In calculating gains on transfer of assets, the time of transfer;

According to Article 27 of the Income Tax Act, in calculating gains on transfer of assets, the time of transfer of assets shall be the date when the relevant contract is concluded and part of the consideration other than the down payment is received. Thus, even if the transferor of assets fails to make the preliminary return on gains on transfer or the final return on tax base, the time of transfer shall be the date the intermediate payment is received, and the date of transfer registration on the register

Article 27 of the former Income Tax Act (amended by Act No. 3576 of Dec. 21, 1982)

Supreme Court Decision 80Nu303 Decided March 10, 1981

Plaintiff

Head of Sungnam Tax Office

Seoul High Court Decision 82Gu155 delivered on February 8, 1983

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal are examined.

1. The court below concluded that the plaintiff sold the assets of this case to the non-party on August 21, 1980 and received part of the down payment and the intermediate payment on the same day and received the remainder on the 28th of that month. The records show that the measures are acceptable, and there is no violation of documentary evidence, such as theory of lawsuit, in the process.

2. According to Article 27 of the Income Tax Act, in calculating gains on the transfer of assets, the time of the transfer of assets shall be the date when the relevant contract is concluded and part of the comments other than the down payment is received. Thus, in calculating gains on the transfer of assets, the time of the transfer shall be August 21, 1980 after the intermediate payment is received as above. This applies to the case where the plaintiff did not make the preliminary return on the transfer margin or the final return on the tax base as to the transfer of assets, and the same applies to the case where the plaintiff did not make such a report, and the time of the transfer registration on the register is not deemed the time of transfer (see Supreme Court Decision 80Nu303 delivered on March 10, 1981). Accordingly, the decision of the court below to this purport is just and contrary. Accordingly, the appeal shall be dismissed, and the costs of the appeal shall be borne by the losing judge, and it is so decided as per Disposition by the assent of all participating Justices.

Justices Jeon Soo-hee (Presiding Justice)