Article 41 of the Framework Act on National Taxes, meaning of a transferee

The transferee of a business under Article 41 of the Framework Act on National Taxes, Article 22 of the Enforcement Decree of the same Act, and Article 22 of the Enforcement Decree of the same Act refers to the person who comprehensively succeeds to all rights and obligations concerning the business as well as the business facilities, and shall be a person who has succeeded to legal status to the same extent as the transferor takes over all rights and obligations concerning the business, such as goodwill and claims and obligations concerning the business.

Article 41 of the Framework Act on National Taxes, Article 22 of Enforcement Decree of the Framework Act on National Taxes

Supreme Court Decision 84Nu560 Delivered on February 13, 1985

Han-ju Pharmaceutical Co., Ltd., Counsel for the plaintiff-appellant

Head of Ansan Tax Office

Seoul High Court Decision 83Gu1100 delivered on April 18, 1985

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal by the defendant litigant are examined.

According to the reasoning of the judgment below, the court below acknowledged that the transferee of a business under Article 41 of the Framework Act on National Taxes and Article 22 of the Enforcement Decree of the same Act comprehensively succeeded to all the rights and obligations in relation to the business as a whole, and interpreted that the transferee should have succeeded to the legal status to the same extent as the transferee by taking over not only the business facilities but also the rights and obligations related to the business, such as credits and obligations, and all rights and obligations related to the business. The plaintiff of this case acquired the above company's permission for manufacture of medicines and the machinery and facilities installed in the Ansan Factory from the non-party corporation, Co., Ltd., Ltd. on November 22, 1982 after evaluating the fact that the transferee excluded the above transfer from the above transfer, and therefore, it is difficult to view the plaintiff as the transferee of the business under Article 41 of the Framework Act on National Taxes and Article 22 of the Enforcement Decree of the same Act, and therefore, it cannot be seen as a legitimate person under the judgment below's prior review.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Kim Young-ju (Presiding Justice)