Review Division 2009-0099 ( October 27, 2009)

Whether a tax invoice received by a business operator or operator is a real transaction

Since it is judged as a processing tax invoice received without remodeling of private rain and pipeline facilities in order to appropriate necessary expenses for capital gains tax, a disposition that deducts input tax amount is legitimate.

The contents of the decision shall be the same as attached.

○ Kim

Head of Changwon Tax Office

1. The plaintiff's claim is dismissed.

2. The plaintiff shall bear the litigation costs.

On December 1, 2008, the Defendant revoked the imposition of value-added tax of KRW 20,789,990 against the Plaintiff on December 1, 2008 (the claim of the complaint on December 10, 2008 seems to be an error).

1. Circumstances of the disposition;

A. On February 29, 2008, the Plaintiff received one sheet of tax invoice (hereinafter referred to as the “tax invoice of this case”) comprised of wholesale, construction, and service business from the Gangwon-si, which was conducted wholesale, construction, and service business from ○○○○○○, 72-9, 72-9, and 201, with the trade name of △△△△△△△, △△△△△△△, ○○○○, ○○○○○, ○○○○○, ○○○○, ○○○○, ○○○○○, ○○○○○, ○○○○, 63, 637 won, 13, 636, 363 won, and product construction cost of △△△△△△ at the time of preparation.

B. On July 25, 2008, the Plaintiff prepared a return on confirmation of the value-added tax of the first general taxable person in 2008 and submitted it to the Defendant, which read as '0 won', '13,636,363 won', '13,636,363 won', and '13,633 won'.

C. On August 8, 2008, the Defendant paid KRW 13,636,360 to the Plaintiff the value-added tax refund amounting to KRW 13,63,36,360, and thereafter, as a result of the on-site investigation conducted from August 29, 2008 to September 1, 2008, the instant tax invoice is deemed as a processed tax invoice received by the Plaintiff without remodeling and piping facility installation works of the instant private letter, and thus, the instant tax invoice is deemed as the processed tax invoice received by the Plaintiff, and the input tax amount was deducted, and the value-added tax was revised and imposed on December 1, 2008, including the additional tax, such as the submission of the total tax invoice by customer, and the additional tax on excess refund return (hereinafter “instant disposition”).

[Ground of recognition] Facts without dispute, Gap evidence Nos. 4, 5, Eul evidence Nos. 1 to 8, the purport of the whole pleadings

2. Whether the disposition is lawful;

A. The plaintiff's assertion

On January 2, 2008, the Plaintiff entered into a contract with the Gangwon-do to set the construction cost of KRW 150,000,000 with respect to the remodeling and pipeline installation works of the instant private letter. On February 20, 2008, when the Plaintiff sold the instant private letter to the Gangwon-do in KRW 600,000,000, while the construction was in progress, the Plaintiff received the instant tax invoice instead, and received it since the Plaintiff issued the instant tax invoice to pay the down payment at the time of the contract. Accordingly, the instant disposition that imposed value-added tax on the Plaintiff by deeming the instant tax invoice as due to the processing transaction is unlawful.

(b) relevant statutes;

It shall be as shown in the attached Form.

(c)a recognition;

(1) The Plaintiff operated the instant friendship and sold it to the Gangwon-do on February 20, 2008.

(2) According to the sales contract made between the Plaintiff and the Gangseo-gu, the sales price of KRW 600,00,000 is KRW 150,000,000 on the contract date, and KRW 50,000,000 on February 26, 2008, and KRW 400,000 on the remainder of February 29, 2008, respectively, shall be paid respectively. Meanwhile, the special terms of the above sales contract include a special contract under the above sales contract, and Gangnam-A may commence an internal repair after the payment of the intermediate payment, and the down payment, which is the cost of construction work, such as the instant rain, internal remodeling, and piping-A, the contractor, at the time of the Plaintiff’s transfer of income tax, shall be treated as the beneficial cost as deemed necessary expenses, and at the time of the Plaintiff’s request, it shall be considered as the delivery as security data.

(3) In addition, according to the letter of confirmation drawn up in the name of Gangseo on February 20, 2008, in the instant letter or sales contract, 150,000,000 won as the down payment shall be paid to the seller on February 20, 2008. However, in relation to the instant letter or internal repair, this converted the sales amount into the down payment in the form of offset disposal, which is to be received from the seller, into the down payment, and the Plaintiff shall pay the purchase amount of KRW 480,00,000,000, in addition to the down payment, and as of February 29, 2008, according to the letter of confirmation drawn up on February 29, 2008, it is not clear whether the Plaintiff has paid the tax and public charges, such as the management expenses, etc. that the Plaintiff would pay, as of the remaining date, and therefore, the Gangseo agreed to deposit the remaining sales amount in a lump sum and make settlement of deposit by March 2008.

(4) On February 29, 2008, the instant private loan was completed in the name of the Gangwon-do, and the establishment registration of a mortgage was completed in the name of the agricultural cooperative branch office ○○○○-si, agricultural cooperative with the maximum debt amount of KRW 540,000,000 on the same day as the obligor with the Gangwon-do as the obligor.

(5) On the other hand, as of January 2, 2008, the Plaintiff and Gangseo-A entered into a construction contract of KRW 150,000,000 of the total construction cost (in accordance with the degree of construction in the separate construction sector, the Plaintiff and Gangseo-A agreed upon and made payment for the Initial Corporation) with respect to the instant letter of contract with the Plaintiff, along with a written estimate for setting the unit price by item, such as pipeline construction, remote area sales, boiler pipeline construction, and stove construction, and Gangwon-A issued the instant tax invoice to the Plaintiff, stating that the items were 150,000,000,000 of the total construction cost of △△△△△, supply value, and tax amount.

(6) During the tax investigation procedure commenced by Gangseo-A pursuant to the fact that it did not report the output tax amount related to the tax invoice of this case, the plaintiff started on February 25, 2008, and completed on March 6, 2008. The construction content was the replacement of the internal boiler boiler team and the replacement of the drainage pipe, such as 1,00, soup, soup, 200, and 200,000,000,000 won were issued on February 20, 2008, and 200,000,000 won were issued on February 29, 2008, and 200,000 won were issued on 20,000 won. The tax invoice of this case was issued on 200,000 won as 0,000 won, and was issued on February 29, 200,000 won and 20,000 won.

(7) In addition, Gangwon appeared as a witness in this court, and prepared a sales contract by withdrawing the purchase price in order to obtain the instant private loan as collateral, and made a false statement to the effect that the instant tax invoice was issued falsely.

(8) The Plaintiff asserted that the construction was actually conducted under the above construction contract through a request for examination and objection against the instant disposition, and the procedure for pleading in the instant case, and submitted a confirmation letter to the effect that the record was completed for 20 days after February 26, 2008 at the work log of the management office. However, the head of the building management office, the building management office, made a statement to the effect that the date on which the record was recorded as shot or repair, as it appears to be a document in the form of a joint form, not an official record of the management office, which is the official record of the management office, which is the Plaintiff’s work log written by the Plaintiff through the procedure for filing an objection, was confirmed to be August 2008 as the result of the Plaintiff’s local business trip of the Busan Regional Tax Office, which was the applicant for objection, with respect to the replacement of the stove team boiler of the underground boiler room that was written by the Plaintiff during the said tax investigation process.

[Ground of recognition] Facts without dispute, Gap evidence 8, 10, 12, Gap evidence 11-2, Eul evidence 9-17, Eul's testimony, and the purport of the whole pleadings

D. Determination

Comprehensively taking account of the above facts, the Plaintiff: (a) sold the instant private letter to the Gangwon-do in KRW 480,00,000; and (b) at the request of the Gangseo-A, which requires a sales contract with the purchase price of KRW 600,000,00 in order to obtain a loan equivalent to the amount necessary for the payment of the purchase price as security; (c) concluded a false construction contract with the purchase price of KRW 600,000 in order to deal with the issue of capital gains tax related to the excess amount and related thereto; (d) concluded a false construction contract for the purpose of offsetting the construction cost and the excess amount under the pretext of the instant private letter or internal repair work; and (e) received a tax invoice for the purchase of the construction cost along with the documents such as the construction contract for the said internal repair work as necessary expenses to be deducted from the transfer price; and (e) made the date of February 20, 2008 in a false construction contract with the construction price of KRW 150,000,000, and received the tax account statement.

If there are circumstances, it is reasonable to deem that the instant tax invoice was prepared as a processing without actual transaction. Therefore, the instant disposition based on such premise is legitimate, and the Plaintiff’s assertion is without merit.

3. Conclusion

Therefore, the plaintiff's claim is dismissed as it is without merit. It is so decided as per Disposition.