The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1.(a)

The former Corporate Tax Act (amended by Act No. 9898, Dec. 31, 2009; hereinafter the same shall apply) provides that where a merged corporation succeeds to the evaluation of assets from a merged corporation, the portion in excess of the book value of the merged corporation among the value of the assets shall be imposed as a merger evaluation marginal profit [the proviso to Article 17(1)3 and the Enforcement Decree of the former Corporate Tax Act (amended by Presidential Decree No. 22184, Jun. 8, 2010; hereinafter the same

(2) Articles 15(2) and 12(1)1 of the Act provides that in the case of a merger, where the merged corporation succeeds to the evaluation of the assets of the merged corporation, the business rights appropriated by the merged corporation shall be deemed depreciation property limited to those of the value of business due to the trade name, transaction relations, and other trade secrets, etc. (hereinafter “trade name, etc.”) of the merged corporation, where the merged corporation succeeds

(Article 24(4)(b) of the former Enforcement Decree of the Corporate Tax Act.

According to the relevant laws and regulations, in order to impose the value of business rights as a merger evaluation marginal profit in the case of a merger of corporations, the merged corporation can be deemed as an intangible asset value that can obtain excess profits from the trade name, etc. of the merged corporation and evaluated the business value and paid the consideration.

In this case, whether the business value has been appraised shall be determined objectively by comprehensively taking into account various circumstances, such as the details and motive of the merger, the current status of the business of the merged corporation and the merged corporation at the time of the merger, and the details of tax return after the merger, etc., and it cannot be inferred merely

The reasons are as follows.

(1) In order to be taxed as a merger evaluation marginal profit of the merged corporation, it should be recognized as the assets of the merged corporation.

Even if a corporation created an intangible asset value through its own business activities, it is recognized as an asset under tax law.