Tax burden when the title of representative director is used for business

If the site in the name of the representative director is appropriated for the company's factory site use asset without making a transfer registration under the name of the company, it shall not be deemed that the tax burden on the corporation's income has been unjustly reduced in the transaction with the related party.

Article 20 of the Corporate Tax Act

Cho Young-gu Industrial Co., Ltd., Counsel for the plaintiff-appellee-appellant

Head of North Busan District Tax Office

Daegu High Court Decision 74Gu53 delivered on December 16, 1976

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal by the defendant shall be examined.

According to the judgment of the court below, since the land at issue was owned by the non-party 1's representative director at the time of the incorporation of the plaintiff company, the non-party 2 invested in the plaintiff company's factory and used it as the site for the factory. Thus, even if the non-party 2 did not transfer the ownership of the above real estate and building to the plaintiff company for the business from January 1, 1972 to December 31, 197, it cannot be viewed that the non-party 2's tax burden on the plaintiff company's income was reduced unfairly as provided in Article 20 of the Corporate Tax Act, since the non-party 2 did not use the above non-party 6's sales revenue and the non-party 1's sales revenue and the non-party 2's sales revenue and the non-party 1's sales revenue and the non-party 4's sales revenue and the non-party 2's sales revenue and the non-party 1's sales revenue and the non-party 2's sales revenue and investment amount's profits were not calculated.

Therefore, the appeal is dismissed and all 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 Young-young (Presiding Justice)