An input tax deduction for a false credit card sales slip;

Although a land owner, who is the plaintiff, was involved in all of the report of value-added tax, it should be viewed that the plaintiff bears the duty to report and pay the value-added tax and the responsibility for the failure to report.

1. The plaintiff's claim is dismissed.

2. Litigation costs shall be borne by the plaintiff.

The Defendant’s disposition of imposition of KRW 2,247,620 for the Plaintiff on July 12, 2006 shall be revoked.

1. Details of the disposition;

A. On November 21, 2001, the Plaintiff purchased one truck with 5 tons of a truck, and transferred it to ○○ Company Co., Ltd. (hereinafter “○○ Company”) and registered as a general taxable person around that time as a land owner who is engaged in trucking transport business under the name of the land owner company.

B. On behalf of the Plaintiff, ○○ Company declared and paid the Plaintiff’s input tax amount of KRW 18,460,00, the input tax amount of KRW 15,120,367, and the tax amount of KRW 33,950 on the second half-year VAT in 2002.

C. At the time of the Plaintiff’s report on the second half-year value-added tax in 2002, the Defendant imposed the instant disposition imposing the Plaintiff KRW 2,247,620 (including penalty tax 136,095, and penalty tax 750,566) of the value-added tax on March 2, 2006 by reducing the input tax amount by means of deducting the input tax amount from credit card sales slips equivalent to KRW 13,609,497, which was falsely prepared without real transactions.

[Ground of recognition] Facts without dispute, Gap evidence 1, 2 and 3, Eul evidence 1-1, 2-2, Eul evidence 2-1, 23, Eul evidence 3-3, Eul evidence 4 and 6, and the purport of the whole pleadings

2. Whether the disposition is lawful;

A. The plaintiff's assertion

The Plaintiff paid monthly admission fees to ○○ Company, which is a branch company, and paid all the taxes and insurance premiums imposed on the Plaintiff. The instant disposition that imposed each of the instant value-added taxes on the Plaintiff is unlawful, since the ○○ Company received unjustly input tax deduction using a false credit card sales slip on behalf of the Plaintiff while filing and paying the value-added tax on behalf of the Plaintiff, and the Plaintiff did not know such fact at the time.

(b) Related statutes;

It is as shown in the attached Form.

(1) Since the Plaintiff is a business operator who completed business registration as a general taxable person, the obligation to report and pay the value-added tax and liability for nonperformance thereof shall be deemed to be borne by the Plaintiff. Even if ○○○ Company, which voluntarily received an input tax deduction using a false credit card sales slip, the input tax amount based on a credit card sales slip stating false facts, cannot be deducted from the output tax amount (Article 17(2)1-2 of the Value-Added Tax Act). Thus, the instant disposition cannot be deemed unlawful on the ground that the Plaintiff calculated the tax amount without deducting it, and imposed the said value-added tax on the Plaintiff.

(2) Furthermore, the Plaintiff asserted to the effect that, because he was unrelated to his false credit card sales slip, he cannot impose value-added tax on him on the ground that the above credit card sales slip was identified falsely. However, insofar as the Plaintiff is deemed a business operator who conducted sales subject to the disposition of value-added tax, since the input tax amount on the false credit card sales slip unfairly reduced the Plaintiff’s value-added tax amount, it is justifiable to impose an additional tax calculated by deducting the input tax amount from the input tax amount. Therefore, the instant disposition cannot be deemed unlawful

3. Conclusion

Therefore, the plaintiff's claim seeking revocation on the premise that the disposition of this case is unlawful is dismissed as it is without merit. It is so decided as per Disposition.

Related Acts and subordinate statutes

○ Taxpayers under Article 2 of the Value-Added Tax Act

(1) A person who independently supplies goods (referring to the goods prescribed in Article 1; hereinafter the same shall apply) or services (referring to the services prescribed in Article 1; hereinafter the same shall apply) on a business basis, regardless of whether it is for profit-making purposes (hereinafter referred to as "business operator") shall be liable to pay value-added taxes

(2) The persons liable for tax payment under paragraph (1) shall include individuals, corporations (including the State, local governments, and local government associations), unincorporated associations, foundations, and other organizations.

Article 6. Supply of Goods

(5) In selling and buying goods on consignment or through an agent, the consignor or the principal shall be deemed to have supplied or received goods directly: Provided, That the same shall not apply if the consignor or the principal is not identified.

○ Article 17 Tax Amount payable

(1) The amount of value-added taxes payable by an entrepreneur (hereinafter referred to as the “paid tax amount”) shall be the amount computed by deducting the tax amount under the following subparagraphs (hereinafter referred to as the “purchase tax amount”) from the tax amount on the goods and services supplied by him (hereinafter referred to as the “sales tax amount”): Provided, That where an input tax amount exceeds the output tax amount, it shall be a refundable tax amount (hereinafter

1. The tax amount for the supply of goods or services used or to be used for his own business;

2. The tax amount for the import of goods used or to be used for his own business; and

(2) The following input taxes shall not be deducted from the output tax amount:

1. An input tax amount in case where the list of the total tax invoice by customer is not submitted under Article 20 (1) and (2), or the input tax amount on the portion not entered or entered differently from the fact, in case where the whole or part of the registration numbers or supply values by transaction parties in the submitted list of the total tax invoice by customer is not entered or entered differently from the fact, except in such case as prescribed by

Article 19 (Final Return and Payment)

(1) A businessman shall report to the head of the competent district tax office having jurisdiction over the place of business within 25 days (50 days in cases of a foreign corporation) after the end of each taxable period the tax base, payable or refundable amount for

(2) An entrepreneur shall pay the tax amount payable for the taxable period, together with a declaration as referred to in paragraph (1) (hereinafter referred to as a “final declaration”), to the head of the competent district tax office having jurisdiction over the place of

○ Decision and Rectification of Article 21

(1) The head of a district tax office having jurisdiction over a place of business, the Commissioner of the competent Regional Tax Office or the Commissioner of the National Tax Service shall determine or correct the tax base of value-added tax or tax amount

1. Where the final tax return is not filed;

2. Where there are any mistakes or omissions in details of the final tax return;

○ Tax Credit following the use of Article 32-2 Credit Card, etc.

(3) Where a business operator is supplied with goods or services from a general taxable person prescribed by Presidential Decree, and receives a credit card sales slip, etc., by which value-added taxes can be separated, if all of the following requirements are met, such value-added taxes shall be deemed the input tax amount deductible under Articles 17 (1) and 26