The appropriation of national tax refund under Article 51 (2) of the Framework Act on National Taxes and its retroactive effect (negative)

If a refund of national tax is appropriated under Article 51(2) of the Framework Act on National Taxes, it is similar to a set-off under the Civil Act in that a refund obligation and a tax claim ceases to exist on an equal amount, but the requirements, procedures, methods and effects of appropriation are determined in accordance with the tax-related Acts. Unless the provisions of Article 493(2) of the Civil Act on the retroactive effect of set-off are provided, the effect of appropriation that is returned to the general principles takes place only in the future from the date of the act, and therefore, the obligation to return a refund cannot be said to be extinguished retroactively to the payment period of the national tax appropriated

Article 51 (2) of the Framework Act on National Taxes

Plaintiff 1 et al., Counsel for the plaintiff-appellant-appellee

Korea

Seoul High Court Decision 87Na3035 delivered on November 2, 1987

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

As to the grounds of appeal by Defendant Litigation Performers:

According to the reasoning of the judgment below, on October 23, 1986, the plaintiffs received a seizure and collection order against the defendant, such as the national tax refund against the defendant of the above company by an executory exemplification of the judgment claiming the amount of wages against the international unemployment company, and served the above order to the defendant around that time, and the above company filed a lawsuit against the defendant to revoke the imposition of corporate tax amounting to KRW 60,964,414, and KRW 13,019,163, and KRW 13,109,649, and KRW 2,208,056, and KRW 13,000,000 among the defendant's disposition of imposition, the court below acknowledged that the above judgment was final and conclusive, and determined that the defendant appropriated the above company with the payment period of corporate tax amount of KRW 430,938,180, which was 1985 with the above company's claim that the defendant appropriated the above amount of corporate tax refund and KRW 2630,626,260,26,26,26,0,0,0,0,00,0,0.

In a case where a refund of national tax is appropriated under Article 51(2) of the Framework Act on National Taxes, the obligation to return the refund expires retroactively from the time when the payment period of national tax arrives, and the obligation to return the refund expires. In this respect, the refund obligation and the tax claim are extinguished on an equal amount. In this respect, although the refund obligation and the tax claim are similar to the offset under the Civil Act, the requirements, procedures, methods and effects of the appropriation are determined in accordance with the tax law. Unless the provisions of Article 493(2) of the Civil Act on the retroactive effect of the offset are provided, the effect of appropriation that is returned to the general principle shall take effect only in the future from the date when the act is performed

The court below's acceptance of the plaintiffs' claim to the same purport is just and acceptable.

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 Yoon Young-young (Presiding Justice)