1. The plaintiff's claim is dismissed.

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

Basic Facts

Details of the disposition

On October 1, 2007, the Plaintiff acquired a rice field B 2,849 square meters, C preceding 46 square meters, and D preceding 215 square meters (hereinafter “each of the instant farmland”), but concluded a sales contract on November 25, 2015, and transferred the instant farmland on April 1, 2016.

On June 30, 2016, the Plaintiff reported and paid KRW 256,332,440, capital gains tax for the year 2016 by applying the special long-term holding deduction, deeming that each of the instant farmland constituted land for business purposes.

After conducting an investigation of capital gains tax on each farmland of this case, the Defendant deemed that each farmland of this case constitutes land for non-business use, and excluded the special deduction for long-term possession. On December 1, 2016, the Defendant issued a notice of correction that increased the capital gains tax of 209,671,580 won (including additional tax) for the Plaintiff in 2016.

(hereinafter “instant disposition”). Article 66(14) of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 27848, Feb. 7, 2017; hereinafter “former Enforcement Decree of the Restriction of Special Taxation Act”) shall apply mutatis mutandis to the determination of the period of own farmland on February 17, 2016, including the details of the amendment of relevant Acts and subordinate statutes. According to Article 66(14) of the former Enforcement Decree of the Restriction of Special Taxation Act, Article 168-8(2) of the former Enforcement Decree of the Restriction of Special Taxation Act (hereinafter “former Enforcement Decree of the Restriction of Special Taxation Act”), “The latter part of Article 168-8(2) of the same Act (hereinafter “Enforcement Decree of the Restriction of Special Taxation Act”) shall apply mutatis mutandis to the determination of the period of own farmland, and

Article 95 (2) and (4) of the former Income Tax Act (amended by Act No. 13558, Dec. 15, 2015) did not recognize the special deduction for long-term possession of land for non-business in order to restrain the transfer of land by an individual after holding it as a means of property increase, instead of using it for a productive purpose according to the actual demand.