The scope of taxes to be paid by the business transferee shall be limited to the secondary tax liability.

Under the provisions of Article 41 of the Framework Act on National Taxes, any national tax, additional dues and disposition fee for arrears for which the transferee of the business is liable for the secondary tax payment, shall be interpreted as tax imposed at the time of transfer of the business, which is related to the business conducted by the transferor or by the transferor.

Article 41 of the Framework Act on National Taxes

Supreme Court Decision 80Nu150 Decided September 9, 1980, Supreme Court Decision 83Nu63 Decided November 22, 1983

Sam Young Machinery Industrial Co., Ltd., Counsel for the plaintiff-appellant

The director of the tax office

Seoul High Court Decision 82Gu427 delivered on January 12, 1983

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

Under Article 41 of the Framework Act on National Taxes, it is reasonable to interpret that the national tax, additional dues and expenses for disposition on default imposed on the transferee of a business pursuant to the provisions of Article 41 is the tax imposed on the transferor's property or on the transferor's business operated at the time of the transfer of the business (see, e.g., Supreme Court Decision 80Nu150, Sept. 9, 1980; Supreme Court Decision 83Nu63, Nov. 22, 1983); and there is no error of law by misunderstanding legal principles as to the secondary tax liability such as theory. We cannot accept any other opinion that the transferor's tax liability is established only at the time of the transfer of the business.

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 O Sung-sung(Presiding Justice)