1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

Details of the disposition

On November 30, 2015, the Plaintiff entered into a sales contract with Bridge, Seoul Special Metropolitan City, Nowon-gu, to sell KRW 4,092,00,00 of the purchase price of KRW 341 square meters (hereinafter “instant land”) prior to C, Seoul Special Metropolitan City, Nowon-gu, and the Plaintiff completed the registration of ownership transfer on February 24, 2016.

On April 2016, the Plaintiff applied the special long-term holding deduction to the Defendant on the premise that the instant land is not non-business land, and reported the capital gains tax to be paid at KRW 632,947,990 to the Defendant by applying the tax rate of 38%.

On January 13, 2017, the Defendant notified the Plaintiff of a corrective disposition to increase capital gains tax of KRW 617,269,30 (including additional tax) by applying Article 104 (1) 8 of the former Income Tax Act (amended by Act No. 14389, Dec. 20, 2016; hereinafter “former Income Tax Act”) on the ground that “The instant land falls under the land for non-business and thus, denies the special deduction for long-term possession, and applying additional tax” (hereinafter “instant disposition”).

[Grounds for recognition] The Plaintiff’s assertion as to the legitimacy of the instant disposition and the purport of the entire pleading as to the facts without dispute, Gap’s evidence Nos. 1, 2, 15, 16, and Eul’s evidence Nos. 1, and Eul’s assertion as to the legitimacy of the instant disposition, is used as a parking lot for the customers of the “Fsports Center” (hereinafter “instant sports center”) operating on the 7th floor, Nowon-gu, Seoul Special Metropolitan City’s ground-based building (including underground 4 floors; hereinafter “instant building”). As such, the instant land constitutes land used for the utility and convenience of the instant sports center, and constitutes land attached to the instant sports center.

Therefore, the instant land is prior to the amendment by Presidential Decree No. 27710, Dec. 30, 2016, Article 106(1)2(a) of the former Local Tax Act (amended by Act No. 14475, Dec. 27, 2016; hereinafter “former Local Tax Act”); and