Lee Han-san (Attorney above-apap, Counsel for defendant-appellee)

Head of Suwon Tax Office

December 16, 1981

The Defendant’s disposition of imposition of KRW 11,865,897 and KRW 2,847,814 of this defense tax in 1980 against the Plaintiff on March 17, 1980 shall be revoked.

Litigation costs shall be borne by the defendant.

The same shall apply to the order.

(1) In 1969, the Plaintiff purchased 915 square meters (3,025 square meters) from Nonparty 2 at 80,000,000, which was owned by Kim Jong-si in 1969, and transferred 500 square meters (hereinafter referred to as the “instant land”) among December 25, 197 to Nonparty 2, 300,000 won. The Defendant imposed capital gains tax on the transfer of the said land and its defense tax on the Plaintiff as of March 17, 1980, the transfer value shall be 20,000,000 won, which is the actual transaction value, and the acquisition value shall be 90,000,000 won, which is the value calculated according to the standard market price at the time of acquisition so that the said real transaction value may not be examined, and there is no dispute between the parties concerned, and there is no evidence of evidence No. 94, 25,000,000 witness evidence No. 9 of each of this case.

Therefore, it is possible to calculate the transfer margin from the transfer of the land in this case based on the actual transaction price. However, in the case of the taxation in this case, the defendant's acquisition price is determined based on the actual transaction price, and it is clear that the acquisition price was determined based on the standard market price.

(2) Therefore, under the provisions of Articles 23 and 45 of the Income Tax Act, the acquisition value and transfer value of the land of this case are calculated on the basis of the actual transaction value prior to the calculation of the gains from transfer, and the amount of the gains from transfer and transfer calculated on the basis thereof is calculated on the basis of the difference between the transfer value of the relevant assets and the amount obtained by deducting the necessary expenses under the provisions of Article 45 of the said Act from the amount (transfer gains) less the necessary expenses under the provisions of Article 45 of the said Act, the deduction amount of 90,00 won (transfer income deduction amount) and the acquisition value of the transferred assets from the amount obtained by multiplying the ratio as determined by the Presidential Decree and the period from the acquisition date to the transfer date (special deduction amount). The tax amount is calculated by applying the prescribed tax rate of 1-1,996,475 won (tax base) - the deduction amount of 0,000 won (special deduction amount of - 360,500 won) - 1050 won (special amount of transfer income)

(3) If so, the defendant's taxation of this case based on the premise that the transfer income of the plaintiff's land was based on the transfer of this case is illegal. Thus, the plaintiff's claim seeking its revocation is justified, and the lawsuit costs are assessed against the losing defendant. It is so decided as per Disposition.

December 30, 1981

Judges Yellowdon (Presiding Judge) and Lee Jae-chul