Seoul Administrative Court-2015-Gu Partnership-5158 ( October 29, 2015)

The Non-Performing Loan Resolution Fund shall be deemed a corporation under the Corporate Tax Act.

The Non-Performing Loan Resolution Fund is an organization deemed a corporation under the Corporate Tax Act, and the time when shares received from the Fund accrue shall not be the time such shares are distributed, nor when profits from the Fund accrue.

Article 13 of the Corporate Tax Act

2016Nu69890 Revocation of revocation of revocation of corporate tax rectification

AA

The director of the tax office

August 24, 2015

December 21, 2016

1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

The judgment of the first instance shall be revoked. The corporate tax for the business year 2010 that the defendant against the plaintiff on May 1, 2014

The disposition of refusal of correction of KRW 1,318,227,240 and the disposition of refusal of correction of KRW 941,589,880 for the business year 201 shall be revoked.

1. Quotation of judgment of the first instance;

The reasoning for the court's explanation concerning this case is as follows, except for adding some of the reasons for the judgment of the court of first instance as follows, and adding the judgment under Paragraph (2) as stated in the reasons for the judgment of the court of first instance. Thus, it is acceptable to accept this as it is in accordance with Article 8 (2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act

○ The second ground of the 5th page "O00,000" is the "O0,000 won".

The "O,O,O, andO" of the 3rd and 8th and 14th and 15th and the "O" of the 17th and the "O" of the 8th and 15th are collectively "O,O,O, andO". The 8th and 15th are all "O,O,O, andO", the 10th and the "O,O," the "O,O," the 10th and the "O,O," the "O,O," the "O,O," the "O,O," the 17th and the "Plaintiff," the "Defendant," respectively, is the "O,O,O,O," the 10th and the "O" of the 17th and the "Defendant," the "Defendant," respectively.

○ The 5th page 15 of the 5th page "the instant construction" refers to the "property construction" as "property construction."

Pursuant to the 6th table, "the amendment of Article 2 (3) of the Addenda to the former Asset Management Corporation Act on Dec. 21, 2007" in Part 5 below "the amendment of Article 2 (3) of the Addenda to the former Asset Management Corporation Act on Dec. 21, 2007" (hereinafter referred to as "the Addenda to the former Asset Management Corporation Act")

In accordance with the proviso of Article 2 (5) of the Addenda to the Asset Management Corporation Act (hereinafter referred to as the "Supplementary to the Asset Management Corporation Act").

“Management Committee of Asset Corporation” (hereinafter referred to as “Management Committee”) following the 7th Schedule below the 6th Schedule.

(d) add "(d)".

○ Article 2(c) of the Corporate Tax Act(Article 2(c) of the Corporate Tax Act)(Article 1(2)(c) of the Corporate Tax Act), No. 7

The term "non-performing Resolution Fund Bonds" in the first place of the first place of the 20th and the 8th page shall be all "Non-Performing Resolution Fund Bonds".

Each altitude is the same.

Article 42 and Article 43 of the Asset Management Corporation Act shall be deleted in the 8th place "Article 40 (1)", and "Article 42 and Article 43 of the Asset Management Corporation Act" shall be "Article 41 (2), Article 42, and Article 43 of the Asset Management Corporation Act and Article 6 (1) of the Enforcement Decree of the same Act".

○ 8.10 The following shall be added:

In addition, the fund subject to the National Finance Act, such as the fund in this case, shall be managed and operated in accordance with the purpose of the establishment of the fund and the public interest (Article 62 of the National Finance Act), and the government shall submit the fund operation plan to the National Assembly by 120 days before the fiscal year begins (Article 66, 67, and 68 of the same Act).

Pursuant to Section 9 and Section 10 of the title 9, the term “not given” was read as “ not given”, and the term “instant case”

All of the Corporation shall be "Assets Corporation", and "The Non-Performing Loan Resolution Fund and the Fund created by the Fund" in 9-10 shall be "the principal and interest of Non-Performing Loan Resolution Fund Bonds".

○ The 10th page “Fund” of the 10th page is the “Fund”, and the 9-12th page is as follows:

Jinaly,

Article 29(1) of the former Corporate Tax Act (Amended by Act No. 9898, Dec. 31, 2009); the former

Article 56 (1) 3 of the Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 22577, Dec. 30, 2010) provides for "a non-profit domestic corporation equivalent to a non-profit domestic corporation which can appropriate the reserve fund for its proper business as deductible expenses and established by the Act and subordinate statutes."

○ 10 up to 13-16 acts are as follows.

[3] The former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 17826, Dec. 30, 2002; Presidential Decree No. 2008. Feb. 2, 2008

22. Article 2(1)8 (d) of the Presidential Decree (amended by Presidential Decree No. 20619) specifies the business related to the acquisition and liquidation of non-performing loans through the instant fund as an item excluded from the profit-making business of a non-profit corporation.

○ The Korea Assets Management Corporation of 18 to 19 of the 10th page "the Korea Assets Management Corporation of ...." shall be "the Corporation".

○ 15 pages 27 et al. are as follows.

Regulations No. 5371, and No. 5372, Aug. 22, 1997>

Article 2 (Operation Period, etc. of Fund)

(1) The financial resources of the Fund under Article 39, the non-performing loans under Article 41 (2) 1, and the acquisition of assets for self-help plan as prescribed by the Presidential Decree may be conducted only for five years after the enforcement date of this Act.

(2) The takeover under Article 26 (1) 1 shall be executed with the financial resources of the Fund during the period under paragraph (1).

(3) After the operation period of the Fund referred to in paragraph (1) has expired, the repayment of principal and interest of bonds and borrowings and disposal of acquired assets, etc., residual property of the Fund shall be returned to the relevant institution according to the disposal standards taking into account the contribution ratio, etc. referred to in Article 39 (1) 1 and

Addenda No. 5371, Aug. 22, 1997 (Amended by Act No. 8140, Dec. 30, 2006; Act No. 8698, Dec. 21, 2007)

Article 2 (Operation Period, etc. of Fund)

(1) The raising of financial resources of the Fund pursuant to the provisions of Article 39 (1) 2, 3, 3-2, and 4 through 6 may be made not later than November 22, 2007 only in cases where it is necessary to repay non-performing bonds issued by financial institutions in order to dispose of such non-performing bonds, and the raising of financial resources pursuant to the provisions of Article 39 (1) 7 may be made from November 23, 2002 to the end of the period of operation of the Fund pursuant to the provisions of paragraph (4).

② 제41조 제2항 제1호의 규정에 따른 부실채권 및 대통령령이 정하는 자구계획대상자산의 인수는 이 법 시행일부터 2002년 11월 22일까지 이를 할 수 있다. <신설 2006.12.30>

(3) The takeover under Article 26 (1) 1 shall be made out of the financial resources of the Fund for the period under paragraph (2).

(4) The Fund may be operated by November 22, 2012.

(5) The Fund shall complete the repayment of principal and interest of bonds and borrowings and the disposal of acquired assets, etc. by the date on which the operation period under paragraph (4) expires, and shall refund its residual assets to the contributor, etc. according to the operation standards in consideration of the contribution ratio, etc. under Article 39 (1) 1 (referring to the one prior to deletion under the amended Framework Act on the Management of Charges (Act No. 7058) through 3 and 3-2 within three months after the expiration of the operation period: Provided, That where it is obvious that the Minister of Finance and Economy has residual assets at the end of the operation period as a result of an actual inspection of the assets and liabilities of the Fund under Article 7 (1) of the Public Capital Redemption Fund Act, and it is possible to estimate such amount, part of the estimated residual assets may be refunded before the expiration of the operation period (referring to the presumed residual assets).

(6) Detailed criteria, time, procedures, methods, etc. for the disposal of the Fund pursuant to the provisions of paragraph (5) and other necessary matters shall be prescribed by the Presidential Decree.

2. The addition;

A. Nature of the shares of this case

In light of the provisions of the former Asset Management Corporation Act and the interpretation thereof, it is reasonable to view that the provision that the residual property of the Fund shall be returned to the relevant institution after the expiration of the period of operation of the Fund under Article 2 of the Addenda of the former Asset Management Corporation Act in accordance with the criteria for disposal taking into account the contribution ratio, etc. is rather than the return of profits to investors. Therefore, the seafarer’s assertion that the portion of the Fund in this case is a profit from the investment of a financial institution is without merit.

1) Article 39(1) of the former Asset Management Corporation Act provides for an “financial institution’s contribution as one of the financial resources to create the instant fund.” However, Article 9 of the same Act provides that the capital of the asset management corporation is comprised of financial institutions and the Government’s contribution, and the meaning of the contribution refers to an increase of property losses and losses caused by the occurrence of property by paying money or bearing obligations according to one’s own will.” In light of the fact that the said financial institution’s contribution means an increase of property losses, it shall not be construed as an interpretation that the said financial institution’s contribution means the payment of money and valuables without the financial institution

2) Article 39(1) of the former Asset Management Corporation Act provides for “1. Financial institutions’ contributions, money transferred from the Corporation, 2.3. Funds created by issuing Non-Performing Loan Resolution Fund Bonds, loans from the Bank of Korea; 4. Loans from the Bank of Korea; 5. Loans from persons other than subparagraph 4; 6. Operational earnings, and other revenues.” This is distinguishable from contributions, money transferred, money transferred from bonds issued, money borrowed from the Bank of Korea, loans, profits from the operation of the Fund, and other revenues. Therefore, it cannot be deemed that the members of the Fund, which is the premise for return of profits from the investment, are presented.

3) As long as financial institutions, including the Plaintiff, do not have invested in the instant fund, the fact that the former Asset Management Corporation Act had the relevant institution return residual property after the expiration of the period of operation of the Fund under Article 2 of the Addenda to the former Asset Management Corporation Act according to the guidelines for disposal taking into account the contribution ratio, etc. is a policy provision stipulating the method of disposal of residual property after the expiration of the period of operation. Thus, it cannot be deemed that the financial institutions, including the Plaintiff, etc., have the right to

4) Furthermore, the Fund is established for the efficient liquidation of non-performing loans, etc. owned by financial institutions, and is used for the liquidation business of non-performing loans, etc., so it does not directly aim at generating profits (Articles 38 and 41 of the former Asset Management Corporation Act).

B. The time when the amount distributed was reverted to gross income

(1) Article 40(1) of the Corporate Tax Act provides that “The business year to which the profits and losses of a domestic corporation accrue shall be the business year which includes the date on which the profits and losses are determined.” It shall be deemed that the income has been realized when the rights that constitute the cause of taxation have not been actually accrued, and the so-called principle of confirmation of rights is adopted for the calculation of taxable income. Such principle of confirmation of rights shall be deemed as the date when the rights that constitute the cause of taxation accrue, rather than the time when the income is realized, and shall be deemed as the time when the income of the Fund is calculated based on the premise that the actual uncertain income will be realized in the future. The concept of “determined” in the principle of determination of rights cannot be defined as a general principle that does not include any exception to the time when the assets are disposed of after the end of the business year (see, e.g., Supreme Court Decision 201Du19719, Sept. 16, 201).

3) Comprehensively taking account of the overall purport of the arguments in the statements in Eul evidence Nos. 2 through 6, the Government shall inspect the assets and liabilities of the Fund as of the end of June 2006 and the end of December 2007; on September 26, 2008, the 81.4 billion won was decided by the 8th Operation Committee of the 8th Operation Committee of the Non-Performing Loan Resolution Fund in 2008 to newly establish the items to be refunded to the financial institution in the expenditure plan out of the draft amendment to the Management Plan of the Non-Performing Loan Resolution Fund in 2008; thereafter, the National Assembly approved the payment of the refund amounting to KRW 90,81.4 billion; and accordingly

On December 29, 2008, the first return was made to financial institutions, including the Plaintiff on December 29, 2008, and the second business management committee of March 6, 2009 passed a resolution on amendment to the operational plan of the Non-Performing Loan Resolution Fund in 2009, and the second business management committee of March 6, 2009 can recognize the fact that financial institutions have reduced the refund from the first cost to oooo billion. Such distribution of residual property has no predictability as to the specific amount to be paid to the Plaintiff before the resolution of the business management committee.

4) Therefore, the time when the Plaintiff can be deemed to have secured the taxpayer’s money by enabling management and control of the shares of this case. Therefore, it is reasonable to deem that the business year to which the shares of this case accrue is 2010 and 2011. In this regard, the Plaintiff’s assertion is without merit.

3. Conclusion

Therefore, the judgment of the first instance court is legitimate, and the plaintiff's appeal is dismissed as it is without merit. It is so decided as per Disposition.