Appropriateness of receipt of false tax invoices

In addition, while partially recognizing the processing transaction of the tax invoice, it was required to make an additional estimation, but the tax invoice in this case cannot be deemed as a lack of important parts for the plaintiff's business, so the request for an estimation

Article 80 (Determination and Correction of Income Tax Act)

1. The plaintiff's claim is dismissed.

2. The plaintiff shall bear the litigation costs.

The disposition of imposition of global income tax of KRW 150,33,980 against the Plaintiff on June 18, 2005 shall be revoked.

1. Details of the disposition;

A. The Plaintiff, who had engaged in the ○○○○○ manufacturing business in its trade name, filed a comprehensive income tax return for the year 2002 by inserting KRW 300,108,880 (hereinafter “instant purchase tax amount”) equivalent to the value of supply in Chapter 3 of the purchase tax invoice received from the ○○○ Stock Company by including the purchase tax invoice in the necessary expenses.

B. On June 18, 2005, the Defendant revised the income tax amount by excluding the purchase tax amount in necessary expenses on the ground that it was a processed transaction. Here, after deducting the already paid tax amount, the Defendant imposed the global income tax of 150,33,980 won on the Plaintiff for the year 2002 (hereinafter “instant disposition”).

[Ground for Recognition: Facts without dispute, evidence Nos. 2 and 6-2 of evidence Nos. 6, purport of the whole pleadings]

2. Determination of legality of the instant disposition

A. The plaintiff's assertion

(1) In fact, the Plaintiff purchased electronic parts, such as IIC equivalent to the purchase tax amount of the instant issue from ○○○ Co., Ltd.

(2) Even if not, if the key purchase tax amount of the instant case is denied from necessary expenses, the Plaintiff’s purchase cost ratio is merely 17.1% and the gross sales profit ratio reaches 82.9%. This is not realistic compared to the simple expense rate of the same industry, and thus, the amount of income should be determined by the method of estimated investigation, as it falls under a case where the account book and documentary evidence verifying the actual purchase are incomplete, since it is not realistic.

(b) Related statutes;

It is as shown in the attached Form.

C. Determination

(1) Determination on the first argument

Comprehensively taking account of the overall purport of the arguments in the statements in Eul 3 through 5, the plaintiff can be acknowledged that the plaintiff received purchase tax invoices equivalent to KRW 300,108,88,880 in total, including the supply price of 98,217,773 won on January 31, 2002, supply price of 106,318,550 won on February 28, 2002, supply price of 106,318,550 won on February 28, 2002, supply price of 95,572,62, and supply price of 300,000 won on March 30,

(2) Judgment on the second argument

In principle, the tax base and tax amount of global income tax shall be determined by the actual amount revealed by the method of the on-site investigation. In order to determine it by the method of the on-site investigation, it shall be exceptionally permitted only when there is no taxpayer’s account book or documentary evidence, or the important part is insufficient or false and the tax authorities otherwise have no other way to disclose the actual amount of income. Thus, even if some of the account books or documentary evidence entered are included in the book or documentary evidence, if it is obvious that the remainder except the part is the data corresponding to all facts and can be calculated based on this, the tax base and tax amount shall not be determined by the method of the on-site investigation, and the reasons that the taxpayer wants to investigate and determine it by the method of the on-site investigation cannot be deemed as satisfying the requirements for the on-site assessment (see, e.g., Supreme Court Decision 96Nu8192, Sept. 26, 199).

In full view of the purport of the entire pleadings as seen earlier, the Plaintiff may recognize the fact that the Plaintiff reported the global income tax base in 2002 based on account books and documentary evidence, and, inasmuch as there is no evidence to acknowledge that the entries of the remainder other than the processed purchase tax amount in the account books and documentary evidence are clearly false, all of the remaining parts should be deemed to correspond to the facts. As such, in calculating the tax base, the Plaintiff cannot be deemed to have satisfied the requirements for the determination of estimated tax assessment because there is no significant or false part of the necessary account books and documentary evidence in the calculation of the tax base. Furthermore, since the Plaintiff does not have any proof as to the amount equivalent to the processed purchase account statement of this case as to raw materials and used necessary expenses, it is reasonable to presume the absence of necessary expenses (see, e.g., Supreme Court Decision 86Nu121, May 24, 198).

Therefore, the plaintiff's assertion on this part is without merit.

3. Conclusion

Therefore, the plaintiff's claim is dismissed as it is without merit. It is so decided as per Disposition.

Related Acts and subordinate statutes

/ Income Tax

Article 80 (Settlement and Correction)

(2) If a person who has made a final return on tax base pursuant to Articles 70 through 72 or 74, falls under any of the following subparagraphs, the head of a regional tax office having jurisdiction over the place of tax payment or the head of a regional

1. Where an omission or error exists in the contents of return;

(3) Where the head of a regional tax office or the head of a regional tax office having jurisdiction over the place of tax payment determines or revises the tax base and amount of tax for the concerned year under paragraphs (1) and (2), he shall make it based on the books and other documentary evidence: Provided, That where it is impossible to calculate the amount of income by books or other documentary evidence for

【Enforcement Decree of the Income Tax

Article 142 (Determination and Revision of Assessment Standard and Tax Amount)

(1) The determination or correction of tax base and amount of tax under Article 80 of the Act shall be based on the final return on tax base and the attached documents or on-site investigations.

Article 143 (Determination and Revision through Estimation)

(1) "Grounds prescribed by Presidential Decree" in the proviso to Article 80 (3) of the Act means cases falling under any of the following subparagraphs:

1. Where necessary account books and documentary evidence are missing or important parts are incomplete or false in the calculation of the tax base;