Where other Acts than Article 11 of the former Corporate Tax Act (amended by Act No. 3473 of Dec. 31, 1981) are exempted from corporate tax, applicable provisions in the determination of the abated or exempted tax amount shall apply.

Even in cases where other Acts except Article 11 of the former Corporate Tax Act (Act No. 3473, Dec. 31, 1981) are to be exempted from corporate tax, the determination of the reduced or exempted tax amount shall be made in accordance with the provisions of Articles 11 and 69 of the Enforcement Decree of the Corporate Tax Act and Article 25 of the Enforcement Rule of the same Act.

Article 11 of the former Corporate Tax Act (amended by Act No. 3473 of December 31, 1981); Articles 11 and 69 of the former Enforcement Decree of the Corporate Tax Act (amended by Act No. 10666 of December 31, 1981); Article 25 of the former Enforcement Rule of the Corporate Tax Act

Gwangju Bank, Inc.

The director of Gwangju Tax Office

Gwangju High Court Decision 85Gu79 delivered on November 28, 1985

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

The grounds of appeal are examined.

1. Under Article 11 of the former Corporate Tax Act (amended by Act No. 3473 of Dec. 31, 1981), among income from each business year of a domestic corporation, Article 11 of the former Corporate Tax Act provides for the income exempted from corporate tax. Article 11 of the Enforcement Decree of the same Act (amended by Presidential Decree No. 10666 of Dec. 31, 1981) provides for the calculation method of corporate tax exemption or reduction and exemption under paragraphs (1) and (2) of the same Article. Paragraph (3) of the same Article provides for the exemption or reduction of corporate tax calculated by applying mutatis mutandis the provisions of paragraphs (1) and (2) of the same Article, except as otherwise provided in other Acts. Article 69 of the same Decree (amended by Presidential Decree No. 10666 of Dec. 31, 1981) provides for the methods of calculating corporate tax exemption or reduction and other common income, Article 25 of the Enforcement Rule of the Corporate Tax Act provides for the exemption or reduction of corporate tax under Article 115 of the same Act.

2. According to the reasoning of the judgment below, since the Plaintiff Bank acquired and owned currency stabilization bonds issued under the provisions of the Bank of Korea Monetary Stabilization Act, KRW 269,259,00 in interest income in 1979 and interest income in 1980,821,714 in accordance with the provisions of Article 4 (3) of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 3272 of Dec. 13, 1980), the court below determined that the Defendant calculated the common profit and loss of the interest income and other business income in 1979 and determined the income in 19,616,802, KRW 204,00 in interest income in 1980 and KRW 740,821,714 in interest income in 1980 as corporate tax exemption income in accordance with the provisions of the former Regulation of Tax Reduction and Exemption Act, and determined the difference between the tax reduction and exemption as corporate tax in 1979, 1984, 196484, 19608.

3. Therefore, the appeal shall be dismissed, and all costs of appeal shall be assessed against the losing party. It is so decided as per Disposition by the assent of all participating judges.

Justices Park Jong-dong (Presiding Justice)