It is legitimate that the list of large and habitual delinquent taxpayers was made up of the total delinquent amount, including those under litigation.

The case holding that disclosure of a large amount and habitual delinquent taxpayer's delinquent amount, including gift tax which was pending in a lawsuit, cannot be deemed as a tort.

2018 Ghana 5204629 Damages

IsaA

Korea

April 25, 2019

May 23, 2019

1. The plaintiff's claim is dismissed.

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

The defendant of the Gu office shall pay to the plaintiff 40,000,000 won with 15% interest per annum from the day following the day of service of a copy of the complaint to the day of complete payment.

1. Basic facts

A. Imposition of gift tax and the process of related litigation

On February 11, 2008, the Defendant imposed KRW 15,914,329,530 on the Plaintiff in 2006 (hereinafter “instant disposition imposing gift tax”). The Plaintiff dissatisfied with the disposition and filed an appeal with the Tax Tribunal on April 28, 2008, but was dismissed on March 10, 2010.

On May 12, 2011, the court of first instance (Seoul Administrative Court 2010Guhap*****) declared that the plaintiff's claim is dismissed on an administrative litigation against the director of the tax office seeking revocation of the disposition of this case. The plaintiff appealed against the judgment of the court of first instance, but the appellate court was the appellate court.

On February 8, 2012, the Plaintiff rendered a judgment dismissing the Plaintiff’s appeal. The Plaintiff filed a final appeal against the said appellate judgment, and the court of final appeal (Supreme Court 2012du*******) reversed the said appellate judgment on September 26, 2014 and remanded the case. After remanding the case, the appellate court rendered a judgment revoking the part exceeding KRW 2,652,346,657 of the instant disposition imposing gift tax, while partially accepted the Plaintiff’s appeal on June 12, 2015 and partly revoked the first instance judgment. While the Plaintiff re-appealed to the appellate judgment after remanding, the appellate court (Supreme Court 2015du*******) rendered a judgment dismissing the Plaintiff’s appeal on November 17, 2015.

B. The Commissioner of the National Tax Service published the list of habitual delinquent taxpayers against the plaintiff on January 2, 201 pursuant to Article 85-5 of the Framework Act on National Taxes and Article 66 of the Enforcement Decree of the same Act after deliberation by the National Tax Information Disclosure Deliberation Committee on Jan. 2, 201* 50 million or more of national taxes as of Jan. 2, 201*; "the total amount of delinquent taxes in arrears is calculated as of Oct. 201* 201*. The tax item is the largest amount of delinquent taxes if there are two or more cases in arrears; the tax item is the highest amount of delinquent taxes; the trade name and the trade name and the occupation and the occupation and the occupation of the main occupation of the main business or the delinquent taxpayer; the Plaintiff's name and the total amount of delinquent taxes in arrears * 0 million; the Plaintiff's information disclosure period is 0 million won or more; the Plaintiff's total amount of delinquent taxes 1.0 million won or more; the Defendant's information disclosure period is 00 million won.

- 28,761 million won, including gift tax on October 00, 000 to October 00, 000

- - 3,749 million won, including gift tax, from October 00 to October 0, 000. From around October 00, 000, the Plaintiff was delinquent in capital gains tax of KRW 682,918,870 in total for which the payment deadline has expired for more than one year on or around October 0, 000.

- The notified tax amount of August 31, 2010 KRW 127,624,450

- The notified tax amount of March 31, 201 501,081,050 won

- The notified tax amount of March 31, 2012 114,213,370 won

2. Relevant statutes;

It is as shown in the attached Form.

3. Determination as to the cause of action

A. The plaintiff's assertion

As provided in the proviso of Article 85-5(1) of the Framework Act on National Taxes, the Commissioner of the National Tax Service may not disclose any objection procedure against the national tax in arrears, so in any case before November 17, 201* the revocation lawsuit on the disposition of gift tax in this case is concluded, and even before November 17, 201, the Commissioner of the National Tax Service shall not disclose the list of the plaintiff who is a large and habitual delinquent taxpayer, even though he/she was subject to the Supreme Court's judgment on revocation of a large amount of disposition in this case on or before September 201* 201* the Commissioner of the National Tax Service disclosed the list of the plaintiff as a large and habitual delinquent taxpayer due to retaliation against him/her. Since the plaintiff suffered mental damage due to an illegal act by the Commissioner of the National Tax Service, the defendant is obligated to pay the plaintiff consolation

B. Determination

1) The Plaintiff is liable for damages against the Defendant on the premise that the disclosure by the Commissioner of the National Tax Service included the Plaintiff on October 20, 201* in the list of large and habitual delinquent taxpayers in the year 201* constituted a tort.

2) On October 0, 201* the Commissioner of the National Tax Service, based on Article 85-5(1) of the Framework Act on National Taxes on the basis of the following facts: (a) the Plaintiff was included and disclosed to the large and habitual delinquent taxpayers on the basis of Article 85-5(1) of the Framework Act on National Taxes; (b) the Plaintiff’s claim was dismissed in the first and second instances; and (c) the Supreme Court rendered a judgment that reversed and remanded the judgment of the appellate court on September 26, 201*.

However, Article 85-5(1)1 of the former Framework Act on National Taxes (amended by Act No. 12162, Dec. 23, 201; hereinafter the same) provides that the personal information, delinquent amount, etc. of a delinquent taxpayer whose national taxes amount to at least KRW 500 million have been in arrears shall be disclosed. According to the written evidence Nos. 1, 3, 4, 6, 10, 11 of the former Framework Act on National Taxes (amended by Act No. 12162, Apr. 30, 201); according to the written evidence No. 1, 3, 4, 6, 10, and 11 of the former Framework Act, the head of the Seoul Regional Tax Office sent a prior notice to the Plaintiff that the Plaintiff is subject to high and habitual delinquent taxpayer disclosure around March 31, 201* the Plaintiff’s financial status and the difficulty in corporate management due to decline in corporate credit rating, a public official of the Seoul Regional Tax Office affiliated with the Plaintiff around October 201*.

In examining whether the Plaintiff was a person, the amount of delinquent local taxes in arrears of the gift tax on February 29, 2008 is excluded from the total amount of delinquent local taxes (based on the Supreme Court Decision (2015Du2015********)) on the ground that the Plaintiff paid at least 30% of the amount of delinquent local taxes in arrears of the transfer income tax on the grounds that the Plaintiff was still dissatisfied with the disposition of gift tax in arrears.

Even if the Commissioner of the National Tax Service, it is questionable whether the amount of the gift tax imposed by habitually delinquent taxpayers pursuant to the disposition imposing the gift tax of this case can be evaluated as appropriate in light of the following: (i) the Plaintiff’s failure to file an appeal is more than 500 million won even if the amount of national tax is in arrears at the time of 201 year; (ii) the Plaintiff’s failure to file an appeal is subject to disclosure of the list of delinquent taxpayers under the proviso to Article 5 of the Framework Act on National Taxes; (iii) the Supreme Court’s ruling on September 26, 201 201 * the Plaintiff’s failure to file an appeal on the grounds that it falls under the scope of the disposition imposing the gift tax of this case, including the amount of delinquent taxpayers under the proviso to Article 8 of the Framework Act on National Taxes, and that it is not reasonable for the Plaintiff to disclose the list of delinquent taxpayers under the proviso to Article 8 of the Framework Act on National Taxes, based on the following reasons: (iv) the Plaintiff is still subject to disclosure of the list.

Therefore, the plaintiff's claim based on the premise that disclosure by the Commissioner of the National Tax Service included the plaintiff in the list of large and habitual delinquent taxpayers in 201* is illegal cannot be accepted without further review.

4. Conclusion

As long as it is difficult for the Commissioner of the National Tax Service to deem that the disclosure of the Plaintiff’s claim by including the Plaintiff in the list of large and habitual delinquent taxpayers constitutes a tort, the Plaintiff’s claim is dismissed without further determination as to the Defendant’s defense, such as the expiration of the extinctive prescription of damage claim. It is so