meaning of temple forest subject to exemption from aggregate land tax under the Local Tax Act;

In light of the provisions of Article 234-12 subparag. 7 of the Local Tax Act, Article 194-8 subparag. 1 of the Enforcement Decree of the same Act, and Articles 4(1)1 and 5 of the Management of Mountainous Districts Act, which first presented as the basis for the classification of mountainous districts and the determination of non-taxation of local taxes, temple forests subject to exemption from aggregate land tax pursuant to the above Local Tax Act refer only to forests owned by temples for the purpose of preserving scenic landscapes in the temple regardless of whether they are preserved mountainous districts of the Administrator of the Korea Forest Service, or for the purpose of raising operational expenses and materials necessary for the operation of temples.

Article 234-12 subparagraph 7 of the Local Tax Act, Article 194-8 subparagraph 1 of the Enforcement Decree of the Local Tax Act, Article 4 (1) 1 and Article 5 of the Management of Mountainous Districts Act

Madio Maduls

Spocheon Market

September 6, 2004

1. The plaintiff's claim is dismissed.

2. Litigation costs shall be borne by the plaintiff.

The defendant's disposition of imposing local tax against the plaintiff on October 10, 2003 shall be revoked.

1. Details of the instant disposition

[Reasons for Recognition] A3-2, A4, A6-1, 2, A7, A8, A9, A10-1, 2, A11, A12, A13, B1, 2, and the purport of the whole pleadings

A. On May 4, 2001, the Plaintiff received donation from the non-party Kim Dong-dong-si, 76-3 forest 1,135,189m2 (hereinafter “the forest of this case”) of the 19th day of the same month, from the non-party Kim Dong-dong-si, and completed the registration of ownership transfer on the 19th day of the same month.

B. On October 10, 2003, the Defendant deemed that the forest of this case was not used directly for the religious business and imposed KRW 4,540,990 on the aggregate land tax of 2003.

C. Meanwhile, around April 20, 2004, the Administrator of the Korea Forest Service designated and announced the forest of this case as a preserved mountainous district (a mountainous district for public interest).

2. Determination:

A. The parties' assertion

(1) The plaintiff asserts that the forest of this case is a temple forest and thus it is exempt from taxation under the Local Tax Act. The defendant asserts that the temple forest of this case under the Mountainous Districts Management Act is a forest owned by the temple and is designated and publicly notified as a preserved mountainous district by the Administrator of the Korea Forest Service. The temple forest under the Local Tax Act refers only to the forest owned by the temple for the purpose of preserving the scenic beauty in the temple and securing operating expenses and materials necessary for its operation, and that the temple forest under the Local Tax Act refers to only the forest owned by the temple for the purpose of raising materials. However, even if the Administrator of the Korea Forest Service designates and publicly notified the forest of this case as a temple forest under the Mountainous Districts Management Act, it cannot be viewed that the forest of this case

(2) As to the plaintiff's assertion that the forest land tax is exempt on the aggregate land tax since the plaintiff acquired the forest land of this case and did not directly provide it for religious business, the plaintiff did not constitute the subject of exemption from aggregate land tax under the Local Tax Act, since it did not directly provide it for religious business, since the plaintiff acquired the forest of this case and did not directly provide it.

B. Relevant statutes

It is as shown in the attached Form.

C. Whether the instant disposition is lawful

(1) The meaning of temple forest under the Local Tax Act

Article 234-12 subparagraph 7 of the Local Tax Act, Article 194-8 subparagraph 1 of the Enforcement Decree of the Local Tax Act provides that temple forests shall be exempt from aggregate land tax, and there is no provision on the scope of temple forests.

However, according to Articles 4(1)1 and 5 of the Management of Mountainous Districts Act, a preserved mountainous district across the country is classified into a preserved mountainous district and a quasi- conserved mountainous district, and a preserved mountainous district is classified into a mountainous district for forestry use and a mountainous district for public interest. The Administrator of the Korea Forest Service may designate a mountainous district necessary for public interests, such as prevention of disasters, protection of water resources, conservation of natural ecosystems, conservation of natural scenery, preservation of natural scenery, promotion of national health and relaxation, including a mountainous district of temple forest. Where the Administrator of the Korea Forest Service designates a preserved mountainous district, he/she shall designate and publicly notify such mountainous district after deliberation by the Central Mountainous District Management Committee, notify the head of the relevant administrative agency thereof, and the head of the relevant Si/Gun/autonomous Gu shall make it available for public perusal. According to the above provisions of the Local Tax Act, if the land is used for profit-making business or used for a fee or not directly used for the purpose, it shall be limited to land subject to non-taxation.

In light of the provisions of the Local Tax Act and the Management of Mountainous Districts Act, first of all, in determining the classification of mountainous districts and the subject of local tax exemption, a temple forest subject to exemption of aggregate land tax under the Local Tax Act refers only to a forest owned by a temple for the purpose of preserving the landscape of a temple, or operating expenses and materials necessary for its operation, regardless of whether it is designated as a preserved mountainous district (a mountainous district for public interest) in the Korea Forest Service.

(2) Furthermore, it is difficult to view that the instant forest is a temple forest in light of the meaning of the temple forest under the provisions of the Local Tax Act, and it is difficult to view that the instant forest is directly used for religious business on the ground that the instant forest is not a temple forest in light of the meaning of the temple forest under the provisions of the Local Tax Act, even though the instant forest falls under the temple forest and was used directly for religious business in accordance with the Plaintiff’s assertion, even if there was an application for a building permit, and there was an application for a construction permit, such as the portrait file, the instant forest, and the instant forest without a temple, or there was an annual event or a climatic event in the instant forest.

(3) Thus, the disposition of this case where the defendant imposed the aggregate land tax on the plaintiff as to the forest of this case is legitimate, and the plaintiff's assertion is without merit.

3. Conclusion

Therefore, the plaintiff's claim is dismissed. It is so decided as per Disposition.

Judge Han-ho (Presiding Judge)