Cheongju District Court-2015-Gu Partnership-10310 (2015.07.02)

Unless the notice of change in the amount of income is void automatically, it shall not be asserted in an appeal litigation against the collection disposition.

Where there is a notice of change in the amount of income, it shall be disputed in an appeal litigation on the notice of change in the amount of income which is finalized with respect to the liability to pay the income tax withheld, and it shall not be contested in an appeal litigation on the disposition of collection unless the notice of change in the amount of

Daejeon High Court (Cheongju) 2015Nu10927 and revocation of detailed earned income and revocation thereof.

Co., Ltd. 00

00. Head of tax office

Cheongju District Court Decision 2015Guhap10310 decided October 2, 2015

oly 2016.15

2016.09.07

1. The plaintiff's appeal is dismissed.

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

The judgment of the first instance is revoked. The imposition disposition of KRW 000 on the Plaintiff on July 2, 2014, which the Defendant rendered on July 2, 2014, shall be revoked.

1. Details of the disposition;

The reasoning for the court's explanation on this part is that "the defendant issued a correction and notification of corporate tax of 00 won on May 2, 2014 to the plaintiff on May 2, 2014, and notified the representative director KimYB of change in the amount of income that is disposed of as bonus," "the defendant issued a notice of change in the amount of income that is disposed of as bonus for the representative director KimYB on May 1, 2014, and on May 2, 2014, the notice of change in the amount of income that is disposed of as bonus for the representative director KimYB on May 2, 2014, but the notice of correction and notification of corporate tax of 00 won on May 2, 2014 is the same as the reasoning for the judgment of the court of first instance." This is cited as it is as it is in accordance with Article 8

2. Whether the lawsuit of this case is lawful

A. Defendant’s defense prior to the merits

In the first instance, the Defendant asserts that the Plaintiff’s obligation to withhold tax on the earned income is due to the notice of change in the amount of income, and the instant disposition is merely a demand for the performance of such tax obligation, so it cannot be deemed an administrative disposition subject to appeal litigation because it does not affect the Plaintiff’s rights and duties as a taxpayer. Therefore, the Plaintiff should have contested the notice of change in the amount of income, not the instant disposition, but the instant lawsuit is unlawful.

B. Determination

However, the instant disposition is a separate disposition from the notice of change in the amount of income, and if there is a defect in the invalidity in the notice of change in the amount of income as examined below, the instant disposition, based on which it is based, may be revoked illegally, and thus, the Defendant’s prior objection to the merits that the instant disposition is not the subject of appeal litigation, is without merit.

3. Judgment on the merits

A. Plaintiff’s assertion and relevant statutes

1) The reasoning for this Court’s explanation is as stated in the reasoning of the judgment of the first instance except for the addition of the Plaintiff’s assertion in the trial as described in the following 2). Thus, this part is cited in accordance with Article 8(2) of the Administrative Litigation Act and the main text of Article 420 of the Civil Procedure Act.

2) The plaintiff asserts that, in addition to the argument in the first instance trial, the notice of change in the amount of income of this case, which is a prior disposition, is null and void on the grounds as alleged in the first instance trial, and thus, the disposition of this case, which is succeeded as it is, is unlawful.

B. Determination

1) Basic Law:

In a case where a tax authority’s disposition of income and a notice of change in the amount of income thereby issued, a corporation that is the withholding agent shall be deemed to have paid the relevant amount to the person to whom the income recorded in the notice was given on the date of receipt of the notice of change in the amount of income and at the same time becomes final and conclusive. Thus, the notice of change in the amount of income is subject to appeal litigation as an act of the tax authority directly affecting the tax liability of the corporation that is the withholding agent. As such, the tax payment notice issued by the tax authority constitutes a collection disposition ordering the payment of the amount of income withheld by the corporation that is the withholding agent. Therefore, even if there is a defect in the notice of change in the amount of income which is the preceding disposition, it shall not be succeeded as it is to the collection disposition that is subsequent disposition, unless there is a defect in the notice of change in the amount of income which is a disposition before the tax authority’s disposition and the subsequent notice of change in the amount of income, and it shall not be contested in an appeal litigation against the collection disposition unless the notice of change in amount becomes null and void (see Supreme Court Decision 2009Du1439Du.

2) Determination

A) Based on the above legal principles, with respect to the instant case, it is merely a collection disposition that orders the payment of wage and salary income tax confirmed by the initial notice of change in the income amount of this case. The Plaintiff can only contest the inherent defects of the instant disposition itself in the instant lawsuit seeking the cancellation of the instant disposition, and it cannot contest the defect except for the grounds for invalidation as to the notice of change in the income amount of this case, which is a prior disposition. However, the Plaintiff’s assertion is merely a ground for dispute over the defect of the notice of change in the income amount of this case’s disposition, and it is not an inherent illegal ground for the instant disposition itself. Thus, the instant disposition cannot be deemed unlawful unless the notice of change in income amount of this case’s notification is null and void automatically. Accordingly, it is examined whether the illegality of the notice of change in income amount of this case’s assertion by the Plaintiff constitutes the invalidity of the disposition of

B) In order to ensure that a taxation disposition is void as a matter of course, the mere fact that there is an illegal cause is insufficient to establish such disposition. It should be objectively clear that the defect is in violation of laws and regulations, and in determining whether the defect is significant and obvious, the purpose, meaning, function, etc. of the pertinent taxation disposition should be examined from a teleological perspective as well as reasonable consideration of the specific nature of the case itself (see, e.g., Supreme Court Decision 90Meu10862, Nov. 27, 1990). In addition, in cases where there are objective reasons to believe that it is subject to taxation as to a certain legal relationship or factual relations which are not subject to taxation, it can only be clarified whether it is subject to taxation accurately, even if the defect is serious, and thus, it cannot be deemed that the Plaintiff’s voluntary request for a correction of the amount of income from the company cannot be seen as invalid before it is found that the Plaintiff’s voluntary request for a correction of the amount of income from the company cannot be seen as unlawful.

C. Sub-committee

Therefore, the plaintiff's assertion that there exists a defect in the notification of change in the income amount of this case, which is a prior disposition of this case, and that such defect is succeeded to the disposition of this case is legitimate.

4. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit, and the judgment of the court of first instance is just in conclusion, and the plaintiff's appeal is dismissed as it is without merit. It is so decided as per Disposition.