In a case where a corporation operating a real estate business sells a private house site, whether such land becomes a non-business land (negative)

In Article 112-2 (1) of the Local Tax Act, the term “when a corporation becomes a non-business land” means when the acquired land becomes a land which is not directly used for a corporation’s own purpose, and its own purpose refers to the purpose of the law or the corporation’s articles of incorporation. Thus, even if a corporation including a real estate business as a object of business under the articles of incorporation sells the land acquired as a site for new construction of a house because it is a real estate directly provided for a corporation’s purpose business, it does not constitute a case where a corporation becomes a non-business land of a corporation.

Articles 112-2 (1) and 112 (2) of the Local Tax Act

Dong Asia Construction Industry Corporation (Attorney Lee Young-gu, Counsel for defendant-appellant)

Attorney Park Jae-hoon, Counsel for the head of Jung-gu Seoul Metropolitan Government

Seoul High Court Decision 79Gu156 delivered on February 26, 1980

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal are examined.

According to the facts duly admitted by the court below, the plaintiff is a corporation whose own purpose is the acquisition of real estate and its own business. The plaintiff acquired three parcels of land of this case as the plaintiff's new construction site for the plaintiff's private house, and it cannot continue construction due to the shortage of business funds and sold the land of this case without gains from the non-party 1, 112-2, 112 (2) of this case's non-business purpose for non-business purpose. The plaintiff's land of this case can be used for non-business purpose for non-business purpose for non-business purpose without any justifiable reason for non-business purpose for non-business purpose. The plaintiff's land of this case can be used for non-business purpose for non-business purpose for non-business purpose for non-business purpose for non-business purpose without any justifiable reason for non-business purpose for non-business purpose for non-business purpose of this case's acquisition and holding of land of this case, which is non-business purpose for non-business purpose for non-business purpose.

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

Justices Lee Jong-soo (Presiding Justice)