Whether the registration of acquisition of a company house for employees owned by a corporation constitutes a real estate registration under Article 138 (1) 3 of the former Local Tax Act (Law No. 3174, Dec. 28, 1979) which is subject to heavy taxation (affirmative)

Real estate registration, which is subject to taxation in accordance with Article 138 (1) 3 of the former Local Tax Act (Act No. 3174 of Dec. 28, 1979), shall be deemed as a registration of acquisition of real estate which has the nature of fixed property directly and directly used for the purpose of the business by a corporation, such as an office or factory necessary for the performance of the purpose of the business. Therefore, a company company's company house for employees owned by the corporation is acquired to provide it continuously and regularly for the welfare and personnel management of the employees in charge of tracking pursuit in the performance of the business. Therefore, the acquisition registration is subject to heavy taxation.

Article 138 (1) 3 of the former Local Tax Act (Act No. 3174, Dec. 28, 1979); Article 102 (2) of the former Enforcement Decree of the Local Tax Act (Presidential Decree No. 9702, Dec. 31, 1979)

Supreme Court Decision 82Nu132 delivered on September 28, 1982

Korea Investment Trust Corporation

Head of Busan Metropolitan City;

Daegu High Court Decision 83Gu230 delivered on February 16, 1984

The judgment below is reversed and the case is remanded to the Daegu High Court.

1. According to the reasoning of the judgment below, as of January 19, 1983, the defendant established a branch office of the plaintiff company in Busan Special Metropolitan City, Jun. 5, 1975, and purchased two apartment units, which are real estate located in the Si, for the purpose of the branch office, the deputy head office, and the registration of the transfer of ownership thereof. The registration tax was paid pursuant to the general tax rate under Article 131 (1) 3 (2) of the Local Tax Act (Act No. 3174 of Dec. 28, 1979), and the above real estate registration was paid according to the general tax rate and tax rate under Article 131 (1) 3 (2) of the same Act, and its Enforcement Decree (Presidential Decree No. 9702 of Dec. 31, 1979). Thus, the court below determined that the plaintiff's business should be continuously used for the fixed real estate management of the real estate for the purpose of the plaintiff's property.

2. However, Article 138(1)3 of the Local Tax Act and Article 102(2) of the Enforcement Decree of the same Act provide for heavy registration tax on the establishment of a corporation in a large city, the establishment of a branch office or a branch office, the relocation of a branch office or a branch office into a large city, and on the real estate registration after its establishment and relocation into a branch office or a branch office, in order to prevent population expansion in a large city, and to ensure the smooth implementation of a large city. The real estate registration subject to heavy taxation refers to the registration of the acquisition of real estate which is continuously and regularly used by a corporation as an office or factory necessary for the performance of its intended business and directly for the purpose of its business (see Supreme Court Decision 82Nu132, Sept. 28, 1982). Since the company's company's company house for employees belonging to the same real estate of this case is subject to heavy taxation for the smooth implementation of its intended business in order to use the real estate for employees' welfare and personnel management.

Ultimately, the court below, unlike this opinion, shall be deemed to have committed an error of law by misunderstanding the legal principles on the acquisition of real estate subject to heavy taxation of the above registration tax, and therefore the judgment of the court below cannot be maintained as the argument is reasonable.

Therefore, the judgment of the court below is reversed and remanded, and it is so decided as per Disposition with the assent of all Justices involved.

Justices Jeon Soo-hee (Presiding Justice)