The extent to which the business transferee bears the secondary tax liability.

Under the provisions of Article 41 of the Framework Act on National Taxes, the national tax, additional dues and disposition fee for arrears for which the transferee of the business is liable for the secondary tax liability is the property of the transferor or the transferor's business related to the business which is already imposed at the time of transfer of the business.

Article 41 of the Framework Act on National Taxes

Supreme Court Decision 81Nu149 delivered on February 9, 1982, 84Nu589 delivered on February 26, 1985

[Defendant-Appellee] Plaintiff et al., Counsel for defendant-appellee

The director of the tax office

Seoul High Court Decision 84Gu1263 delivered on August 23, 1985

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

Under Article 41 of the Framework Act on National Taxes, it is reasonable to interpret that the transferee of a business is liable to pay the taxes already imposed at the time of the transfer of the business, either because the transferee’s property is the transferor or that the transferor is related to the business in which the transferor is engaged (see Supreme Court Decision 81Nu149 delivered on February 9, 1982).

The court below is just in holding that the value-added tax, Class A earned income tax, and defense tax of this case are taxes imposed on the above non-party who was transferor after the plaintiff acquired the two uniforms that he had operated from the non-party, and since they were not taxes imposed at the time of transfer, they cannot be imposed on the plaintiff who was transferee.

Therefore, the appeal in this case is dismissed by the assent of all participating judges, and the costs of appeal are assessed against the losing party, since there is no need to determine the remaining grounds for appeal (the judgment of the court below that the plaintiff does not constitute the secondary taxpayer because it is not the business transferee who comprehensively takes over the rights and obligations of the transferor, and therefore, it is so decided as per Disposition.

Justices Yoon Il-young (Presiding Justice) Gangwon-young Kim Young-ju