The gift tax of this case is the corresponding tax, and the additional tax is also included in the corresponding tax as national tax, so priority over the claim secured by the right to collateral security established prior to the statutory

Article 47 (2) of the Framework Act on National Taxes provides that penalty taxes shall be the items of the relevant national tax stipulated by the relevant obligation; Article 4 of the National Tax Collection Act provides only the "national tax" and "additional tax" with the priority of collecting delinquent amount under Article 4 of the National Tax Collection Act; and Article 47 (2) does not separately list penalty taxes, including

2014Gaz. 203604 Demurrer

XPP LLC

Korea

on January 28, 2014

The plaintiff's claim is dismissed.

Litigation costs shall be borne by the plaintiff.

1. Basic facts

A. Seoul ○○○○○○○-dong, Seoul, ○○○○○○○ apartmentx 1xx 7xxxb (hereinafter “the instant real estate”) was originally owned by Kimbb. On August 20, 207, the instant real estate was donated to Kima on the ground of the donation made on August 20, 207, and the registration of ownership transfer was completed on the ground of the donation made on August 20, 207. On November 27, 2008, Kima completed the registration of ownership transfer with respect to the instant real estate by the mutual savings bank A, a mutual savings bank, on the basis of the maximum claim amount, KRW 38,00,000,000, and the debtor Kima’s establishment of a mortgage with respect to the instant real estate.

B. On the other hand, on August 1, 2012, the director of the regional tax office affiliated with the Defendant determined KRW A as principal tax, KRW B of penalty tax due due to failure to report, and KRW C of additional dues as gift tax and notified the payment period to Kima on August 31 of the same year. After that, on April 16, 2013, BB savings bank transferred the above right to collateral security from a mutual savings bank A, and on April 26, 2013, filed an application for a voluntary auction of real estate proceeds based on the above collateral security, with the Seoul Western District Court 2013 9xxx, and the procedure of voluntary auction on the instant real estate was commenced. In the instant auction procedure, the Defendant, which was subject to taxation of the instant real estate and issued KRW 1,200,000,000,000,000,000,000,0000,000 won to the Defendant, which is the first to be distributed to Kima, as dividend payment of KRW 14,0.

2. Judgment on the parties’ assertion

A. The parties' assertion

(1) The Plaintiff’s priority principle under Article 35(1)3 of the Framework Act on National Taxes should be limited to national taxes and additional dues imposed on the real estate itself in light of the language, text, and purport of the provision of the Act. Since the penalty taxes for failure to report and payment are not included in national taxes, the pertinent tax is not imposed on the real estate itself. Therefore, the Plaintiff’s distribution of the dividend amount to the Defendant for KRW A (2 won of penalty taxes for failure to report + penalty taxes for failure to report) equivalent to penalty taxes is unreasonable

(2) The defendant asserts that the gift tax in this case is the pertinent tax, and the additional tax is also included in the pertinent tax as a national tax, and thus, it takes precedence over the claim secured by the right to collateral security established prior to

B. Determination

(1) Relevant provisions

(A) Article 2 (Definitions) of the Framework Act on National Taxes; 1. The term “national tax (national tax)” means any of the following taxes imposed by the State:

(a) Income tax;

(c) Inheritance tax and gift tax;

(d) Comprehensive real estate holding tax.

(e) Value-added tax;

(f) Individual consumption tax;

(g) Traffic, energy and environment tax;

(h) Liquor tax;

(i) Stamp tax;

(j) Securities transaction tax;

(k) Education tax;

4. Additional tax: 4. The term "additional tax" means an amount to be collected in addition to a tax amount calculated under the tax-related Acts in order to ensure the faithful fulfillment of obligations under the tax-related Acts: Provided, That any additional tax shall not be included; 5. The term "additional tax" means an amount to be collected in addition to the notified tax amount pursuant to the National Tax Collection Act if a national tax is not paid by the payment deadline, and an amount to be collected in addition to such amount if a payment is not made by the specified deadline after the payment deadline expires; 6. The term "expenses for disposition on default" means expenses incurred in the seizure, safekeeping, transportation and sale of property (including the commission where a sale is made by proxy) under the National Tax Collection

(1) National taxes, surcharges, or expenses for disposition on default shall be collected in preference to other public charges or other claims: Provided, That this shall not apply to any of the following public charges or other claims; 3. Where any property is sold for which the fact that the establishment of a right of lease on a deposit basis, a pledge, or a mortgage has been registered before any of the following dates (hereinafter referred to as "legal deadline") is proved, as prescribed by Presidential Decree, and any national tax or additional dues (excluding any national tax and additional dues imposed on such property) is collected from the proceeds of the sale thereof:

(1) The Government may impose penalty taxes on any person who violates any obligation under tax-related Acts, as prescribed by this Act or other tax-related Acts.

(2) Penalty taxes shall be an item of the relevant national tax under the tax-related Acts prescribing the obligation concerned: Provided, That in cases of reducing or exempting a relevant national tax, penalty taxes shall not be included in such reduced or exempted national tax.

(B) The order of priority in collecting delinquent amount under Article 4 (Order of Collection) of the National Tax Collection Act is as follows:

1. Expenses for disposition on default;

2. National taxes;

3. Additional dues.

(2) Whether the pertinent tax priority principle is applied to the additional tax

Article 35 (1) of the Framework Act on National Taxes provides that national taxes, additional dues, or expenses for disposition on default shall be collected in preference to other public imposts and other claims, while Article 35 (1) of the same Act provides that priority shall not be given to the secured claims of the right to lease on a deposit basis, pledge, or mortgage established prior to the statutory due date stipulated in subparagraph 3 of the same Article, which provides that exceptions to the principle of preference to national taxes shall be given to the above secured claims, and exceptions to the above-mentioned secured claims shall be given to the above-mentioned secured claims. Furthermore, Article 47 (2) of the Framework Act on National Taxes provides that "national taxes" shall be items of national taxes stipulated in Article 2 subparagraph 1 (Definition of National Taxes) of the Framework Act on National Taxes, and Article 47 (2) of the same Act provides that "national taxes, additional dues," "national taxes," or additional dues, which are established prior to the statutory due date stipulated in subparagraph 3 of the same Article, shall not be included in "national taxes, etc., which are subject to national taxes under each tax law.

3. Conclusion

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