Whether it constitutes a reduction or exemption of the transfer tax on self-owned farmland for at least eight years on the land cultivated by the

Even if the father of the land owner was self-employed, since the land owner is not a family member living or living together with the land owner, it cannot be viewed as a cultivation of the land in this case.

Article 69 of the Restriction of Special Taxation Act (Abatement or Exemption of Transfer Income Tax for Self-Cultivating Farmland)

1. The plaintiff's claim is dismissed.

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

The Defendant’s disposition of imposition of KRW 54,407,420 on January 5, 2006 against the Plaintiff shall be revoked.

1. Details of the disposition;

A. On March 30, 1996, the Plaintiff acquired and owned 1,881 square meters in total, including 00 square meters in ○○○-si, 00 square meters in ○○-si, 00 square meters in 3-2 Do, 910 square meters in 3-5 Do, 910 square meters in Do, and 3-6 Do, 61 square meters in Do, and transferred the same on May 24, 2005.

B. The Plaintiff filed an application for reduction or exemption of capital gains tax, alleging that the Plaintiff satisfied the requirements for reduction or exemption of capital gains tax under Article 69(1) of the Restriction of Special Taxation Act and Article 66 of the Enforcement Decree of the same Act (amended by Presidential Decree No. 19329, Feb. 9, 2006) with respect to the land of this case for at least eight years. On January 5, 2006, the Defendant issued the instant disposition to the Plaintiff for correction and notification of capital gains tax of KRW 54,407,420 for the reason that the Plaintiff failed to meet the requirements prescribed by the relevant statutes.

[Ground for Recognition] : Facts without dispute, Gap evidence 1, and Gap evidence 2-2

2. Determination of legality of disposition

A. The plaintiff's assertion

Since the Plaintiff, after acquiring the instant land, cultivated the instant land under the Plaintiff’s responsibilities and calculations for not less than eight years, it constitutes self-arable farmland and thus becomes subject to reduction of capital gains tax, and the instant disposition contrary thereto is unlawful.

(b) Related statutes;

/ Restriction of Special Taxation

Article 69 Reduction or Exemption of Transfer Income Tax for Self-Cultivating Farmland

(1) With respect to the income accruing from the transfer of land prescribed by Presidential Decree among the land which is subject to the taxation of agricultural income tax (including those subject to non-taxation, reduction and exemption, and small collection), which is cultivated directly by the resident prescribed by Presidential Decree residing in the location of such land for not less than eight years, the tax amount equivalent to 100/100 of the transfer income tax shall be reduced

(1) Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 19329 of Feb. 9, 2006)

Article 66 Reduction or Exemption of Transfer Income Tax for Self-Cultivating Farmland

(1) The term “resident prescribed by the Presidential Decree residing in the seat of any farmland” in the main sentence of Article 69 (1) of the Act means a person who has cultivated while residing in the area falling under any of the following subparagraphs for not less than eight years (including the area corresponding to the relevant area at the time of commencing the cultivation, but not corresponding thereto due to a reorganization of administrative districts):

1. An area in a Si/Gun/Gu (referring to an autonomous Gu; hereafter the same shall apply in this paragraph) where farmland is located;

2. An area within a Si/Gun/Gu adjacent to an area referred to in subparagraph 1.

(4) The term “land prescribed by the Presidential Decree” in the main sentence of Article 69 (1) of the Act means the farmland that has been cultivated by oneself for not less than eight years from the time of acquisition to the time of transfer, excluding the farmland falling under any of the following subparagraphs. In this case, in calculating the period of farmland cultivated in inherited, the period acquired and cultivated by an ancestor shall be deemed the period that the heir cultivates:

【Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 19329, Feb. 9, 2006)

Article 66 Reduction or Exemption of Transfer Income Tax for Self-Cultivating Farmland

(12) The term "direct cultivation" in Article 69 (1) of the Act means that a resident is engaged in cultivating crops or growing perennial plants on his own farmland at all times or carrying out at least half of farming works for cultivating or growing them with his own labor.

(A) Income Tax Act (amended by Act No. 4661 of December 31, 1993)

No income tax shall be levied on the following non-taxable income:

6. Capital gains:

(d) Income accruing from the transfer of land, prescribed by the Presidential Decree, which has been cultivated by himself for not less than eight consecutive years until the transfer, and is subject to the farmland tax (including cases of non-taxation, reduction and exemption, and small collection).

C. Determination

According to Article 69(1) of the Restriction of Special Taxation Act and Article 66 of the Enforcement Decree of the same Act (amended by Presidential Decree No. 19329, Feb. 9, 2006) of the same Act, a resident living in a Si/Gun/Gu where farmland is located or a Si/Gun/Gu adjacent thereto for not less than eight years has been cultivated directly for not less than eight years, and a transfer income tax on the income accruing from the transfer of land which is subject to taxation of farmland tax is exempted. Here, a taxpayer who has resided in a Si/Gun/Gu where farmland is located for not less than eight years or who has resided in a Si/Gun/Gu where farmland is located or has cultivated directly for not less than eight years is liable for exemption of transfer income tax pursuant to the above provisions (see, e.g., Supreme Court Decisions 94Nu996, Oct. 21, 194; 90Nu6293, Apr. 23, 199).

However, even according to the plaintiff's former verification, it is difficult to view that the plaintiff resided in the Si/Gun/Gu where the land of this case is located or directly cultivated the land of this case in the Si/Gun/Gu or Si/Gun/Gu adjacent thereto for not less than eight years. Rather, according to the plaintiff's testimony of Kim ○, his father, the plaintiff's father, he was in charge of farming corporation for three years from the time of acquiring the land of this case. The plaintiff worked in the architectural office located in ○○ Dong or ○ Dong, Seoul, ○○dong, or ○○dong, at least from October 1999, while residing in ○○ Dong, in ○○ Dong, and the plaintiff was residing in ○○ Dong, and then cultivated the land of this case mainly while residing in her local area, and as such, it is recognized that the plaintiff's father did not own the land of this case even if she cultivated the land of this case, it cannot be viewed that the plaintiff was a director of the Si/Gun/Gu adjacent to ○○.

Therefore, the plaintiff's assertion is without merit to further examine.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit, and it is so decided as per Disposition.