1. Revocation of a judgment of the first instance;

2. On January 1, 2013, the Defendant imposed value-added tax on the Plaintiff.

1. The reasons why the court should explain this part of the disposition are the same as the reasons for the corresponding part of the judgment of the court of first instance. Thus, this part of the reasoning is cited in accordance with Article 8(2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act.

2. Whether the instant disposition is lawful

A. The Plaintiff’s assertion is merely a business operator under the name of “F”, and in fact, K newly constructs and transfers a house on the ground of the land B in Pakistan, but the instant disposition imposing value-added tax on the transfer of the instant land and housing on the Plaintiff, who is only a nominal business operator, is in violation of the substance over form principle.

(b) The details of the relevant statutes are as shown in the attached statutes.

C. Article 14(1) of the Framework Act on National Taxes declares the principle of substantial taxation by stating that “If the ownership of the income, profit, property, act, or transaction subject to taxation is merely nominal and there is a separate person to whom such income, profit, property, act, or transaction belongs, the person to whom such income, etc. belongs shall be liable to pay taxes

Therefore, in case where there is a person who substantially controls and manages the subject of taxation, such as income, profit, property, act, transaction, etc. different from the nominal owner, the nominal owner for the type and appearance, not the nominal owner, but the person who substantially controls and manages the subject of taxation in accordance with the principle of substantial taxation, should be the taxpayer.

In addition, such cases should be determined by comprehensively taking into account various circumstances, such as the details of the use of the name, the details of the agreement by the parties, the degree and scope of the nominal owner's involvement, the relationship of internal responsibility and calculation, the materials of independent management and disposition authority

Taxation Summary

As a matter of principle, the tax authorities are responsible for proving the existence and tax base of the facts, which is the difference between the name of the transaction and the actual owner of the transaction.