§ 8. Interpretation of the calculation documents of a corporation

The balance sheet to be publicly announced by a corporation pursuant to Article 40(2) of the Corporate Tax Act (Act No. 1673) must be in accordance with the Act on Documents, etc. for Calculation of Stock Companies, which is the Cabinet Order (Ordinance No. 1221) enacted pursuant to Article 5 of the Addenda of the Commercial Act. The purport of Article 8 of the Act on Documents, etc. for Calculation of Stock Companies is to be interpreted to be that the accounts prescribed in the former part of the same Article must be classified and kept, and that it may be further subdivided by the latter part of the same Article, and thus, it does not purport that the accounts prescribed in the former

Article 40 of the Corporate Tax Act, Article 2 of the Addenda of the Commercial Act, Article 8 of the Regulations on Accounting Documents, etc. of the Jeju City Companies

November 24, 1970, 70Nu133 decided Nov. 24, 1970 (Supreme Court Decision 9298 decided Nov. 92, 199; Supreme Court Decision 18No371 decided Dec. 71, 199; Decision 8(1)778 decided Dec.

Korea Electric Cable Corporation

Head of the Nowon-gu Tax Office

Supreme Court Decision 70Nu133 Delivered on November 24, 1970

The plaintiff's claim is dismissed.

All litigation costs shall be borne by the plaintiff.

The Defendant’s disposition of imposition of KRW 7,982,80,00 as of July 16, 1968 against the Plaintiff was revoked.

Litigation costs shall be borne by the defendant.

The fact that the Defendant imposed a tax amount of KRW 7,982,80 on the Plaintiff as of July 16, 1968 under Article 45(1)4 of the Corporate Tax Act, which was in force at that time on the grounds that the Plaintiff failed to make a lawful public announcement of the balance sheet and income statement for the business year 1965, which was ending from January 1, 1965 to December 31, 1965, does not conflict between the parties.

According to Article 45 (1) 1 of the Corporate Tax Act, in which the plaintiff is obliged to make a public notice of the balance sheet and income statement under Article 40 (2) of the same Act, if the plaintiff fails to fulfill his obligation to make a public notice of the balance sheet and income statement under Article 40 (2) of the same Act, the additional tax is imposed without notice. Article 40 (1) of the same Act provides that the corporation must keep and record trade books under Article 29 of the Commercial Act and Article 30 of the Commercial Act. Article 40 (2) of the Corporate Tax Act provides that the corporation shall order the corporation to keep and record daily records under Article 29 of the Commercial Act and the list and balance sheet under Article 30 of the Commercial Act, and shall make a public notice of the balance sheet and income statement in daily newspapers within the period under Article 27 of the Corporate Tax Act. Thus, it is reasonable to interpret that the balance sheet under Article 40 (2) of the same Act is the same as the balance sheet under paragraph (1) of the same Article.

Therefore, the balance sheet to be publicly announced by the corporation pursuant to Article 40 (2) of the Corporate Tax Act shall be based on the "case concerning accounting documents of a stock company", which is each Decree enacted pursuant to Article 5 of the Addenda of the Commercial Act (Ordinance No. 1221). According to Article 8 of the above "Case concerning Accounting Documents, etc. of a stock company", the former part provides that "the title of the account shall be classified as follows." The latter part provides that "the title of the balance sheet shall be subdivided into appropriate accounts as prescribed by the enterprise's necessity of the business," and 1. (b) current assets and intangible fixed assets (1) intangible fixed assets (2). (b) current assets and investment assets (3) current accounts. (b) current liabilities. (b) The capital of the fixed debts (1. (b) The purpose of the latter part of Article 8 of the Corporate Tax Act is to classify profits and losses reserve funds for each of the above Article 48 of the Corporate Tax Act with the total operating profits and losses statement stated in the preceding part of Article 6.

According to Gap evidence Nos. 1, 5 (written copy of the company register), 6 (written request for re-inspection and ruling), and 1, 5 (written request for re-examination) and 6 (written request for re-examination), the plaintiff company announced the balance sheet and profit and loss statement for the business year 1965 to the Seoul Examination on February 22, 1966 as the method of public notice determined at the time of registration of the plaintiff company incorporation. In such public notice, income statements are listed in Article 46-3 of the Enforcement Decree of the company concerned, and the balance sheet is divided into the assets account and capital and liability account as the account item, but the balance sheet is divided into the assets account, fixed assets, deferred assets, and total amount into the capital and liability account, which can be recognized that only is the capital, earned surplus, current liabilities, fixed liabilities, and total amount, so this public notice on the above recognition on the balance sheet can not be seen as a public announcement because it is listed in the former part of Article 7 of the "Case on Calculation Documents of the company" in the above.

If the plaintiff company did not perform the duty of public notice on the balance sheet, it is legitimate that the defendant imposed a non-public notice penalty tax on the plaintiff on the ground that the plaintiff company did not perform the duty of public notice on the legitimate balance sheet, and the plaintiff does not clearly dispute the tax amount. Therefore, the plaintiff's claim on the principal lawsuit

This is dismissed, and all costs of the lawsuit are assessed against the plaintiff who has lost the total costs of the lawsuit as per Disposition.

Judges Sick-su (Presiding Judge)