documentary evidence of this case, 219,048,470 won, which is the difference between the amount of the documentary evidence and the amount of the documentary evidence of this case, and 68,107,50 won, which is all included in the deductible expenses.

Since most of the corporate card usage amount of this case is the nature of welfare expenses used as employee's meal expenses, it should be included in the calculation of losses.

The cultural project cost of this case also is essential expenses incurred in the events held by the Plaintiff for the purpose of developing culture and arts, and ultimately expenses disbursed for the purpose of promoting the Plaintiff’s business.

(3) The part of the bad debt tax amount of this case

The portion of the bad debt tax amount of this case is also related to the bonds with promissory notes for which six months have elapsed since the date of the default on payment due to the same reasons as the case of the bad debt tax amount, and the portion which is deducted from the bad debt tax amount or exceeds the maximum debt amount of the right

(4) Foreign advertisement services of this case

The Plaintiff supplied advertising services to a nonresident or a foreign advertiser who has no domestic place of business under an advertising agency contract entered into between the advertising agency and the foreign advertiser. In the case of a foreign advertiser, the advertising agency received advertising fees from a foreign advertiser through a foreign exchange bank on behalf of the Plaintiff and delivered them to the Plaintiff.

Therefore, the advertising agent constitutes a quasi-Commission agent under the Commercial Act. Accordingly, pursuant to Article 6 (5) of the Value-Added Tax Act, the plaintiff, the principal, directly supplies advertising services to foreign advertisers. The advertising agent's payment of advertising fees in Korean currency through foreign exchange banks should be deemed to be the same as that of the plaintiff under Article 103 of the Commercial Act. Thus, foreign advertising services performed by the plaintiff are transactions subject to zero-rate tax rate under the Value-Adde

B. Determination

(1) The instant bad debt

(A) Relevant statutes

[Gu Corporate Tax Act]

Income for each business year (pre-amended by Act No. 5581 of Dec. 28, 1998)

(1) The income of a domestic corporation for each business year shall be the amount obtained by deducting the total amount of losses which falls or comes to fall under the business year from the total amount of earnings which falls or comes to fall under the business year.

(3) The term "deductible expenses" in paragraph (1) means the amount of losses incurred by transactions which reduce net assets of a corporation, except as otherwise provided for in this Act, such as refund of capital or shares, disposal of surplus funds, and transactions which reduce

Article 34 (Inclusion of Bad Debt Allowance in Expenses

(2) The amount of bonds irrecoverable by such causes as the debtor's bankruptcy or other causes as determined by the Presidential Decree (hereafter in this Article, referred to as "deductible expenses") among bonds held by a domestic corporation shall be included in deductible expenses in calculating the income amount for the

[Enforcement Decree of the Corporate Tax]

Article 12 Definition of Profits and Losses (amended by Presidential Decree No. 15970 of Dec. 31, 1998, by Presidential Decree No. 15564 of Dec. 31, 1997)

(2) "Loss expenses" in Article 9 (3) of the Act means the expenses enumerated in the following subparagraphs, except those prescribed by the Act and this Decree:

8. Bad debts (including outstanding amounts of value-added sales tax which cannot be recovered and which have not received a bad debts tax deduction under Article 17-2 of the Value-Added Tax Act);

The bad debt as provided in Article 12 (2) 8 of the Scope of the Bad Debt (amended by the Presidential Decree No. 15516, Dec. 31, 1997) shall fall under one of the following subparagraphs:

1. Debentures which cannot be recovered due to the bankruptcy, compulsory execution, execution of punishment or discontinuation of the business of the debtor;

3. Other bonds which are deemed irrecoverable pursuant to the Ordinance of the Prime Minister.

Bad debts under Article 12 (2) 8 of the Scope of bad debts under Article 21 (2) of the Act (amended by the Presidential Decree No. 15686 of Feb. 24, 1998) shall be those falling under any one of the following subparagraphs: Provided, That in the case of a domestic corporation falling under any of subparagraphs of Article 18-3 (3) of the Act, those concerning claims for indemnity under Article 14 (1) of the Act shall be

1. Debentures which cannot be recovered due to the bankruptcy, compulsory execution, execution of punishment or discontinuation of the business of the debtor;

3. Other bonds which are deemed irrecoverable pursuant to the Ordinance of the Prime Minister.

Bad debts under Article 12 (2) 8 of the Scope of bad debts under Article 21 (2) shall be those falling under any one of the following subparagraphs: Provided, That in case of the Association-registered corporations under Article 15 (1) 10 of the Act and the domestic corporations falling under any of subparagraphs of Article 18-3 (3) of the Act, those concerning claims for indemnity under Article 14 (1) of the Act shall be excluded:

1. Debentures which cannot be recovered due to the bankruptcy, compulsory execution, execution of punishment or discontinuation of the business of the debtor;

3. Other bonds which are deemed irrecoverable pursuant to the Ordinance of the Prime Minister.

Bad debts under Article 12 (2) 8 of the Scope of bad debts under Article 21 (2) 8 of the Act (wholly amended by the Presidential Decree No. 15970, Dec. 31, 1998) shall be those falling under any one of the following subparagraphs: Provided, That in case of the Associationregistered corporation under Article 15 (1) 10 of the Act and the domestic corporation falling under any subparagraph of Article 18-3 (3) of the Act, those concerning claims for indemnity under Article 14 (1) of the Act shall be excluded:

1. Debentures which cannot be recovered due to the bankruptcy, compulsory execution, execution of punishment or discontinuation of the business of the debtor;

3. Other bonds which the Ordinance of the Ministry of Finance and Economy deems irrecoverable.

Article 62 Scope of Bad Debts (amended by Presidential Decree No. 15970, Dec. 31, 1998; Presidential Decree No. 17033, Dec. 31, 2000; Presidential Decree No. 17033, Dec. 31, 2000; however, the following was not amended:

(1) The term "bonds which cannot be recovered by the reason prescribed by Presidential Decree" in Article 34 (2) of the Act means those falling under any of the following subparagraphs:

1. Account receivables and accounts receivable for which extinctive prescription has been completed under the Commercial Act;

9. Claims on checks or bills for which six months or more have elapsed from the date of dishonor and the credit account sales (limited to those prior to the date of dishonor among the credit account sales of small and medium enterprises): Provided, That the cases where the relevant corporation establishes a mortgage on the debtor's property

[Enforcement Rule of the Corporate Tax Act]

Article 9 Calculation of Allowance for Bad Debt and Bad Debt (amended by Ordinance of the Prime Minister No. 622 of March 29, 1997)

(2) Claims deemed irrecoverable under the conditions as prescribed by Ordinance of the Prime Minister under Article 21 (3) of the Decree shall be the following:

8. Claims on checks or bills for which six months have elapsed from the date of default: Provided, That the cases where the concerned corporation establishes a mortgage on the debtor's property shall be excluded;

Article 9 Calculation of Allowance for bad debts and bad debts (amended by Ordinance of the Ministry of Government Administration and Home Affairs No. 12 of March 21, 1998)

(2) Claims deemed irrecoverable under the conditions as prescribed by Ordinance of the Prime Minister under Article 21 (3) of the Decree shall be the following:

8. Claims on checks or bills for which not less than 6 months have elapsed from the date of the default on payment (limited to those on which the account receivables of small and medium enterprises pursuant to the provisions of Article 68 of the Decree have occurred before the date of the default on payment): Provided, That the cases where the relevant corporation

Article 9 Calculation of Allowance for Bad Debts and Bad Debt (amended by Ordinance of the Ministry of Government Administration and Home Affairs No. 86 of May 24, 1998, and Paragraph 2 of this Article was amended by Ordinance No. 41 of August 22, 1998, but Paragraph 8 of this Article was not amended)

(2) Claims which are deemed irrecoverable under the conditions as prescribed by the Ordinance of the Ministry of Finance and Economy under subparagraph 3 of Article 21 of the Decree shall be as follows:

8. Claims on checks or bills for which not less than 6 months have elapsed from the date of the default on payment (limited to those on which the account receivables of small and medium enterprises pursuant to the provisions of Article 68 of the Decree have occurred before the date of the default on payment): Provided, That the cases where the relevant corporation

(B) Facts of recognition

The following facts do not conflict between the parties, or comprehensively taking account of Gap evidence 4-1 through 9, Gap evidence 6-1 through 51, Gap evidence 8-1, 2-9-1, 2, 3, Gap evidence 19, 20, 26, Gap evidence 28-1 through 41, Gap evidence 39-1 through 62, Gap evidence 40-1 through 120, Gap evidence 41-1 through 75, Gap evidence 42-1 through 9, Eul evidence 43-1 through 43-1, Eul evidence 18, 19-1, 20-2, Gap evidence 20-1 through 28-2, Gap evidence 31-2, Gap evidence 39-1 through 35, Gap evidence 42-1 through 43-9, Gap evidence 43-1 through 29, Eul evidence 19-2, Eul evidence 20-1, 20-21, 21 through 2-28-2

1) The part of the credit account sales of this case

A) Although the Plaintiff Company is in charge of the advertising business place, the advertising fee collection affairs are in charge of the advertising planning and management division. The advertising fee collection affairs are in charge of the advertising fee collection affairs. Although the advertising management division is in charge of 13-15 employees, the advertising planning management division, other than one management director, is in charge of the collection of advertising fee claims by three out-of-standing employees, including 2 domestic workers and 3 foreign workers.

The plaintiff shall issue a tax invoice and claim advertising fees to the advertiser if the business operator requests the person in charge of advertising planning after publishing the advertisement, and the person in charge of management shall claim advertising fees to the advertiser.

B) The Plaintiff determines the number of advertising pages to be inserted in the newspaper page three days prior to the publication of the general newspaper on the regular basis of the production of the newspaper. However, if it is found that there is no particular problem by asking about whether the content of the advertisement is re-published to the advertiser of the advertisement previously published, if it is confirmed that there is no problem by asking about whether the content of the advertisement is re-published, the Plaintiff is notifying the advertiser of the fact that the Plaintiff arbitrarily publishes the advertisement, and then requesting the advertiser to reflect the price of the advertisement already published in the budget compilation

The plaintiff voluntarily posted an advertisement, and then entered a specified amount in the book as advertising fees and requested the advertiser to pay advertising fees. A certain amount is reflected in the budget of the advertiser's unreasonable advertising fees, but if the advertiser does not recognize it, he/she did not recover the advertising fees and treated the advertisement fees arbitrarily recorded after the expiration of the period of extinctive prescription of the claim as bad debts.

C) According to the statement of the credit sales in the case where the Defendant was bad debt, the number 56 and 63 are the same as the name of the advertiser, business registration number, and the amount of credit sales, and the amount of 83 and 96, 100 and 101, 124 and 256, 134 and 200, 153 and 154, 180 and 225, 187 and 204, 184, 204, 253 and 189 and 214 are the same as the amount of credit sales.

In addition, among the advertisers of credit sales claims of this case, each advertiser of credit sales claims of this case, 3,4,6,10,11,20,24,28,29,46,47,50,54,59,67,77,78,91,94,102,110,114,114,121,125,135,136,155,159,164,166,173,176,176,182,191,203,207,213,214,2231,231,232,233,234, and240 as of February 14, 2004 are closed, suspended, or registered.

D) Meanwhile, there is no fact that the Plaintiff filed a lawsuit against the advertiser to recover the credit account receivable of the instant case.

E) The details of bad debt handled by the Plaintiff as the instant credit sales are KRW 81,50,50 on June 30, 1997 (the 8th business year), KRW 181,08,46 on June 30, 1998 (the 9th business year), KRW 164,497,150 on June 30, 199 (the 10th business year), and KRW 1,065,940,197 on June 30, 200 (the 11st business year).

2) The portion of the non-performing bills of this case

A) On November 1, 1995, the Plaintiff entered into an advertising contract with each advertising branch to be published in the Plaintiff’s newspaper with the ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ on November 1, 1995, and on January 1, 1997, with each advertising branch. The Plaintiff paid advertising fees to the Plaintiff. ① The advertising branch shall establish an office within its business territory, carry out all the affairs necessary for the advertising branch, and ② the Plaintiff shall be directly and severally liable for any civil and criminal liability incurred in operating the branch office. ② The Plaintiff shall be liable for the Plaintiff’s cash or securities deposited in the name of the advertising branch by the last day of the following month, and ④ The Plaintiff shall be liable for damages arising from all the advertising branch’s establishment of the advertising branch to the Plaintiff’s association or its branch office as collateral.

Advertising branch office

Date of Establishment

Details of real estate

Maximum Amount

○ Branch Office

February 16, 1994

○○○○○○-dong ○○-dong ○○ apartment ○○○-dong ○○○ (ownership of ○○)

gold 200,000,000

July 16, 1997

As above,

J. 50,000,000

○ Branch Office

June 4, 1997

○○○○○○○-dong ○○ apartment-dong ○○○○○-dong ○○○○○-dong ○○

J. 300,000,000

○ Branch Office

February 21, 1997

○○○○○○-dong ○○ apartment-dong ○○○○-dong ○○○-dong ○○

gold 200,000,000

B) All of the instant insolvent bills are endorsed by the advertising branch. The details and amount of the instant insolvent bills endorsed by the advertising branch are KRW 115,45,400 for ○○ branch office, KRW 155,763,378 for ○○ branch office, KRW 326,498,70 for ○○ branch office.

C) The amount of the non-performing bill of this case that the Plaintiff processed as bad debt is KRW 1,230,145,478; KRW 34,00,00,000, which was deducted from the amount of KRW 84,032,00 on June 30, 1998; KRW 1,256,545,478, which was collected from the amount of KRW 26,40,000 on June 30, 199; and KRW 283,540,000, which was deducted from the amount of KRW 34,000,000 on June 30, 200.

(C) Determination

1) The part of the credit account sales of this case

If a company is unable to enforce the performance of credit sales claims more legally due to the expiration of the extinctive prescription period prescribed by the law, it is possible to treat them as bad debts under the Corporate Tax Act, but if it is recognized to have voluntarily renounced its claims for the purpose of improving the relationship with the business partner, it should be viewed as a contactal expense (Therefore, the plaintiff's assertion that bad debts can be treated without any restriction if it meets the requirements for bad debts under the Corporate Tax Act.)

Therefore, even though the Plaintiff could collect the credit account of this case from the advertiser, the Plaintiff did not file a lawsuit against the advertiser in order to recover the credit account of this case. However, the possibility of recovering claims through the judgment and the time and expenses incurred in the lawsuit should vary depending on the profit and loss between the filing of the lawsuit and the settlement of the bad debt of the claim. Thus, even if the Plaintiff did not file a lawsuit to recover the credit account of this case against the advertiser, it cannot be readily concluded that the Plaintiff voluntarily waives the claim even though it was possible to collect the claim, and a large number of sponsors who are liable to collect the credit account of this case’s credit account was terminated by the report of business closure at the time of February 14, 2004. In general, in light of the general circumstance that the Plaintiff’s failure to make a normal settlement due to financial pressure from the time of bankruptcy or bankruptcy, it is unreasonable to readily conclude that the Plaintiff did not have any other evidence to prove that the Plaintiff could not have collected the credit account of this case’s disclosure for the purpose of the advertisement of this case.

Furthermore, from among the credit sales in this case, it is clear that the credit sales amount of the same company is the same (not dispute between the parties), the remaining 83, 96, 100 and 101, 124, 124, 256, 134, 153 and 154, 187, 204, 253, 189 and 214, among the credit sales in this case, the number of 56 and 63 among the credit sales in the attached specifications of the credit sales in this case is the same as the business registration amount of the same company (where the same business is operated by multiple business places, it is highly likely that the same business places are operated by the same business places), and the amount of the credit sales in this case is identical or similar to the same one of the two business places (the same as 134 and 200 units).

Therefore, it is unlawful for the Defendant to deny the disposition of bad debt of the credit account in this case for the business year from 8 to 11, and to determine it as the contact cost. Thus, it is reasonable to determine the amount of legitimate tax by treating the credit account in this case as bad debt. Thus, it is stated that the amount of tax is stated in the attached disposition details (the specific calculation details stated in the attached disposition details * the calculation details of the legitimate corporate tax amount) and the attached disposition 1. Among corporate tax, it is stated in the attached disposition No. 8 to 11 as the "reasonable tax amount" stated in the attached disposition No. 8 to 11. In the disposition of corporate tax in this case, the portion that exceeds the "reasonable tax amount" of the "calculated tax amount" of the "calculated tax amount" of the "calculated tax amount" of the corporate tax

2) The portion of the non-performing bills of this case

In full view of the following: (a) the instant insolvent bill was endorsed and transferred by the advertising branch to the Plaintiff the bill issued as the advertising price received by the advertiser; (b) the advertising branch agreed with the Plaintiff to pay all the responsibilities to the Plaintiff on behalf of the advertiser with respect to the advertising agency agreement entered into with the Plaintiff; and (c) thereby, the advertising branch established a collateral security right to secure the performance of all the responsibilities arising to the Plaintiff; and (d) even after the instant insolvent bill was not settled, the advertising branch continued to allow the advertisement to be published in the Plaintiff’s newspaper; and (e) it appears that the advertising branch would have received the fees from the Plaintiff, even though it was sufficiently possible to recover the instant insolvent bill through the exercise of the said advertising agency agreement and set-off of the right to collateral security and the advertising commission established accordingly, it shall be deemed that the Plaintiff disposed of the bad debt without any implementation of these procedures, and ultimately, the advertising branch voluntarily renounced its claims for the purpose of smooth performance of its business

Furthermore, according to the provisions of the Corporate Tax Act, if a corporation establishes a mortgage on the debtor's property, it may not be treated as a bad debt even after six months have elapsed from the date of the default on a bill. In this case, it shall be deemed that the original debtor, joint guarantor, and the drawer who bears the obligation on a bill and the endorser who bears the duty of recourse together with the issuer is also included. Thus, as to the portion included in the maximum debt amount on the right to collateral security established by the plaintiff under an agreement with the advertising branch, at least the amount of the default on a bill in this case, it is impossible to dispose of bad debt even in such respect (at least the maximum debt amount on the part exceeding the maximum debt amount on the right to collateral security in this case, the plaintiff may lawfully dispose of bad debt, but as seen earlier, it is possible for the advertising branch to hold the liability against the advertising branch by the advertising branch, and it is possible to offset the advertising commission to be paid to the advertising branch.

Therefore, it is legitimate for the defendant to deny the disposition of bad debt of the non-performing bill of this case and to consider it as a contact expense. The plaintiff's assertion on this part is without merit.

(2) Welfare expenses of this case

(A) Relevant statutes

[Gu Corporate Tax Act]

Article 18-2 (Non-Inclusion of Entertainment Expenses in Calculation of Losses (wholly amended by Act No. 5581 of Dec. 28, 1998)

(1) For the purpose of paragraphs (1) and (2), the term "entertainment expenses" means entertainment expenses, social expenses, secret expenses, entertainment expenses, and other expenses of a similar nature regardless of the pretext thereof, which are disbursed by a corporation in connection with its business: Provided, That the amount within the scope prescribed by Presidential Decree, of the confidential expenses disbursed under the conditions as prescribed by Presidential Decree,

Article 25 (Non-Inclusion of Entertainment Expenses in Calculation of Losses (amended by Act No. 5581 of Dec. 28, 1998, which was amended by Act No. 6293 of Dec. 29, 200)

(4) The term "entertainment expenses" in paragraphs (1) through (3) means entertainment expenses, social expenses, recompense, and other expenses of a similar nature regardless of the pretext thereof, which are disbursed by a corporation in connection with its business.

A corporation liable for the keeping and keeping of account books under Article 62 (amended by Act No. 5581 of Dec. 28, 1998) shall keep account books, keep account books by the double entry bookkeeping, and keep and preserve important documentary evidence related to the account books: Provided, That non-profit domestic corporations shall be limited to those operating profit-making business under Article 1 (1) 1 and 7.

Article 116 Receipt and Safekeeping of Documentary Evidence of Expenditures (wholly amended by Act No. 5581, Dec. 28, 1998)

(1) A corporation shall prepare or receive documentary evidence for all business-related transactions for each business year and keep them for 5 years from the date of the expiration of the time limit for report under the provisions of Article 60.

(2) In cases of paragraph (1), where any corporation receives goods or services from a business operator prescribed by the Presidential Decree and pays the price therefor, it shall receive and keep the evidential documents falling under any of the following subparagraphs: Provided, That the same shall not apply to cases prescribed by

1. Credit card sales slip under the Specialized Credit Financial Business Act (in case of transactions conducted using things similar to a credit card as prescribed by the Presidential Decree, including the documentary evidence);

2. Tax invoice under Article 16 of the Value-Added Tax Act;

3. Invoice under Article 121 of this Act and Article 163 of the Income Tax Act.

[Enforcement Decree of the Corporate Tax]

Article 13 Welfare Expenses (amended by Presidential Decree No. 15970 of Dec. 31, 1998)

(1) Where a corporation makes expenses prescribed in the following subparagraphs for officers or employees, they shall be treated as losses:

1. Sports expenses for employees;

2. Entertainment expenses for employees;

3. Operating expenses of employee stock ownership association under the Income Tax Act;

4. An amount of expenditure under each of the following items accumulated in addition to the company for the payment of retirement allowances to officers and employees: Provided, That in case of a corporation other than financial institutions authorized under the Trust Business Act, it is limited to the amount of expenditure under items

(a) Insurance money paid due to the retirement of an officer or employee, and insurance premium of the insurance in which the officer or employee is the successor and beneficiary (hereinafter referred to as the “group retirement insurance”); and

(b) The installment of a trust in which the retirement of an officer or employee is subject to the payment of trust money, and whose beneficiary is the officer or employee (hereinafter referred to as the “employee retirement trust”); and

(c) Retirement insurance under the Labor Standards Act or installments for retirement lump sum trust as determined by the Ordinance of the Ministry of Finance and Economy (hereinafter referred to as “retirement insurance”);

4. An amount of expenditure under each of the following items accumulated in addition to the company for the payment of retirement allowances to officers and employees: Provided, That for corporations other than financial institutions authorized by the Trust Business Act, the amount of expenditure under item (a) is limited to that under item (a):

(a) Insurance money paid due to the retirement of an officer or employee, and insurance premium of the insurance in which the officer or employee is the insured and the beneficiary (hereinafter referred to as the “group retirement insurance”);

(b) The installment of a trust in which the retirement of an officer or employee is subject to the payment of trust money, and whose beneficiary is the officer or employee (hereinafter referred to as the “employee retirement trust”); and

5. Medical insurance premiums borne by the employer under the Medical Insurance Act and other charges;

6. Support expenses for family planning projects;

7. Operating expenses for the workplace care facility established under the Infant Care Act;

8. Insurance premiums borne by the employer under the Employment Insurance Act; and

9. Welfare expenses equivalent to the expenses under subparagraphs 1 through 8; and

Article 45 (Non-Inclusion of Welfare Expenses in Calculation of Losses (wholly amended by Presidential Decree No. 15970 of Dec. 31, 1998, amended by Presidential Decree No. 17457 of Dec. 31, 2001, amended by Presidential Decree No. 16703 of Feb. 7, 200, but amended by Presidential Decree No. 16703 of Feb. 7, 200, however, Paragraph 1(8) was not amended)

(1) Of welfare expenses paid by a corporation for its officers or employees, expenses other than those falling under any of the following subparagraphs shall not be included in the calculation of losses:

8. Other condolence and congratulatory expenses paid to executives or employees which are similar to those under subparagraphs 1 through 7, within the scope of those generally recognized as proper by society.

Article 158 Receipt and Safekeeping of Documentary Evidence of Expenditures (wholly amended by Presidential Decree No. 15970, Dec. 31, 1998; Presidential Decree No. 17033, Dec. 29, 2001)

(1) The term "business operator prescribed by the Presidential Decree" in Article 116 (2) of the Act means a business operator falling under any of the following subparagraphs:

1. Corporations: Provided, That this shall not include corporations falling under any one of the following items:

2. A businessman under Article 2 of the Value-Added Tax Act: Provided, That any simplified taxable person or any special taxable person under Article 25 of the Value-Added Tax Act located in Eup/Myeon area, other than any credit card merchant under the Specialized Credit

(2) The term “case prescribed by the Presidential Decree” in the proviso of Article 116 (2) of the Act means the case falling under each of the following subparagraphs:

1. Where the transaction amount (including value-added tax) of the commodities or services provided is less than 100,000 won:

2. Where goods or services are directly supplied by farmers or fishermen (referring to persons engaged in crop production business, livestock industry, complex agriculture, forestry or fishery among agriculture under the Korea Standard Industrial Classification, and excluding corporations);

3. Where services are rendered by a business income earner subject to withholding under the provisions of Article 127 (1) 3 of the Income Tax Act (limited to those withheld); and

4. Where the Ordinance of the Ministry of Finance and Economy prescribes.

(3) The term “those as prescribed by the Presidential Decree” in Article 116 (2) 1 of the Act means debit cards under the Specialized Credit Financial Business Act and credit cards issued in foreign countries.

(B) Determination

1) The portion of the non-conforming amount of the evidence of this case

In light of the above, it is difficult to verify whether the expenditure amount of expenses is related to the plaintiff's business or any purpose, due to the omission of the evidence, and the portion without the evidence differs between the total amount of expenditure amount in the account book and the total amount of the documentary evidence of this case from the account book and the documentary evidence of this case. Thus, it is impossible to verify whether the expenditure amount of expenses is related to the plaintiff's business or the purpose of the tax adjustment is paid. The part which differs between the documentary evidence and the date of the transaction is different from the date of the transaction. The evidence of this case that is attached between September 13, 1994 and November 17, 2000 among the items paid as the operating expenses of each department between July 25, 1995 and June 30, 200. Thus, it is questionable that the evidence of this case is legitimate in view of the above circumstances that the normal evidence of the ordinary expenditure has been kept at the time between six months and the date of the transaction (No. 16-3).

The plaintiff asserts that there are some kinds of expenses due to the characteristics of the newspaper industry: (1) it is difficult to view that only the plaintiff does not have evidence of the expenses, unlike other companies, and (2) it is inappropriate to view that all of the expenses were inappropriate despite the omission ratio if the budget compiled as operating expenses of each department is too small; (3) it is not possible to regard that the amount of expenses without evidence can be included in deductible expenses according to the difference between the amount of expenses without evidence and the ratio of the total expenses for 2,618,340 won (the amount of expenses compiled by each department operation cost is KRW 2,618,062, 340, which is 11.7% (308,038, 408, 618, 340 won) of the total expenses for 200,000,000 won and the total expenses for 160,000,000 won and 160,000 won are not included in deductible expenses.

2) The portion regarding the amount of the corporate card of this case

Welfare expenses refer to expenses of labor cost disbursed for the improvement of the working environment, improvement of the desire to work, etc., and specifically, expenses for the purchase of grain and food materials in the premises of cafeterias and food materials operated without meal expenses from employees for the provision of meals to employees, expenses for the purchase of raw water, expenses for purchase of clothing and drinking water, expenses for employees' light surveys, clothes, meal expenses, meal expenses, meeting expenses, night-time expenses, industrial accident insurance premiums and national pension, medical insurance premiums, employment insurance premiums, and other expenses borne by the company.

According to the records of No. 17-1 and No. 17-2, the amount of the corporate card used in this case from July 5, 1995 to June 17, 200, as expenses paid as restaurant meal expenses between July 5, 1995 to June 17, 200, it is acknowledged that the purpose and object of the disbursement are not expenses, and the amount of individual disbursement is from 27,225 to 10,000 won. According to the above facts of recognition, the amount of the corporate card used in this case is not verified, and it is unfair that the plaintiff appropriated it as welfare expenses for employees.

The plaintiff asserts that all of the amount of the corporate card used in the employee meeting is used for the employee meeting expenses. Accordingly, according to the records of No. 18-1 through No. 14, the plaintiff can recognize that the expenses from Jan. 23, 2000 to Feb. 24, 200 with the school meal expenses of the president or executives from 69,000 to 163,895 won are spent by the plaintiff's corporate card. However, since the target of the disbursement is the president or executives, it cannot be viewed as having the characteristics of welfare expenses for improving the working environment and improving the desire to work, and there is no other evidence to support that the amount of the corporate card used in the corporate card used in the employee meeting, etc., the plaintiff's above assertion is without merit.

Therefore, it is legitimate for the Defendant to determine the amount of the corporate card used in this case as Contact expenses, not welfare expenses.

3) The cultural project cost of the instant case

According to the statement in Eul evidence 29-3, since the cultural project cost of this case is 46 times in total, it can be acknowledged that it is 21 times in total with meal expenses, etc., 9 times in total after holding various golf competitions, such as golf games, and 46 times in total, 9 times in place after holding the ○○ film event, 7 times in place with meal expenses, and 9 times in place of music, etc., 9 times in place of music, etc., 9 times in place of music, etc., 9 times in place of music, etc., and 9 times in place of music, etc., 5 times in place of music, etc., the above 46 times in which sports players or clubs gather, or events incidental thereto are carried out, and it is difficult to view that the plaintiff's cultural project cost of this case is essential to provide meals to persons concerned or persons related to the above scambling, etc., and thus, it is difficult to see that the plaintiff's cultural project cost of this case is an essentially related to the plaintiff's cultural event.

(3) Bad debt tax amount of this case

(A) Relevant statutes

[Valued Tax]

Article 17-2 (Deduction of Bad Debt Tax Amount)

(1) Where an entrepreneur supplies goods or services subject to the imposition of value-added tax, and where the whole or part of credit account receivable or other sales claims (referring to those containing value-added tax) related to the supply of the relevant goods or services cannot be recovered from bad debts due to the bankruptcy, compulsory execution or other causes as prescribed by the Presidential Decree, the amount calculated by the following formula (hereinafter referred to as the " Bad debts tax amount") may be deducted from the output tax amount for the taxable period whereto belongs the date when the bad debts became final and conclusive: Provided, That where the relevant entrepreneur recovers the whole or part of bad debts amount, the bad

Bad debt tax amount = bad debt amount = 10/110

[former Enforcement Decree]

Article 63-2 Scope of Tax Credit for Bad Debt (amended by Presidential Decree No. 15103, Jul. 1, 1996)

(1) "Cases prescribed by Presidential Decree, such as bankruptcy, compulsory execution and others" in Article 17-2 (1) of the Act means any of the following cases:

5. Other similar reasons as determined by the Ordinance of the Prime Minister.

Article 63-2 Scope of Tax Credit for Bad Debt (amended by Presidential Decree No. 15973, Dec. 31, 1998)

(1) "Cases prescribed by Presidential Decree, such as bankruptcy, compulsory execution and others" in Article 17-2 (1) of the Act means any of the following cases:

6. Where six months have passed from the date on which the default of checks or bills occurred: Provided, That the case where the enterpriser concerned establishes a mortgage on the property of the debtor shall be excluded; and

Article 63-2 Scope of Tax Credit for Bad Debt (amended by Presidential Decree No. 17041, Dec. 29, 2000)

(1) "Cases prescribed by Presidential Decree, such as bankruptcy, compulsory execution and others" in Article 17-2 (1) of the Act means any of the following cases:

6. Where six months have passed from the date on which the default of checks or bills occurred: Provided, That the case where the enterpriser concerned establishes a mortgage on the property of the debtor shall be excluded; and

(B) Determination

As seen earlier, inasmuch as the agreement entered into between the Plaintiff and the advertising branch and the voluntary waiver of the claim based on the right to collateral security, etc. to secure this, it is not acknowledged as bad debt, the deduction of part of the amount of bad debt from the output tax amount on the premise that it is bad debt cannot be allowed.

Therefore, it is legitimate that the defendant denied the deduction of the output tax amount of the bad debt tax of this case. Therefore, this part of the plaintiff's assertion is without merit.

(4) Foreign advertising service fees of this case

(A) Relevant statutes

[Valued Tax]

Article 6 Supply of Goods

(5) In selling and buying goods on consignment or through an agent, the consignor or the principal shall be deemed to have supplied or received goods directly: Provided, That the same shall not apply if the consignor or the principal is not identified.

Article 11 Application of Zero Tariff Rates

(1) zero tax rates shall apply to the supply of goods or services falling under any of the following subparagraphs:

4. Goods or services for earning foreign currency other than those as referred to in subparagraphs 1 through 3, which are prescribed by the Presidential Decree.

[former Enforcement Decree]

Article 26 Scope of other goods, services, etc. to earn foreign exchange (amended by Presidential Decree No. 15973, Dec. 31, 1998)

(1) The goods or services for earning foreign currency as provided in Article 11 (1) 4 of the Act shall be those as provided in the following subparagraphs: Provided, That in the case of subparagraphs 1 and 1-2, the real estate lease services supplied by a nonresident or a foreign corporation in Korea, and other goods or services supplied in Korea and prescribed by the Ordinance of the Prime Minister shall be excluded

1. Goods or services supplied to a nonresident or foreign corporation having no domestic place of business in the Republic of Korea, which are paid in Korean currency at a foreign exchange bank;

Article 26 Scope of Other Goods, Services, etc. for Foreign Exchange (amended by Presidential Decree No. 17041, Dec. 29, 2000; Presidential Decree No. 16661, Dec. 31, 199; Presidential Decree No. 16661, but the following was not amended):

(1) Goods or services for earning foreign currency referred to in Article 11 (1) 4 of the Act shall be those as prescribed in the following subparagraphs: Provided, That in the case of subparagraphs 1 and 1-2, the real estate lease services supplied by a nonresident or foreign corporation in Korea and other goods or services supplied in Korea, which are prescribed by the Ordinance of the Ministry of Finance and Economy, shall

1. Goods or services supplied to a nonresident or foreign corporation having no domestic place of business in the Republic of Korea, which are paid in Korean currency at a foreign exchange bank;

Article 58 Delivery of Tax Invoice in Case of Commission Sales, etc.

(1) In the case of sale by consignment or agent, when the trustee or agent delivers goods, the tax invoice shall be delivered to the trustee or agent, and when the truster or the principal delivers directly the goods, the truster or the principal may deliver the tax invoice. In this case, the registration number of the trustee or agent shall be stated additionally.

(2) In cases of purchase by consignment purchase or by agent, a supplier shall issue a tax invoice to the truster or a person supplied with the principal. In such cases, the registration number of the trustee or agent shall be stated additionally.

(B) Facts of recognition

The following facts are not disputed between the parties, or are acknowledged in full view of the purport of Gap evidence 5, Gap evidence 7-1 through 16, Gap evidence 23-1, 2, Gap evidence 24-1 through 12, Gap evidence 25-1 through 5, Gap evidence 27-1 through 6, Gap evidence 28, Gap evidence 29-1 through 4, Gap evidence 30-1 through 36, Gap evidence 31-1 through 46, Gap evidence 32-1 through 33-7, Gap evidence 34-1 through 9, Gap evidence 35-1 through 5, Gap evidence 36-1 through 10, Gap evidence 37-5, Gap evidence 1 through 5-5, Gap evidence 37-5.

1) The Plaintiff entered into an advertising agency contract with the advertising agency, including ○○, and the Plaintiff’s newspaper to entrust the agency business of the advertising service contract with the advertising agency. The main contents are as follows.

Article 1 (Purpose) "A" (referring to the plaintiff; hereinafter the same shall apply) recognizes "B" (referring to an advertising substitute; hereinafter the same shall apply) as an agency with qualifications for newspaper advertising agency, and aims to specify the responsibilities of "A" and "B".

Article 3 (Vicarious Execution and Advertisement of Business)

(1) A shall carry on the advertisement business of the media provided for in Article 2 on behalf of A, only to an advertiser who has entered into an advertisement agency contract with B, and receive the advertisement fees required therefor from the advertiser.

(2) Eul shall trust the received advertisement to Gap, and Gap shall faithfully publish it.

(3) If the content and form of an advertisement which he/she has received violates relevant Acts and subordinate statutes, ethics and morals, public morals, etc., or is not in conformity with Gap's death, manufacturing policy, and business standards, Gap may demand the advertisement to refuse, suspend, or change the advertisement, and all responsibilities for the issue arising therefrom shall be imposed on the advertisement.

Article 4 (Determination of Advertising Fees) A shall be determined by consultation between A and B on the basis of the fees set by Party A.

Article 5 (Payment of Advertising Fees)

(1) A shall claim B for the sum of the advertising fees inserted on trust from B as of the last day of each month, and B shall pay B, by cash, cashier's checks, or bank bills, the advertising fees for which are requested, by the end of the following month.

(2) In principle, an advertiser shall make an endorsement of the bill issued by him/her and an agent, and the settlement date of the bill shall be from 1st to 90th of the following month after the publication of the bill.

(3) Where non-payment of promissory notes paid as advertising fees is to be issued, Eul shall be liable for such non-payment and shall be paid in cash immediately.

VI. (Payment Guarantees)

(1) B shall, for the guarantee of payment of advertising fees, submit to A one of the following collateral conditions:

◇ 은행지급보증서

◇ 보증보험증권

Article 7 (Issuance of Tax Invoice)

(1) B shall issue a tax invoice to an advertiser by no later than the 10th of the following month of publication of an advertisement on all the advertisements he/she vicariously.

Article 8 (Fees for Advertisement Agency)

(1) The amount of advertising fees for an advertising agency shall be 15% of the advertising fees.

(2) If the settlement date referred to in the proviso to Article 5 (2) exceeds 90 days, the agency fee shall be deemed nonexistent.

(3) A shall recognize advertising agency fees only when he/she has fulfilled Article 6 (Payment Guarantees).

2) After concluding an advertising contract with an advertiser, the advertising agency has decided upon the date, size, frequency, unit price, and other matters necessary for the publication of the advertisement to provide the Plaintiff as the advertising media company, and accordingly, the Plaintiff has inserted the advertisement.

On the other hand, according to the advertising agency contract entered into between the plaintiff and the foreign advertiser (Sony International Republic of Korea) by ○○○, a company that conducts advertising agency business with the foreign advertiser (Sony International Republic of Korea), (1) a foreign advertiser conducts the entire advertising business on behalf of the company, (2) a foreign advertiser receives the sales agency fee from the enforcement media (referring to the plaintiff), and (3) a foreign advertiser is agreed to pay the advertising production fee to ○○.

3) If a foreign advertiser’s advertisement is inserted in the Plaintiff’s newspaper, the advertising agency claims and received advertising fees from the advertiser, and then, in the event of an exclusive advertising agency event under the advertising agency contract or advertising agency contract as seen above, the advertising agency paid part of the advertising fees to the Plaintiff, and in the event of a general advertising agency, he paid the remainder other than the advertising agency fee (15%) from the foreign advertiser. In this case, the advertising agency issued and issued a tax invoice for the advertising fees to the Plaintiff as the trustee, the Plaintiff as the supplier, and the Plaintiff received a tax invoice from the foreign advertiser as to the fees separately paid by him.

4) Accordingly, the Plaintiff did not directly issue and issue a tax invoice to a foreign advertiser in the case of a foreign advertisement which was awarded through the advertising counter event, but instead, it reported and paid the value-added tax by applying the zero-rate tax rate to the foreign advertiser instead of performing accounting management, including its own sales.

At this time, the advertising agency did not issue a separate tax invoice by deeming that the zero-rate tax rate is applied to the advertising price.

5) The details from the second period of 196 to the second period of 200, which was applied by the Defendant to the general tax rate of 200 shall be 218,765,363 won, the first period of 1997, the second period of 1997, the second period of 40,909,705 won (the Plaintiff reported 40,873,705 won), the first period of 198, the first period of 1998, the amount of 11,065,00 won, the second period of 205,132,950 won, the second period of 1996 to 200 won, the second period of 1,50,000 won, the second period of 1,50,000 won, the second period of 1,50,000 won, the second period of 1,50,000 won, the second period of 205,800 won

(C) Determination

1) Quasi-Commission agent refers to a person who engages in an act other than selling and buying on another person's account under his/her own name, and Article 113 of the Commercial Act applies mutatis mutandis to quasi-Commission agent (Article 113 of the Commercial Act). Therefore, as a commission agent is a party to a legal relationship under his/her own name and is engaged in a business (Article 102 of the Commercial Act), the principal cannot exercise his/her right to demand directly from the other party; goods, securities, or claims acquired by the commission agent due to a commission agency are deemed as the principal's ownership or bonds in relation between the principal and the commission agent and the commission agent (Article 103 of the Commercial Act); and the commission agent is liable for performance to the principal if the other

In light of all the circumstances such as the agency relationship between the plaintiff and the advertising agency, the method of paying advertising fees, corporate accounting and settlement of accounts, etc., if the advertising agency operates the advertising business on behalf of the plaintiff, the advertising agency operates the advertising business on behalf of the plaintiff, the advertising agency directly claims the advertising fees consulted with the plaintiff after publishing the advertisement, the agency fees paid by the plaintiff out of the total amount of the advertising fees received from the advertiser are paid by the plaintiff, and the agency fees paid by the plaintiff in the process are appropriated as its own income and the remainder of the advertising fees reverted to the plaintiff are not appropriated as its own income, and the advertising fees are not appropriated as its own income, etc., the advertising agency is a quasi-agent who provides the advertising services in its name

2) Meanwhile, Article 6(5) of the Value-Added Tax Act provides that a truster or principal shall be deemed to have supplied or received goods on consignment or by proxy. The purport of Article 6(5) is to impose value-added tax on a person to whom the economic effect from the supply of goods substantially accrues in accordance with the principle of substantial taxation. This is the same as the case of the supply of services. Thus, the Plaintiff shall be deemed to have directly supplied services even in the case of the provision of advertising services by an advertising agency, a quasi commission agent,

In addition, the commission agent's business is operated on his principal's account, and the commission agent's goods, securities, or bonds acquired on commission by the commission agent are deemed to be the principal's ownership or bonds in relation to the principal and the commission agent's relationship between the principal and the commission agent. Thus, the advertising price deposited by a foreign advertiser in a foreign exchange bank is the principal's ownership. Thus, even if the advertising agent receives the advertising price in Korean won from the foreign exchange bank and pays it to