Whether "land without any building on rent" under Article 18 (3) 11 of the former Enforcement Rule of the Corporate Tax Act means only the land without a building owned by the relevant corporation.

The term "land which is not a building on rent" under Article 18 (3) 11 of the former Enforcement Rule of the Corporate Tax Act refers to the land which is used directly for a building under the above provision's purpose and subparagraph 2 of the same paragraph, and is used for the lease of real estate for non-business purpose in light of the fact that the land exceeding a certain basic area is defined as real estate for non-business purpose of a corporation, and therefore, it is not a building on the land that is not a building on the land owned by a corporation but a building on the leased land by a lessee with the approval of a corporation, such as the construction of a building on the land leased by a corporation by a lessee with the approval of the corporation, it shall not be deemed that the land

Article 18-3 of the former Corporate Tax Act (amended by Act No. 4282, Dec. 31, 1990); the Enforcement Decree of the same Act (amended by Presidential Decree No. 13195, Dec. 31, 1990); Article 43-2 of the same Act; Enforcement Rule of the same Act (amended by Ordinance of the Ministry of Finance and Economy No. 1818, Apr. 4, 1990); Article 18 of the same Act

Mayang Commercial Corporation

Head of Central Tax Office

1. The defendant's disposition of imposition of 59,851,350 won corporate tax for December 16, 1989 against the plaintiff on December 1989, and 10,093,330 won for corporate tax for 19,851,350 won and corporate tax for 19,093,330 won for 1989, and corporate tax for 72,704,240 won for 14,390,770 won for 1989, respectively.

2. The costs of lawsuit shall be borne by the defendant.

The same shall apply to the order.

(1) On January 4, 1983, the plaintiff's business purposes of real estate rental business, etc. leased 893.41 square meters (hereinafter "the site in this case") remaining 196.72 square meters excluding the amount being used by the plaintiff for parking lots among 49-12 lots, 1,290.12 square meters owned by Jung-gu, Seoul, Jung-gu, 1983, 30, 198.44. The non-party company constructed a reinforced concrete building with 12 stories above the ground in this case with the plaintiff's approval on January 14, 1984, 30, 197, 197, 30, 197, 197, 30, 196, 97, 196, 196, 30, 198, 196, 196, 48, 196, 196, 1986, 196, 4, 197.

(2) As to the Defendant’s assertion that the instant disposition was lawful on the grounds of the above disposition and the applicable Acts and subordinate statutes, the Plaintiff asserted that the instant disposition was unlawful, despite that the instant land was a building on the ground, and it does not constitute a real estate for non-business use of a corporation under Article 18-3(1)3 of the Corporate Tax Act, Article 43-2(5) of the Enforcement Decree of the Corporate Tax Act, and Article 18(3)11 of the Enforcement Rule of the Corporate Tax Act.

Therefore, Article 9(1) of the Corporate Tax Act provides that the income of a domestic corporation for each business year shall be the amount calculated by deducting the total amount of losses which belongs or comes to belong to the relevant business year from the total amount of earnings that belongs or comes to belong to such business year. Paragraph (3) of the same Article provides that "the amount of losses" means the amount of losses incurred from transactions which reduce the net assets of the relevant corporation except for the refund of capital or shares, disposal of surplus funds, and those which are stipulated in this Act. Article 12(2)7 of the Enforcement Decree of the Corporate Tax Act provides that the interest on loans shall be one of the losses and the acquisition and holding of excessive land for the purpose of preventing the effective and proper use of the land by the method of heavy taxation and indirectly compelling the use of the land as it is for non-business purpose, and Article 18-3(1)3 of the Corporate Tax Act provides that the land shall not be included in deductible expenses for the purpose of Article 18-1 of the Corporate Tax Act to the maximum extent of the revenue amount of the relevant corporation to be used.

Therefore, this case's disposition imposing corporate tax in 1988 and the tax base in 135,086 shall be deemed unlawful on the ground that the above building was constructed on the site of this case with the permission of the plaintiff on January 14, 1984 and there was a building on the site of this case. Thus, the disposition imposing corporate tax in 1988 and the tax base in 135,086 of the tax base in 1988 shall be deemed to be unlawful (the disposition of this case's disposition of imposing corporate tax in 1988 and the tax base in 1986 in 198 in 200 in 2000 in 2000 in 2000 and 198 in 2000 in 2000 in 2000 and 198 in 2000 in 2000 in 200,000 won in 200,000 won in 198 in 201.

(3) Thus, since the disposition of this case is unlawful, the plaintiff's claim seeking its revocation is justified, and the costs of the lawsuit are assessed against the losing defendant. It is so decided as per Disposition.

Judges Choi Han-ro (Presiding Judge)