Daejeon High Court 2011Nu1106 (Law No. 29, 2011)

early 2010 to 3013 ( November 10, 2010)

Provisions on reduction or exemption of long-term rental houses shall not violate the principle of no taxation without law.

It is reasonable to interpret the provisions on the reduction or exemption of long-term rental houses as the provisions on the reduction or exemption of long-term rental houses to apply only to long-term rental houses meeting the requirements for reduction or exemption of long-term rental houses, and it cannot be deemed as violating the principle of no taxation without law or constitutional equality

2011Du26053 Revocation of Disposition of Imposing capital gains tax

Song AA

The Director of the National Tax Service

Daejeon High Court Decision 2011Nu1106 decided September 29, 201

The appeal is dismissed.

The costs of appeal are assessed against the Plaintiff.

The grounds of appeal are examined.

1. As to the assertion of violation of the no taxation without law

In light of the principle of no taxation without law, the interpretation of tax laws and regulations shall be interpreted in accordance with the text of the law, barring any special circumstance, and it shall not be extensively or analogically interpreted without any reasonable reason. In particular, the strict interpretation of the provision that can be clearly viewed as a preferential provision among the requirements for reduction and exemption accords with the principle of fair taxation (see, e.g., Supreme Court Decisions 2002Du9537, Jan. 24, 2003; 2008Du7830, Oct. 23, 2008). Examining the reasoning of the lower judgment in light of the aforementioned legal principles and records, the lower court’s reasoning is without merit, and it is reasonable to interpret that the rental house under Article 97(2) of the former Restriction of Special Taxation Act (amended by Act No. 9921, Jan. 1, 2010; hereinafter “Special Taxation Act”) means only the long-term rental house under paragraph (1) of the same Article.

2. As to the assertion of violation of the constitutional equality principle

For the reasons indicated in its holding, the lower court determined that Article 97 of the Restriction of Special Taxation Act, which provides special cases of imposition of capital gains tax on part of rental housing, does not violate the principle of equality under the Constitution in light of its legislative purport, etc. In light of relevant legal principles and records, the lower court’s determination is justifiable, and contrary to what is alleged in the grounds of appeal,

3. Conclusion

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