Until approval of an organization deemed a corporation is obtained, it shall not be deemed a corporation under tax law.

Until the Plaintiff obtains approval from an organization deemed a corporation on February 14, 2014, the grounds asserted by the Plaintiff cannot be deemed a corporation under tax law.

Article 13 of the Framework Act on National Taxes.

2015Gudan510 Revocation of Disposition of Imposing capital gains tax

AAD Association

The superintendent of the tax office

June 5, 2015

July 3, 2015

1. The plaintiff's claim is dismissed.

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

Cheong-gu Office

The Defendant’s disposition of imposition of capital gains tax for the year 201 against the Plaintiff on January 13, 2014 is revoked.

1. Details of the disposition;

A. The Plaintiff, as an incorporated foundation’s church affiliated with the H General Assembly, owned from June 11, 2004, the PP, which is a member of the H General Assembly, a donation of ○○○-7 ○○-7 dong (hereinafter “instant real estate”) and transferred the same to L on May 30, 201, but did not file a transfer income tax.

B. On January 13, 2014, the Defendant deemed that a religious organization deemed an individual under the Framework Act on National Taxes transferred real estate, and rendered the instant disposition that determined and notified the Plaintiff of the capital gains tax reverted to 2011.

C. The Plaintiff appealed and filed an appeal with the Tax Tribunal on August 18, 2014, but was dismissed on November 24, 2014.

[Ground of recognition] Facts without dispute, entry of evidence No. 1, purport of the whole pleadings

2. Whether the disposition is lawful;

A. The plaintiff's assertion

Around December 16, 1994, the Plaintiff was working as a nonprofit corporation from the time of the Plaintiff’s registration as a business operator until December 16, 2012, and was not approved by “organization deemed as a corporation because it was unable to hear any explanation about tax benefits from the Defendant from the Defendant until December 2012. Meanwhile, the Plaintiff obtained approval of “organization deemed as a corporation” on February 14, 2014, and thus, the transfer income of the instant real estate transferred on May 30, 201 can be included in the profits and losses of the corporation. Therefore, the Plaintiff is a “organization deemed as a corporation” and there is no liability to pay corporate tax because it is a non-profit domestic corporation.

B. Relevant statutes

It is as shown in the attached Form.

C. Determination

Article 13(2) of the Framework Act on National Taxes provides that an unincorporated association, foundation, or other unincorporated organization, which is deemed a corporation, shall meet all the requirements of the following subparagraphs, and the representative or manager shall be deemed a corporation and shall also be subject to the application of this Act and other tax-related Acts by deeming that it has obtained approval from the head of the competent tax office. In such cases, the continuation and homogeneity of the relevant association, foundation, or other organization shall be deemed maintained. Article 3(1)1(d) of the Enforcement Decree of the Corporate Tax Act provides that the first business year starting date of the "organization deemed a corporation" shall be the date of approval from the head of the competent tax office having jurisdiction over the place of tax payment, while Article 3(2) of the Enforcement Decree of the same Act provides that where the profit and loss actually accrued prior to the starting date of the first business year actually reverts to the corporation, such profit and loss may be included in the profit and loss of the relevant corporation within the scope not exceeding one year

Until the Plaintiff obtained approval of "organization deemed a corporation" on February 14, 2014, the grounds alleged by the Plaintiff alone cannot be deemed a corporation under tax law. In addition, the fact that the instant real estate was transferred on May 30, 201 exceeding one year from the date the Plaintiff was approved as "organization deemed a corporation" and on May 30, 2011, the same applies to the transfer of the instant real estate. As such, if the transfer profit of the instant real estate exceeds one year in the first business year, it cannot be included in the profits and losses of the relevant corporation solely on the ground

Therefore, the plaintiff's assertion is without merit.

3. Conclusion

Thus, the plaintiff's claim shall be dismissed as it is without merit.