Methods of calculating gains on transfer at the time of enforcement of the former Corporate Tax Act (amended by Act No. 3577, Dec. 21, 1982)

According to the relevant provisions of Article 59-2(3) of the former Corporate Tax Act (amended by Act No. 3270 of Dec. 13, 1980 and Article 59-2(3) of the same Act), in calculating gains on transfer, which is the tax base of special surtax, the transfer value or acquisition value shall be different from the actual transaction value or the standard market value, and either of the above transfer or acquisition value shall be determined on the basis of the actual transaction value or the standard market value. One of the above transfer or acquisition value, which is different from the actual transaction value, shall not be allowed on the basis of equity. Thus, assets received free of charge shall be considered as the acquisition value at the time of the actual acquisition, but all the transfer and acquisition value shall be calculated on the basis of the standard market value at the time of the actual acquisition, if the normal value at the time of the actual acquisition is unclear, and if it is unclear, all such transfer and acquisition value shall be calculated on the basis of the

Article 59-2 (3) of the former Corporate Tax Act (amended by Act No. 3270 of Dec. 13, 1982) and Article 59-2 (3) of the former Corporate Tax Act (amended by Act No. 3577 of Dec. 21, 1982)

Supreme Court Decision 82Nu557 Decided April 26, 1983 81Nu220 Decided December 13, 1983

Supreme Court Decision 85Nu71 Decided February 24, 1987

Senior Foundation:

The Director of Gangnam District Office

Seoul High Court Decision 85Gu1236 delivered on July 2, 1986

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal by the defendant litigant are examined.

. According to Article 59-2 (3) of the Corporate Tax Act (amended by Act No. 3270, Dec. 13, 1980) or Article 19-1 of the Enforcement Decree of the Corporate Tax Act (amended by Act No. 357, Dec. 21, 1982) which was enforced at the time of transfer of the land at 197.3.14, the acquisition value of the land at 197.1, which is the base of special surtax at the time of transfer, shall be determined by the Presidential Decree No. 197.3.1, and the acquisition value of the land at 197.1, which is the actual market value at the time of transfer, shall be determined by the Presidential Decree No. 297.1, Dec. 27, 1976.1, 201; 3.1.1.1. The acquisition value of the land at the time of transfer shall be determined by the Presidential Decree No. 97350, Feb. 29, 1980

Under the same view of the court below, although the actual transfer value of each of the above lands is unclear, the acquisition value, i.e., the market price as of January 1, 1968 or the market price as of January 1, 1975, and the land contributed free of charge, i.e. the land at the time of acquisition, i., the land at the time of acquisition, i.e. the land at the time of acquisition, shall be the premise of determining the tax base amount of the defense tax of this case, and in calculating the tax base amount of special surtax, all the transfer and acquisition value shall be calculated on the basis of each taxation standard market price as of the time of transfer and gratuitous contribution or acquisition respectively, and there is no error of law by misunderstanding

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

Justices Lee Jin-Post (Presiding Justice)