propriety of the disposition taking the first in first in first in order, deeming that the time of acquisition of shares is unclear.

If shares are transferred after additional acquisition of non-listed shares that have not been issued, the time of acquisition is unclear because it is not possible to specify the transfer shares because the shares are mixed with the original shares. Therefore, imposing capital gains tax according to the conceptually specified method by the taxpayer is responsible for calculating taxable income to the taxpayer, and it is not fair and reasonable. Therefore, the acquisition value should be calculated by the "first in first in first in first in first in accordance with Article 165(5) of the Enforcement Decree of the Income Tax Act."

Article 165 (5) of the Enforcement Decree of the Income Tax Act

The plaintiff's claim is dismissed.

Litigation costs shall be borne by the plaintiff.

The Defendant’s disposition of imposition of capital gains tax of KRW 176,359,760 for the Plaintiff on January 10, 2005 is revoked.

1. Details of disposition;

A. The plaintiff is the representative director and the shareholder of ○○○○○○ Co., Ltd. (hereinafter referred to as “Nonindicted Company”). The non-party company's shares issued by the non-party company (hereinafter referred to as “non-party company's shares”) hold 24,200 won per share, and 162,40 shares (=24,200 shares + 138,200 shares + 138,200 shares) by capital increase without compensation. On March 9, 2002 and March 11, 2002, the plaintiff acquired 10,000 won per share from ○○○○ Co.,, Ltd. (hereinafter referred to as “non-party company's shares”) and the non-party company's shares (hereinafter referred to as “non-party company's shares”) and held 35,405,400 shares (hereinafter referred to as “non-party company's shares”).

B. During the period from March 11, 2002 to March 22, 2002, the Plaintiff transferred 197,000 shares out of 359,40 shares it owned to 5 employees of the non-party company, including ○ Venture Business Investment Association (hereinafter “○○ Venture Business Investment Association”) from 10,000 won per share to 16,560 won, and 30,000 shares out of shares transferred to the ○ Venture Business Association at the same price per share on March 21, 2002, and thereafter purchased 30,000 shares at the same price per share on March 21, 2002.

C. On May 31, 2002 and May 31, 2003, the Plaintiff calculated gains by deducting the acquisition value of the stocks acquired from ○○○ and ○○○○○○○, etc. from the transfer value of the stocks transferred to ○○○, etc. on the grounds that the non-party company’s shares were sold specifically by specifying the stocks acquired from ○○○ and ○○○○○, etc., and then filed a return of KRW 60,165,000 as transfer income tax for such gains, and paid it as transfer income tax for 202.

D. However, on July 2002, the Commissioner of the National Tax Service, while conducting a comprehensive audit on the ○○ Tax Office’s ○○, pointed out that the Plaintiff’s report on the transfer income tax was made, and that the Nonparty Company’s stocks were not issued as non-listed stocks, so if the acquiring time of the transferred assets is unclear, the first acquired assets shall be deemed to have been first transferred, pursuant to Article 162(5) of the Enforcement Decree of the Income Tax Act, that the acquisition value of 218,100 shares of the above transferred stocks (excluding the acquisition value per share and the transfer value per share 10,000 won per share) shall be imposed at KRW 678,00,000, and on January 10, 2005, the Defendant issued a disposition imposing capital gains tax of KRW 176,359,760 for the Plaintiff (hereinafter “instant disposition”).

Facts that there is no dispute over the basis of recognition. Gap evidence 2-2, Eul evidence 1 and the purport of the whole pleadings

2. Whether the disposition is lawful;

A. The parties' assertion

As to the Defendant’s assertion that the instant disposition is lawful, the Plaintiff asserts that the instant disposition should be revoked on the following grounds.

(1) The Plaintiff held 162,400 shares of the non-party company prior to receiving 197,00 shares of the non-party company from ○○○ and ○○○○○○. However, the shares of the 162,00 shares are not transferred, transferred, sold, or disposed of all or part of the shares of the non-party company to a trade name or a third party without prior written consent of the investment company when receiving an investment from a venture investment company, such as ○ Technology Investment Company, etc. that invested in the non-party company. If the company violated this, the transfer is limited pursuant to a special agreement that the company should compensate for damages.

(2) For the foregoing reasons, the Plaintiff purchased the shares of the non-party company from ○○○ and ○○○○○, and then specified the shares acquired from ○○○ and ○○○○○○, which were initially owned by the Plaintiff, to transfer to 5 employees of the non-party company, such as ○○○ and ○○ Venture Association. In fact, 197,00 shares of ○○ and 197,00 shares acquired from ○○○ and ○○○○○○ (hereinafter referred to as “○○ Venture Partnership”) were transferred to 5 employees of the non-party company, and thereafter, 30,000 shares out of the shares transferred to ○○ Venture Association pursuant to the re-purchase agreement, were transferred to 20 employees of the non-party company.

(3) Thus, even if the Plaintiff did not issue the shares of the non-party company at the time of transferring the non-party company’s shares to the ○○ Venture Association, the acquiring time of the shares transferred by the Plaintiff to the ○○ Venture Association, etc. cannot be deemed unclear. Thus, the Defendant’s disposition of this case against which the Plaintiff imposed capital gains tax by the ○○ Venture Association on the ground that the acquiring time of the non-party company’s shares transferred

B. Relevant statutes

Attached Form 1. The entry is as shown in Annex 1.

(c) Fact of recognition;

The following facts can be acknowledged by comprehensively taking into account the following facts: Gap's 3 to 33 evidence, 36 to 47 evidence (including paper numbers) and Eul's witness's testimony, and the overall purport of the separate theory. The statement of Eul's 2 evidence alone lacks to reverse the above facts, and there is no other counter-proof.

(1) On February 25, 200, the Plaintiff, as a semiconductor technology expert, established a non-party company whose main business purpose is the manufacture of ○○ Swafer (○○○) which is a new material of semiconductor industry, and around that time, when the non-party company receives investment from a venture investment company such as ○ Technology Investment Company, the Plaintiff, an interested party, was unable to transfer, transfer, sell or dispose of all or part of the shares of the non-party company to a trade name or a third party without the prior written consent of the investment company, and when the company fails to perform this, the company has a claim for appraisal rights, investment principal and 13% per annum with compensation for damages. As of January 1, 2002, the status of holding the shares of the non-party company (unlisted shares issued as non-listed shares) is as follows.

Name of shareholders

Face Value

Number of Stocks

Equity ratio (%)

5,000

162,400

26.54

○ ○○

5,000

141,400

23.11

○○

5,000

60,600

9.9

○ Venture Business

5,000

24,000

3.92

○ ○ Technology Investment

5,000

20,000

3.27

○ ○ Start-up Investment

5,000

13,300

2.17

○ ○ Video

IT Venture0 Investment Association

5,000

13,300

2.17

Minority Stockholders (00 persons)

5,000

176,950

28.92

Total

100

(2) On February 9, 2002, around 197,00 shares owned by ○○○ and its affiliates (the total of 141,40 shares owned by ○○○○○○ and 60,600 shares owned by ○○○○○○○) were to be transferred to the Plaintiff. Under the judgment that the above 197,00 shares were transferred to a third party, the Plaintiff decided to transfer the shares with the above 197,00 shares to the non-party company upon the purchase of the above 197,00 shares from the non-party company, and then the friendly investors appear to have been transferred to the non-party company. ① on March 9, 2002, the 197,00 shares were acquired from ○○○○○○○ and 600 shares per share, 60,600 shares were acquired from 10,000 shares + 3060 shares per share, 1600 shares were acquired from ○○○, 360160 shares per share

(3) From March 9, 2002 to March 22, 2002, the Plaintiff entered into a sales contract for each of the following items with five (5) holders, including ○○ Venture Association. The Plaintiff entered into a sales contract for shares to be sold by the parties to this contract, stating that the shares to be sold are shares purchased from ○○○○○ or Lee○○○○’s shares out of the shares of the non-party company 5,000 won per share (60,600 shares out of shares transferred to ○○○○○) (the remaining shares shall be the shares purchased from ○○○○○○, and all of the remaining shares shall be the registered common shares purchased from ○○○○○, and Article 2). The seller (Plaintiff) lawfully owned the transferred shares as of the date of the contract, and did not offer them to a third party as security or any other similar form, and the seller did not lawfully exercise his right to ownership shares (Article 7).

No.

Transferors

Date of contract

Number of Stocks

Price per Share

Transfer Value

1

○○ Venture Association

9, 2002

50,000

10,000

50 million won

2

○ Kim

d. 1, 202

100,000

(39,400 shares from ○○, 60,600 shares from ○○○)

16,650

1.65 billion won

3

○ Venture Investment Company

. 203.20

30,000

10,200

36 million won;

4

Park ○

. 203.20

15,000

10,000

150 million won;

5

o○

22, 2002

2,000

10,000

20 million won;

Total

197,700

260,000 won 41 million won

(4) On March 9, 2002, when entering into an agreement with the ○ Venture Association as described in paragraph (1) of the above table, the Plaintiff agreed to the effect that, on December 30, 2002, if the “201 (the net profit-development cost per party) is less than 500 million won, the transferor shall repurchase 30,000 shares again until December 30, 2002. As a result of the settlement of accounts in 2001, the amount calculated by subtracting the development cost for intangible fixed assets from the net income of the non-party company was less than 50 million won, the Plaintiff purchased 30,000 shares of the non-party company from the ○○ Venture Partnership at KRW 10,00 per share on March 21, 202, purchased 300 shares of the non-party company from the non-party company’s employees, etc. at KRW 20,000 per share on March 22, 2002.

D. Determination

The Plaintiff’s transfer of shares to ○○○○ Venture Business Association and other ○○○○○ Venture Business Association is a specific fact that the Plaintiff acquired shares from ○○○○○○○○○○○ Association and ○○○○○○○○○○○○○○ (hereinafter “○○○○○”). However, since shares of Nonparty Company were not issued as non-listed shares, the Plaintiff’s declaration of intention pursuant to the general principle of transfer of non-listed shares was inevitable to transfer non-listed shares. However, as long as shares of ○○○ and ○○○○○○ Venture Business were not issued, it appears that the Plaintiff’s transfer of shares to ○○○○○○ Association and other ○○○○○○○○○ Venture Business without any specific purpose of acquiring shares from ○○○○○○ Partnership and other ○○○○ Venture Business without any specific purpose of acquiring shares, it appears that the Plaintiff’s transfer of shares from ○○○ Partnership and other ○○○○○ Partnership cannot be seen as having been subject to any specific transfer of shares.

3. Conclusion

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

1.

Related Acts and subordinate statutes

○ former Income Tax Act (amended by Act No. 6781 of Dec. 18, 2002)

Article 94 Scope of Transfer Income

(1) Transfer income shall be the following incomes generated in the relevant year:

3. Income accruing from transfer of stocks or investment shares falling under any of the following items (including preemptive rights; hereafter referred to as "stocks, etc." in this Chapter):

(c) Stocks of corporations other than stock-listed corporations or Association-registered corporations.

Article 97 (Calculation of Necessary Expenses for Capital Gains)

(1) In calculating gains on transfer of a resident, necessary expenses to be deducted from the transfer value shall be as follows:

1. Acquisition value:

(a) In case of assets prescribed in Article 94 (1) 1 and 2, the standard market price at the time the assets are acquired: Provided, That in case where the assets concerned fall under any of Article 96 (1), it shall be based on the actual transaction price required for the acquisition of such assets;

Actual transaction price required for the acquisition of the following assets: Provided, That in cases falling under the main sentence of Article 96 (2), the standard market price at the time of acquisition of the relevant assets;

(b) In case of assets listed in Article 94 (1) 3 and 4, the actual transaction price required for the acquisition of the relevant assets;

(c) In the case of the proviso of item (a) or (b), where it is impossible to confirm the actual transaction price at the time of acquisition, the value as determined by the Presidential Decree considering the value, etc. under

Article 98. Time of Transfer or Acquisition

In calculating gains on transfer of assets, the time of acquisition and transfer shall be determined by Presidential Decree.

Article 89 Acquisition Value of Assets, etc.

(1) The acquisition value of assets under Article 39 (2) of the Act shall be as follows:

1. For assets purchased from a third person, the amount calculated by adding the acquisition tax, the registration tax and other incidental expenses to the purchase price;

○ former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 17555 of March 30, 2002)

§ 162. Time of transfer or acquisition

(1) The time of acquisition and transfer under Article 98 of the Act shall be the date of liquidation of the price of relevant assets (if the transferee agrees to bear the capital gains tax and additional tax of capital gains tax on the transfer of relevant assets, excluding such capital gains tax and additional tax of capital gains tax) except in the following cases:

1. Where the date of the settlement of price is not clear, the date of registration, receipt of registration, or transfer date entered in the register, registry, list, etc.;

2. Date of receipt of the registration entered in the register, register, list, etc. where the transfer of ownership (including the registration and the opening of the name) has been made before the price is settled;

3. The date of receipt, delivery, or use and profit-making date, in cases of a long-term installment plan as prescribed by the Ordinance of the Ministry of Finance and Economy.

4. Date of issuance of the certificate of usage inspection for a building constructed by himself: Provided, That where it has been actually used or approved for use before the usage inspection, the date of actual use or that of approval for use, and where it is constructed without obtaining any construction permission, the date of actual use

5. For assets acquired by inheritance or donation, the date on which such inheritance commences or donation is received;

6. Where acquiring the ownership of real estate under Article 245 (1) of the Civil Act, the date on which an occupation of the relevant real estate commences;

(5) In applying paragraphs (1) through (4), if the acquiring time of transferred asset is obscure, the asset first acquired shall be considered to be first transferred.

2.

Details of the Plaintiff’s acquisition and transfer of shares

Details of acquisition;

Details of transfer;

Transferors

Date of acquisition

Number of Stocks

Unit Price

acquisition

Value;

transferee and transferee

Transfer Date

Number of Stocks

Unit Price

Transfer

Value;

Basic

Stocks

200

Year

24,200

5,000

121,000,

00

○

Venture Business

Partnership

202. 200

3.9.

50,000

10,000

500,000

00

200 end of the year 200

Free capital increase;

138,200

0

0

○ Kim

202. 200

3.11.

100,000

16,650

1,665;

00,000

○

○

202. 200

3.9.

60,600

(5,700)

10,000

606,000,000

(57,000,000)

○

Venture Business

Investment

Stock Company

202. 200

3.20.

30,000

10,200

306,000,000

Senior ○

○

202. 200

3.11.

136,400

10,000

1,364;

00,000

Park ○

202. 200

3.20.

15,000

10,000

150,000,000

○

Venture Business Association

202. 200

3.21.

30,000

10,000

300,000,000

o○

202. 200

3.22.

2,000

10,000

20,000,000

20 persons including ○○, etc.

202. 200

3.22.

28,000

(23,100)

10,000

280,000,000

Total

25,000

(218,100)

2,391,

00,000

(678,000,000)

2,920;

00,000

(2,852,00,000)