The meaning of oligopolistic stockholder who bears the secondary tax liability.

In order to have a shareholder of a corporation bear the secondary tax liability under subparagraph 2 of Article 39 of the Framework Act on National Taxes, the shareholder is required to be in a position to substantially control the operation of the corporation as an oligopolistic shareholder.

Article 39 subparagraph 2 of the Framework Act on National Taxes

Supreme Court Decision 86Nu727 Decided January 20, 1987, Supreme Court Decision 86Nu105 Decided July 8, 1986, Supreme Court Decision 87Nu215 Decided June 9, 1987

Plaintiff

Head of Mapo Tax Office

Seoul High Court Decision 87Gu76 delivered on June 16, 1987

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

In order to have a shareholder of a corporation bear the secondary tax liability under Article 39 subparagraph 2 of the Framework Act on National Taxes, the shareholder is required to be in a position in which the shareholder can substantially control the operation of the corporation as an oligopolistic shareholder (see Supreme Court Decision 86Nu727 delivered on January 20, 1987).

According to the reasoning of the judgment below, the court below held that the non-party registered the plaintiff as a shareholder in the register of shareholders in the form of the company's establishment of Korea by evidence, and that the non-party did not hold a board of directors or a general meeting until the company closes its business, and that the plaintiff cannot be required to pay the plaintiff the secondary tax liability as an oligopolistic shareholder for the above purport. Thus, the court below's fact-finding and judgment are just and acceptable, and there is no violation of the legal principles of Article 39 subparagraph 2 of the Framework Act on National Taxes or against the rules of evidence, as argued otherwise.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the defendant. It is so decided as per Disposition by the assent of all participating Justices.

Justices Park Jong-hee (Presiding Justice)