Seoul Administrative Court 2007Guhap18413 ( July 15, 2008)

National High Court Decision 2005Du1575 (Ob. 15, 2007)

Appropriateness of the taxation disposition against the holder of a specified bond

The purport of the Act on the Real Name Financial Transactions is that specific bonds under the said Act need not be taxed on the source of funds to purchase specific bonds from persons holding specific bonds, and the purport is not to impose taxes on all financial transactions incurred after undergoing the procedures for purchasing specific bonds.

The contents of the decision shall be the same as attached.

Article 9 (Special Claim)

1. All appeals filed by the plaintiffs are dismissed.

2. The costs of appeal are assessed against the Plaintiffs.

The judgment of the first instance shall be revoked. The imposition of each gift tax stated in the attached Form No. 1 written by the defendant against the plaintiffs shall be revoked.

1. Quotation of judgment of the first instance;

The reasons to be explained by this court are the same as the entry of the first island in the reasoning for the judgment (except for the third conclusion part), Article 8 (2) of the Administrative Litigation Act, Article 420 of the Civil Procedure Act, and Article 420 of the Civil Procedure Act.

2. The part to be mard;

(a) Parts to be deleted;

Plaintiff Na○○’s business on the settlement documents of each company at the end of the eightth reduction.

The marks involved in it have not been found and have not been deleted.

B. Additional parts

The following shall be added to the 13th anniversary thereof:

The plaintiff Na○ asserts that the disposition imposing gift tax on the deposit of this case is unlawful in accordance with the purport of the Act on Real Name Financial Transactions and Confidentiality (amended by Act No. 5552 of September 16, 1998, and hereinafter referred to as the "Act on Real Name Financial Transactions") that prevents the source of the deposit of this case from using it as taxation data if it is more and more, as alleged by the defendant.

Article 9 of the Addenda to the Act on Real Name Financial Transactions (Act No. 5493, Dec. 31, 1997) provides that "No taxation shall be imposed on the holder of specific bonds despite tax-related Acts, and the tax liability shall be imposed prior to the purchase of the bonds with taxation data." It takes into account the fact that the unregistered transaction was not illegal prior to the enforcement of the Real Name Financial Transactions System, and that when the Real Name Financial Transactions System is implemented, a huge amount of funds traded in the name of the non-real name is at a price lower than the market interest rate, and thus, it is possible to issue specific bonds at a price lower than the market interest rate and impose de facto assistance on the acquirer, and at the same time, to cultivate funds being traded in the existing voice, the meaning of the above provision is to interpret the provision to the effect that it would not be imposed upon the plaintiff's purchase of the specific bonds, and to the effect that it would not be imposed upon the plaintiff's purchase of the bonds after the use of the new bonds.

The argument is without merit.

3. Conclusion

If so, the plaintiff's claim in this case is dismissed for each reason, and the judgment of the court of first instance is just, and the plaintiff's appeal is dismissed for each reason, and it is so decided as per Disposition.