The plaintiff's claim is dismissed.

Litigation costs shall be borne by the plaintiff.

Details of the disposition

On April 21, 2006, the Plaintiff purchased the total area of 23,393 square meters (hereinafter “instant land”) prior to Suwon-si, Suwon-si, Suwon-si, Suwon-si, for KRW 870 million, and completed the registration of ownership transfer on June 14, 2006.

On October 20, 2016, the Plaintiff sold 60/100 and 40/100 of the co-ownership shares of each of the instant land to C Co., Ltd (D Co., Ltd.) and E Co., Ltd. in total at KRW 7.238 billion.

On December 31, 2016, the Plaintiff reported and paid KRW 1,589,572,500 of capital gains tax for self-employed land under Article 69 of the former Restriction of Special Taxation Act (amended by Act No. 14390, Dec. 20, 2016; hereinafter the same) by applying the special long-term holding deduction amount of KRW 1,910,640,00 under Article 95 (2) of the former Income Tax Act (amended by Act No. 14389, Dec. 20, 2016; hereinafter the same) with respect to the sale and purchase of the instant land, respectively.

From March 20, 2018 to April 8, 2018, the Defendant conducted a tax investigation with the Plaintiff, and determined that the Plaintiff did not directly cultivate the instant land at the location of the instant land during the period prescribed in Article 168-6 of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 27617, Nov. 29, 2016; hereinafter the same shall apply) and the period prescribed in Article 69 of the former Restriction of Special Taxation Act, and determined that the Plaintiff did not directly cultivate the said land at the location of the instant land, and excluded the application of capital gains tax reduction and exemption for special long-term holding deduction and self-employed farmland, and on May 21, 2018, the Defendant corrected and notified the Plaintiff of capital gains tax of KRW 2,245,783

The plaintiff above C.

On June 5, 3018, an objection was filed with the director of the Central Regional Tax Office against the disposition stated in the paragraph, and on June 26, 2018, the director of the Central District Tax Office partially accepted the plaintiff's claim on the ground that applying the penalty tax for unfair underreporting to the plaintiff is unreasonable.

Accordingly, the defendant corrected the above capital gains tax reduction of KRW 434,415,447 among KRW 2,245,783,056.

1,811,367.367.