The meaning of an input tax amount prior to the registration of a "in accordance with Article 17 (2) 5 of the former Value-Added Tax Act" (=in the case of a legitimate application for registration, the input tax amount prior to the filing of a lawful application for registration), and whether an unregistered penalty tax may be imposed under Article 22 (1) of the same Act in the case of a

According to Article 17 (2) 5 of the former Value-Added Tax Act (amended by Act No. 5585 of Dec. 28, 1998), the input tax amount prior to the registration under Article 5 (1) shall not be deducted from the output tax amount. In this context, the term "the input tax amount prior to the registration under Article 5 (1)" shall be deemed to be the input tax amount prior to the filing of the lawful application for registration, and in case of the lawful application for registration, the additional tax on the unregistered registration under Article 22 (1) of the same Act shall not be imposed.

Articles 5(1), 17(2)5, and 22(1) of the former Value-Added Tax Act (Amended by Act No. 5585, Dec. 28, 1998);

Supreme Court Decision 85Nu974 delivered on December 23, 1986 (Gong1987, 247), Supreme Court Decision 85Nu53 delivered on February 10, 1987 (Gong1987, 450), Supreme Court Decision 93Nu17355 delivered on December 10, 1993 (Gong194, 391), Supreme Court Decision 97Nu15814 delivered on October 22, 199 (Gong199Ha, 2437)

Plaintiff

head of Dongjak-gu Tax Office

Seoul High Court Decision 2001Nu1712 delivered on December 4, 2001

The appeal is dismissed. The costs of appeal are assessed against the defendant.

According to Article 17 (2) 5 of the former Value-Added Tax Act (amended by Act No. 5585 of Dec. 28, 1998; hereinafter the same), the input tax amount before filing for registration under Article 5 (1) shall not be deducted from the output tax amount. Here, the "in this case, the input tax amount before filing for registration under Article 5 (1) shall be deemed to be the input tax amount before filing for registration under Article 5 (1) (see Supreme Court Decision 97Nu15814, Oct. 22, 199; hereinafter the same shall apply). If such legitimate application for registration was filed, the additional tax on unregistered registration under Article 22 (1) of the former Value-Added Tax Act shall not be imposed.

According to the reasoning of the judgment below, the court below determined that since the Plaintiff’s application for registration of this case was lawful, even if the tax authorities issued the certificate of registration of tax-free business operator due to erroneous administrative affairs, the input tax amount of this case constitutes the input tax amount under the status of non-registration, and should not be deducted from the output tax amount for the same reason, and the non-registration penalty tax under Article 22(1) of the former Value-Added Tax Act cannot be imposed.

In light of the above legal principles and records, the above recognition and judgment of the court below is just, and there is no violation of the legal principles as to the principle of good faith as otherwise alleged in the ground of appeal.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition.

Justices Lee Yong-woo (Presiding Justice)