Seoul Administrative Court 2012Guhap4058 (Law No. 12, 2013)

reserve funds for retirement allowances appropriated for the payment of retirement allowances shall constitute personnel expenses eligible for tax credits under the Restriction of Special Taxation Act.

The retirement allowance reserve is that the corporation distributes the retirement allowance in advance during each period of the officer or employee's service and sets the specified amount at the expense for each period, and the retirement allowance is paid with this reserve. Therefore, the provisions of tax credit for the retirement allowance shall apply to the retirement allowance.

2013Nu13534 Revocation of revocation of a request for corporate tax revision

AA Automobile Corporation

Head of Seocho Tax Office

Seoul Administrative Court Decision 2012Guhap4058 decided April 12, 2013

October 2, 2013

October 23, 2013

1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

1. Purport of claim

The defendant's rejection of correction of corporate tax for the business year 2008 that the plaintiff on June 14, 2012, the corporate tax for the business year 2009, the corporate tax for the business year 2009, and the corporate tax for the business year 2010 shall be revoked.

2. Purport of appeal

The judgment of the first instance is revoked. The plaintiff's claim is dismissed.

1. Quotation of judgment of the first instance;

This court's reasoning is as follows, except for the addition of the decision of this court as to the defendant's argument that is especially emphasized or re-emphasized by this court, since it is the same as the entry of the reasons in the judgment of the court of first instance, it shall be quoted in accordance with Article 8 (2) of the Administrative Litigation Act and the main sentence of

2. Judgment on the defendant's assertion

Considering the fact that the allowance for severance benefits can only be appropriated as expenses for the pertinent business year, but not paid directly for research and development activities, and that the research and development expenses subject to the tax credit should be limited to the expenses that can be compared with each other for each taxable year, the Defendant asserts that the allowance for severance benefits for the instant researchers cannot be subject to the tax credit.

According to Article 33(1) of the Corporate Tax Act (amended by Act No. 10423, Dec. 30, 2010), allowances for severance benefits shall be included in the calculation of losses within the scope of the amount calculated as prescribed by the Presidential Decree, if a domestic corporation appropriates allowances for severance benefits to appropriate for the retirement benefits of executives or employees during each business year. Thus, the allowances for severance benefits shall be included in the calculation of losses within the scope of the amount calculated as prescribed by the Presidential Decree. Thus, the allowances for severance benefits shall be included in the calculation of losses in the calculation of the income amount for the relevant business year, as well as the allowances for severance benefits. ② The allowances for severance benefits shall not be included in the calculation of losses regardless of the title thereof (see Supreme Court Decision 97Nu14194, Jun. 25, 199; Supreme Court Decision 9Nu14194, Jun. 25, 199). Thus, it shall not be included in the general provisions of the Act or the Enforcement Decree of the Special Tax Treatment Act.

Therefore, the defendant's above assertion is without merit, since the disposition of this case, which was made on different premise.

3. Conclusion

Thus, the defendant's appeal is dismissed as it is without merit.