Transfer time which serves as the basis for calculating gains on transfer of assets

In calculating gains on transfer of assets, Article 27 of the former Income Tax Act (amended by Act No. 21, Dec. 21, 1982), which provides that the time of transfer of assets shall be the date of concluding the relevant contract and receiving part of the price other than the down payment, applies without examining whether there was a preliminary return on transfer margin or a final return on tax base.

Article 27 of the former Income Tax Act (amended by Act No. 3576 of Dec. 21, 1982)

Supreme Court Decision 80Nu303 Delivered on March 10, 1981, 83Nu60 Delivered on August 23, 1983

Plaintiff

Director of the tax office

Seoul High Court Decision 83Gu187 delivered on March 23, 1984

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal by the defendant litigant are examined.

1. According to the reasoning of the judgment below, the court below found the remainder of KRW 14,60,00 as 13,876,00 per contract date when the plaintiff purchased 14,60 won forest land at the time of transfer from the non-party Korea Highway Corporation on May 7, 1978, and agreed to pay the down payment of KRW 7,00,00 on August 7, 19 of the same year, and the remainder of KRW 5,476,00 as 5,00 on November 6 of the same year, and the intermediate payment of KRW 7,476,00 was paid on the above contract date, but the intermediate payment was paid on October 30, 1978; the remainder of KRW 15,576,00 on December 18, 1979; and the plaintiff received the remainder of KRW 15,570,000 on August 7, 1979.

2. According to the provisions of Article 27 of the former Income Tax Act (amended by December 21, 1982), in calculating gains from transfer of assets, the time of transfer of assets shall be the date of concluding the relevant contract and receiving part of the price other than the down payment. The above provision shall apply without examining whether or not there has been a preliminary return on gains from transfer under Article 95 of the Income Tax Act or a final return on tax base under Article 100 of the same Act. In this regard, the party's decision (see Supreme Court Decision 80Nu303, Mar. 10, 1981; Supreme Court Decision 83Nu60, Aug. 23, 1983; 83Nu60, Aug. 23, 1983). Thus, the court below did not err by misapprehending the legal principles as to gains from transfer or the final return on tax base, and thus, the time of transfer and the acquisition of part of the intermediate payment shall not be deemed to exist between the plaintiff and the party concerned.

The issue is groundless.

3. Therefore, the appeal is dismissed, and the costs of the appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating judges.

Justices Kim Young-ju (Presiding Justice)