[1] Whether “a specified amount of money or the quantity of goods or services recorded by electronic or electrical means” as a taxable document under Article 3(1)10 of the former Inheritance and Gift Tax Act includes “a certificate that recorded by electronic or electrical means” (negative)

[2] The case holding that a "scam Card" similar to a pre-paid card does not constitute a "money coupon", which is a taxable document under Article 3 (1) 10 of the former Stamp Tax Act

[1] Articles 1(1) and 3(1)10 of the former Stamp Tax Act (amended by Act No. 7320 of Dec. 31, 2004) / [2] Articles 1(1) and 3(1)10 of the former Stamp Tax Act (amended by Act No. 7320 of Dec. 31, 2004)

[1] Supreme Court Decision 2002Du9537 decided Jan. 24, 2003 (Gong2003Sang, 737) / [2] Supreme Court Decision 2004Du14663 decided Nov. 25, 2005 (Gong2006Sang, 53)

KT Co., Ltd. (Law Firm Gyeong & Yang, Attorneys Jeon Young-young et al., Counsel for the plaintiff-appellant)

Head of Sungnam Tax Office

Seoul High Court Decision 2005Nu22342 Delivered on October 13, 2006

The appeal is dismissed. The costs of appeal are assessed against the defendant.

Article 1(1) of the former Stamp Tax Act (amended by Act No. 7320, Dec. 31, 2004; hereinafter the same) provides that a person who prepares a contract for the creation, transfer, or change of a right to property in the Republic of Korea and other documents evidencing such contract shall be liable to pay stamp taxes on the documents in preparation of the documents concerned. Article 3(1)10 of the same Act provides that a person who prepares a contract for the creation, transfer, or change of a right to property in the Republic of Korea shall be liable to pay stamp taxes.

The former Gift Certificates Act (amended by Act No. 4700 of Jan. 5, 1994) provides that "the merchandise coupons shall be issued at sight or promising to provide goods or services" (Article 1-2 (1)) but the former Act amended by Act No. 4700 of Jan. 5, 1994 provides that "the amount of merchandise coupons shall be recorded at least 20,000,000,000,000,000,000,000,000,0000,0000,000,0000,000,0000,000,000,000,000,000,0000,000,000,000,000,000,000,000,000,000,000,000,000,000,00,000,00.

The court below acknowledged the facts as stated in its decision after comprehensively taking account of the adopted evidence. The court below determined that the card of this case does not constitute a "money coupon" as a pre-paid card, which is a taxation document of stamp tax, in light of the following facts: although the judgment of the court below is somewhat inappropriate in its reasoning, its conclusion is justified, and it does not err in the misapprehension of legal principles as to the concept of merchandise coupon, which is a taxation document of stamp tax, as otherwise alleged in the ground of appeal.

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.

Justices Jeon Soo-ahn (Presiding Justice)