A. Whether the provision of Article 102(4) of the Enforcement Decree of the Local Tax Act is invalid because it violates the purport or delegation of the parent law

(b) Application scope of paragraph (5) of the Addenda to the Local Tax Act (Act No. 2945, Dec. 31, 1976).

A. Article 102 (4) of the Enforcement Decree of the Local Tax Act provides for the application standards for heavy taxation under Article 138 (1) 2 of the same Act as delegated by the Local Tax Act, which is a mother corporation. In light of the legislative purpose of heavy taxation to restrain the concentration of population in large cities and prevent pollution, the above Enforcement Decree provision cannot be deemed as a provision for invalidation that goes against the purport of the parent law or goes beyond the limit delegated by the mother law.

(b) Even if a legal entity was established before January 1, 1972, the registration following the relocation of its head office into a large city after Article 138 of the Local Tax Act enters into force shall be subject to heavy taxation under Article 138(1)2 of the Local Tax Act pursuant to Article 138(5) of the Local Tax Act (Act No. 2945 of Dec. 31, 1976).

(a) Article 138 of the Local Tax Act; Article 102 (b) of the Enforcement Decree of the Local Tax Act; Article 138 of the Local Tax Act; Addenda to the Local Tax Act (Law No. 2945, Dec. 31, 1976);

New Industries Corporation

Head of Busan Central Government

Daegu High Court Decision 83Gu309 delivered on March 6, 1984

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

We examine the Plaintiff’s ground of appeal.

1. As to a ground for invalidation under Article 102(4) of the Enforcement Decree of the Local Tax Act:

Article 138 (1) 2 of the Local Tax Act provides that registration tax shall be imposed when a corporation other than a large city registers due to the transfer of its head or main office into a large city. Article 138 (3) of the same Act provides that registration tax under paragraph (1) of the same Article, the scope of and application standards for heavy taxation, and other necessary matters shall be prescribed by the Presidential Decree. Article 102 (4) of the Enforcement Decree of the same Act provides that "registration due to the transfer of head or main office into a large city by a corporation other than a large city" means registration due to the transfer of head or main office into a large city by a corporation other than the large city.

Article 102 (4) of the Enforcement Decree of the Local Tax Act provides for the application standards for heavy taxation under Article 138 (1) 2 of the same Act with the delegation by the Local Tax Act as the parent corporation. The purport of the "transfer to a large city" under Article 138 (1) 2 of the same Act is that the "transfer to a large city other than a large city is made into a large city" means a transfer to a large city, not from a place outside the large city to a large city, from a place outside the large city to the large city concerned, and as such, it cannot be deemed that the above provision of the Enforcement Decree goes against the purport of the parent law or goes beyond the limits delegated by the mother law, in light of the legislative purpose of heavy taxation to restrain the concentration of population in the large city and prevent pollution.

Under the same purport, the court below's decision that the plaintiff who has its head office in Seoul transferred into Busan is justified in holding that the corporation outside the relevant large city is subject to heavy taxation under Article 138 (1) 2 of the Local Tax Act because it constitutes the transfer into the relevant large city, and there is no argument that the above Enforcement Decree is null and void.

2. With respect to the scope of application in paragraph 5 of Addenda of the Local Tax Act (Law No. 2945, Dec. 31, 1976),

According to Article 138 of the Local Tax Act, the registration tax rate shall apply to corporations established in Seoul Special Metropolitan City and Busan Metropolitan City or established a branch or sub-branch after January 1, 1972, and corporations transferred their head office or principal office within Busan Metropolitan City and Busan Metropolitan City. Thus, even if the corporation is established before January 1, 1972, such as the Plaintiff, it shall be deemed as corporations subject to heavy taxation pursuant to Article 138 (1) 2 of the Local Tax Act if the registration was made after Article 138 of the Local Tax Act enters into force.

The court below's decision to the same purport is just and there is no argument to the effect that a corporation established before January 1, 1972 from the viewpoint of objection does not be subject to heavy taxation in any case.

3. As to the incomplete hearing and the assertion of mistake of facts:

This paper argues that the plaintiff's housing construction business operator constitutes a corporation exempt from the application of the proviso of Article 102 (2) of the Enforcement Decree of the Local Tax Act and does not enter the scope of a factory subject to heavy taxation as provided in Article 102 (1) of the Enforcement Decree of the Local Tax Act.

However, the provisions of Article 102 (1) and the proviso of Article 102 (2) of the Enforcement Decree of the Local Tax Act are related to the registration of real estate under Article 138 (1) 3 and 4 of the Local Tax Act. Thus, there is no room to apply to this case concerning the registration following the relocation of the head office of a corporation under Article 138 (1) 2 of the Local Tax Act.

4. 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.

Justices Lee Lee Sung-soo (Presiding Justice)