1. On May 18, 2017, the Defendant designated the Plaintiffs as secondary taxpayers of C Co., Ltd. and filed against Plaintiff A.

Details of the disposition

C Co., Ltd. (hereinafter referred to as “Nonindicted Company”) is a small enterprise under Article 7(1)2 (a) of the Restriction of Special Taxation Act (hereinafter referred to as “small enterprise”) established on March 15, 2013 for the purpose of manufacturing bedclothes, etc., which was voluntarily closed by the Defendant on May 25, 2016. Plaintiff A is a shareholder holding 48% of the shares of the Nonparty Company and the representative director, and Plaintiff B is a shareholder holding 40% of the shares of the Nonparty Company with Plaintiff’s children.

As the Defendant did not report the tax base and amount of corporate tax for the business year 2015 and did not submit the account books or other evidentiary documents necessary for calculating the amount of income, on March 7, 2017, the Defendant decided and notified the non-party company of the estimation by using standard expense rate pursuant to Article 66(1) and (3) of the Corporate Tax Act and Article 104(1)1 and 104(2)1 of the Enforcement Decree of the same Act.

On May 18, 2017, the non-party company did not pay corporate tax for the business year 2015 that was determined and notified as above. On May 18, 2017, the defendant designated the plaintiffs as the second taxpayer of the non-party company's secondary taxpayer and notified the plaintiff A of the payment of KRW 32,492,760 equivalent to the share ratio of the non-party company's non-party company's share ratio of 48%, and KRW 27,07,300 equivalent to the share ratio of the plaintiff Eul's share ratio of 40%.

On August 16, 2017, the plaintiffs appealed and filed an objection against the defendant. On October 12, 2017, the defendant recognized that the non-party company paid rent of KRW 15,00,000,00, and corrected corporate tax of KRW 61,058,70 of the non-party company's business year 2015 (including additional taxes). Accordingly, the disposition imposing corporate tax on the plaintiffs was reduced to KRW 29,308,211, and the disposition imposing corporate tax on the plaintiffs was reduced to KRW 24,423,509, respectively.