Whether a material tax liability exists in cases where the exercise of security interest terminates at the time of payment notice of delinquent taxes.

In the event that the security right is extinguished by acquiring ownership by executing the transfer security right through the settlement method for attribution at the time of receiving the notice of payment of national taxes, etc. delinquent under Articles 13(1) and 12 of the National Tax Collection Act as a person liable for physical payment based on the transfer security right, barring special circumstances, the person liable for physical payment as a person liable for security has no reason to pay

Article 42 of the Framework Act on National Taxes, Articles 13(1) and 12 of the National Tax Collection Act

National Agricultural Cooperative Federation (Attorney Kim Jong-soo, Counsel for defendant-appellee)

Head of Dong Daegu Tax Office

Daegu High Court Decision 82Gu285 delivered on December 1, 1983

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal by the defendant litigant are examined.

According to the provisions of Article 42 of the Framework Act on National Taxes, in a case where the right of transfer for security has been established on a taxpayer’s property, the mortgagee is liable to pay national taxes, etc. in arrears with the property transferred for security. Therefore, in a case where the right of transfer for security has already been extinguished at the time of receiving a notice of payment of national taxes, etc. in arrears as a person liable for physical tax under Articles 13(1) and 12 of the National Tax Collection Act, barring special circumstances,

According to the facts duly established by the court below, the plaintiff, as a mortgagee for the instant movable property owned by the non-party Cheongdo Co., Ltd., the non-party 1 was identified by the defendant as a material taxpayer for the value-added tax and additional dues in arrears and notified the payment of the above delinquent national tax. However, prior to receiving the above payment notice, prior to receiving the above payment notice, the above security offer value was duly assessed by exercising the security right, and acquired the ownership and offset the price obligation

Therefore, the decision of the court below that the plaintiff does not have a physical tax liability because it is apparent that the transfer security right has not existed after the extinguishment of the transfer security right at the time when the plaintiff received a notice of payment as a material taxpayer is just and there is no error of incomplete deliberation or mistake

Ultimately, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Lee Lee Sung-soo (Presiding Justice)