1. The Defendant’s disposition rejecting the correction of acquisition tax of KRW 14,017,230 as of December 29, 2016 against the Plaintiff, and the January 16, 2017.

Details of the disposition

On October 2, 2013, the Plaintiff: (a) acquired a vessel’s 1 (former Jinho Lake; hereinafter “instant vessel”) due to sale and purchase (tax base: 1,600,000,000) of the vessel; (b) applied the reduction provision on vessels acquired to register as an international vessel under the International Ship Registration Act under Article 64(1) of the former Restriction of Special Local Taxation Act (Amended by Act No. 12175, Jan. 1, 2014); and (c) filed a tax reduction of the tax rate of 20/1,00 from the tax rate of Article 12(1)1 of the Local Tax Act, and paid acquisition tax of 16,00,000 to Jeju Special Self-Governing Province as the port of registry.

On October 15, 2013, the Plaintiff entered into a bareboat charter (hereinafter “instant contract”) under the condition that the Plaintiff would pay the charterage 20,000 (USD) each month and transfer its ownership during the contract period between CENR RINE and TRORINC (hereinafter “V”) which is a corporation of the Philippines, with respect to the instant vessel during the two-year contract period. In addition, the Plaintiff entered into an agreement on the condition that “the Plaintiff shall notify the Plaintiff of the decision to acquire the vessel 60 days prior to the expiration of the charter contract period, and the purchase price shall be KRW 1,60,000 (USD).” In addition, the Plaintiff entered into a vessel agreement with the Republic of Korea, “if a corporation of the Philippines is unable to acquire the vessel, one year may be extended only once by mutual agreement.”

On October 25, 2013, according to the instant contract entered into with a corporation of the Philippines, the Plaintiff filed an export declaration completion certificate, stating export terms and conditions on transfer of ownership, to the port customs office, and filed an export declaration.

On the other hand, on February 4, 2014, the Plaintiff filed an application for cancellation of the nationality of the Republic of Korea to have the instant vessel acquired the nationality of the Republic of Korea, but, at the time of application for cancellation of nationality, it is not possible to cancel the nationality as a bareboat charter, submitted a sales contract as a document attached thereto.