1. The Defendant’s corporate tax of KRW 300,311,508 (including additional taxes) for the business year 2014 against the Plaintiff on March 9, 2016.

Details of the disposition

The Plaintiff is a non-profit domestic corporation (hereinafter referred to as “non-profit corporation”) established with the approval of the Minister of Environment on December 23, 2013 with the aim of promoting public interests and contributing to improving the people’s lives, by vicariously performing the duty to recover and recycle products and packing materials of the Korea Packing Business Mutual Aid Association (hereinafter referred to as the “instant Cooperatives”) pursuant to Article 28-2 of the Act on the Promotion of Saving and Recycling of Resources (hereinafter referred to as the “Resources”) as amended on May 22, 2013.

On March 31, 2015, the Plaintiff reported corporate tax for the business year 2014 to the effect that there is no additional tax to be paid as a non-profit corporation with only interest income to the Defendant.

On the other hand, on March 18, 2015, the Plaintiff asked the National Tax Service as to whether the revenues from subsidies received from the instant association (hereinafter referred to as “the revenues from dispute subsidies”) were for profit-making business under the Corporate Tax Act while engaging in a business that performs the same recycling business as an agent business performed by the association for six items (Plasts, bottles, glass cans, metal cans, gluenes, paper factorings) before being delegated with the instant association’s duty of recycling by proxy. On July 9, 2015, the National Tax Service respondeded that the instant business constituted a profit-making business pursuant to Article 3(3) of the Corporate Tax Act.

On August 13, 2015, according to the above National Tax Service’s response, the Plaintiff filed a return with the Defendant on the deadline for corporate tax of 300,311,508 (including additional taxes) for the business year 2014 by deeming the pertinent subsidy revenue as the revenue amount of profit-making business. On March 29, 2016, the Defendant notified the Plaintiff of the deadline to determine the tax base and tax amount according to the Plaintiff’s return after the deadline.

(hereinafter “instant disposition”). Accordingly, the Plaintiff is dissatisfied with the instant disposition and the Tax Tribunal on June 23, 2016.