Defendant

A Imprisonment with prison labor of one year and six months and fines of 520,000,000 won, and Defendant B shall be punished by a fine of 30,000,000 won.

Punishment of the crime

"2016 Gohap 341"

1. Defendant A established Defendant B (hereinafter only referred to as “Defendant A”) on February 1, 2010 for the purpose of the malicious manufacturing business, wholesale and retail business, and fashion miscellaneous business, etc., and Defendant A works as a company director (from February 1, 2010 to January 31, 2013), a joint representative director (from February 1, 2013 to March 13, 2013), and a single representative director (from March 14, 2016 to March 14, 2016), and is in charge of overall management of the business affairs of the said company, including sales, purchase, and payment of taxes.

Defendant

A committed the following crimes by omitting or underreporting the sales sales sold in cash among the total sales sales sold in the actual place of business, such as bad faith, at the store of the Defendant Company, with intent to evade the value tax and corporate tax.

Defendant

A, around July 25, 201, at the Geumcheon Tax Office located 11-21, 152-gil, Geumcheon-gu, Seoul, as Geumcheon-gu, and when reporting the value-added tax for the first period of January 201, 201, unlike the actual business site of each store, “1,001,537,972 won” in the indictment of KRW 1,001,57,972 appears to be a simple clerical error.

A total of KRW 899,359,367 from July 25, 2011 to January 25, 2013, including the omission of a report on sales, evaded a total of KRW 100,153,797.

As a result, Defendant A evaded the total amount of value added tax and corporate tax equivalent to the omitted amount of the above sales by fraud or other improper act.

2. The Defendant Company’s representative Defendant Company: (a) committed fraud or other unlawful act with respect to the Defendant Company’s business as described in paragraph (1) above; (b) thereby evading the total amount of value added and corporate tax equivalent to KRW 899,359,367 as indicated in the following crime list.

On July 25, 2011, 100,153,797, value-added tax of 100,153,797, and value-added tax of 25 January 2011, 201, the second value-added tax of 183,65,670, 6703, July 25, 2012, 201.