The meaning of "legal due date of the national tax" under the proviso of Article 42 (1) of the Framework Act on National Taxes, which prescribes the physical tax liability of the mortgagee.

The statutory due date of the national tax under the proviso of Article 42 (1) of the Framework Act on National Taxes, which provides for the physical tax liability of the mortgagee, shall be deemed to be the statutory due date of the taxpayer's national tax (not the due date of the physical tax liability to be borne by the mortgagee) in the interpretation of the language or provision. The statutory due date of the taxpayer's national tax shall be determined in accordance with the items of Article 35 (1) 3 (a), (b) and (c) of the same Act.

Article 42 (1) of the Framework Act on National Taxes

[Plaintiff-Appellant-Appellee] Plaintiff 1 and 1 other (Law Firm Han, Attorneys Park Dong-young et al., Counsel for plaintiff-appellant-appellee)

Jeonbuk Bank Co., Ltd., Counsel for the defendant-appellee

Korea

Gwangju High Court Decision 94Na3871 delivered on April 12, 1995

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

The grounds of appeal by the attorney are examined.

Article 42 (1) of the Framework Act on National Taxes provides that "where a taxpayer fails to pay national taxes, additional dues, or expenses for disposition on default, and the taxpayer has any property transferred for security, the taxpayer may collect national taxes, additional dues, and expenses for disposition on default from other property under the National Tax Collection Act only if the amount to be collected falls short of the amount to be collected even after the disposition on default is conducted on other property of the taxpayer: Provided, That this shall not apply to any property transferred for security, which is the object of security prior to the statutory due date of the national tax." This is a provision on a taxpayer's physical liability to pay taxes. It is clear that (1) the requirements are insufficient to collect even if the taxpayer fails to pay national taxes, and (2) the legal due date of the national tax is due before the taxpayer becomes the property transferred for security, and (3) the statutory due date of the national tax shall be deemed to be the statutory due date of the taxpayer's national tax under the language or interpretation of the above provision.

Examining the reasoning of the judgment below in light of the records, the court below acknowledged that the statutory deadline for KRW 504,420,426 among the national taxes on the defendant's non-party ○○ position was reached on or before April 16, 1992, among the national taxes on the defendant's non-party ○○ position, the movable property of this case was transferred by the plaintiff from the above ○○ control area prior to April 16, 1992. Since the defendant's claim for KRW 504,420,426 among the national taxes on the above ○○ control area was priority over the plaintiff's claims for transfer of security, the plaintiff shall bear the duty to pay physical taxes on the above national taxes. The above recognition and judgment of the court below are justified in accordance with the

Therefore, 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.

Justices Park Jong-ho (Presiding Justice)