Where the sale price is determined in proportion to the area of the land that is the object of a collective sale, the decision on whether to impose gains on transfer shall be made by parcel on the basis of the amount calculated in proportion to the standard market price of each parcel (negative)

In the event that a total sale price is determined by multiplying the total sale price by the usual price in the total area without any heating by parcels of lots, the tax authority recognizes that the total sale price under the relevant sales contract is the actual transaction price. The disposition imposing capital gains tax on the basis of the transfer price by designating the amount calculated by calculating the total sale price in proportion to the standard market price of each parcel of lots on the ground that the transaction amount by parcels of lots cannot be trusted merely on the grounds that it is substantially unreasonable without any assertion and proof as to the special reasons, such as that it is substantially unfair.

Article 23 of the Income Tax Act

[Plaintiff-Appellant] Plaintiff 1 and 1 other (Law Firm Gyeong, Attorneys Park Jae-soo et al., Counsel for plaintiff-appellant)

Mediation Board et al.

Head of Seocho Tax Office and one other

Seoul High Court Decision 89Gu4378 delivered on December 13, 1989

The appeal is dismissed.

The costs of appeal shall be assessed against the defendants.

1. We examine the first ground for appeal.

According to the reasoning of the judgment below, the court below found that the plaintiffs transferred the land of this case to the Non-Party Educational Institute for New Reconstruction by lot pursuant to the real estate sales contract (No. 6-2 and No. 3) which is the evidence of the city, that the transfer value of the land of this case is 723,360,000 won per 40 won per 7,000 won per 723,000 won per 40,000 won per 40,000 won per 40,000 won per 10,000 won per 10,000 won per 40,000 won per 10,000 won per 20,000 won per 10,000 won per 10,000 won per 10,000 won per 30,000 won per 180,000 won per 30,000 won per 14,000 won per 30.

2. We examine the second ground for appeal.

In calculating necessary expenses for the transfer of land of this case, the court below is clear in the record that it is legally calculated pursuant to Article 45 of the Income Tax Act and Article 94 (5) 1 of the Enforcement Decree of the same Act in calculating necessary expenses for the transfer of land of this case. Thus, there is no argument that the court below calculated necessary

Therefore, the appeal is dismissed, and all costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Lee Chang-chul (Presiding Justice)