[1] The scope of acquisition price under Article 82-3 of the former Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 14041 of Dec. 31, 1993)

[2] Whether the obstacle compensation and resettlement compensation paid at the time of land acquisition under the Public Land Expropriation Act is included in the tax base amount of the land acquisition tax

[1] The "acquisition price" under Article 82-3 of the former Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 14041 of Dec. 31, 1993) means that the cause of payment occurs or becomes final and conclusive prior to the date of acquisition of a taxable object, and it can be deemed that not only the price of the object itself (direct costs) but also the price of the object itself (such as acquisition fund, design cost, etc.) but also the equivalent acquisition procedure cost (such as purchase fund, design cost, etc.) is included in indirect cost. However, if it is related to an object or right not subject to acquisition and thus it cannot be deemed that it is the price of the object itself, it shall not be considered that the cause of payment occurred or becomes final and conclusive prior to the time of acquisition of the object, but it shall be included in the acquisition price of the object, and it shall not be considered as the acquisition tax base.

[2] The compensation, such as obstacles compensation and moving expenses, paid at the time of land acquisition under the Public Land Expropriation Act, shall not be paid at the price of the land itself in acquiring the land subject to taxation, but shall not be included in the acquisition price, which is the tax base of the land, since the payment cause for the goods or rights other than the object of acquisition occurs or becomes final and conclusive in acquiring the land, even if the land was paid or paid prior to the time of acquisition of the land to other residents

[1] The proviso of Article 111(2), Article 111(3), Article 111(5)3, and Article 111(7) of the Local Tax Act; Articles 82-3(2) and 73(8) of the former Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 14041 of Dec. 31, 1993) / [2] Articles 82-3(2) and 73(8) of the former Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 14041 of Dec. 31, 1993)

Korea Electric Power Corporation (Attorney Choi Young-soo, Counsel for defendant-appellant)

Ha-dong Gun (Attorney Kim Jong-hwan, Counsel for defendant-appellant)

Busan High Court Decision 94Gu4400 delivered on February 17, 1995

The appeal is dismissed. The costs of appeal are assessed against the defendant.

The defendant's attorney's grounds of appeal are examined.

Article 111 (5) 3 of the Local Tax Act provides that "acquisition price shall be proved by what is prescribed by the Presidential Decree in the corporate accounting books." Article 111 (7) of the same Act provides that "acquisition price shall be determined by the Presidential Decree." Article 82-3 (2) of the Enforcement Decree of the same Act (amended by the Presidential Decree No. 14041 of December 31, 1993) provides that "The acquisition price shall be determined by the Presidential Decree." "The acquisition price shall be determined by the Presidential Decree." Article 82-3 (2) of the same Act provides that "any expenses paid or to be paid to the other party or third party for the acquisition of the object concerned (including interest, introduction, design expenses, etc. used for the acquisition of the object of taxation under Article 16 subparagraph 11 of the Corporate Tax Act) shall be included in the price of the object of acquisition, other than the time of acquisition or the other party to the object of taxation, and it shall not be deemed that the object of acquisition price is its direct or indirect expenses for the object of acquisition.

In this case, among the expenses paid or to be paid by the Plaintiff corporation to landowners, etc. in acquiring the instant land through consultation or expropriation under the Public Land Expropriation Act or the Land Expropriation Act, land compensation shall be included in the acquisition price of the instant land. However, even if the Plaintiff made or paid to residents, etc. of the opposite party to the instant land to acquire the instant land, even if the Plaintiff did not pay or pay the acquisition price of the instant land to the other party to the transaction in order to acquire the instant land, the compensation, such as the above obstacles compensation and moving expenses, shall not be included in the acquisition price of the instant land, which is subject to taxation, since the cause of payment for the instant land acquisition, not in itself, but in the acquisition of the instant land, the cause

Although there are some deficiencies in the reasoning of the court below's judgment, the conclusion that compensation such as obstruction compensation or moving expenses in addition to compensation for the land itself does not include the acquisition price, which is the tax base of the acquisition tax for the land in this case is just, and there is no error of law by misapprehending the legal principles on the acquisition price prescribed in the above provision of the law.

Therefore, the appeal is dismissed and all costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Chocheon-sung (Presiding Justice)