The shares retired without compensation due to the conversion of debt investment according to the rehabilitation decision shall not be deemed to have been confirmed as an unrecoverable claim, and thus, it shall not be subject to bad debt tax deduction.

The shares which were immediately retired after conversion of the debt according to the rehabilitation decision shall not be deemed to have been confirmed as bonds not recovered. Therefore, it shall not be subject to a bad debt tax deduction.

Article 17-2 (Deduction of Bad Debt Tax Amount)

Cheongju District Court-2015-Gu Partnership-10921 ( November 19, 2015)

○ Stock Company

○ Head of tax office

October 29, 2015

November 19, 2015

1. The Defendant’s imposition of value-added tax for the second period of No. 2012 against the Plaintiff shall be revoked.

2. The costs of the lawsuit are assessed against the defendant.

Separated total amount of claims

Table Omission of the Table

/ The change of rights of rehabilitation secured creditors and rehabilitation creditors

��회생담보권 상거래채무

- ○○ Co., Ltd.: 51.99% of the payable amount shall be repaid in cash on the date of repayment, and the remainder

amount to be converted into full amount. The conversion into equity shall be substituted for the repayment of such bonds on the date of the effective date of the shares newly issued by the company, but the shares issued by such conversion into equity shall be retired without

��회생채권 중 상거래채무

- 50% of the amount of debt to be repaid shall be exempted, 33.13% shall be paid in cash on the date of reimbursement, and the remaining amount shall be converted into full amount. The conversion into equity shall be substituted by the repayment of the claim in question on the date of entry into force of the shares newly issued by the company, but the shares issued by

Cheong-gu Office

The same shall apply to the order.

1. Details of the disposition;

A. On January 3, 2009, the Plaintiff filed an application for commencing a rehabilitation procedure with ○○ District Court ○○○○○○○○○○○○○○, and

On December 10, 2012, the following amendment draft rehabilitation plan (hereinafter referred to as "the draft rehabilitation plan of this case") is amended:

C) The plaintiff has been authorized, and according to the rehabilitation plan approval plan, the plaintiff shall be entitled to the resolution of the bankruptcy plan as follows:

Den The debt to ○○ was converted into equity investment.

- - Future -

Omission of the Table.

B. On December 12, 2012, the Plaintiff’s shares that ○○ received through debt-equity swap as above.

Article 17-2(1) of the former Value-Added Tax Act (amended by Act No. 11608, Jan. 1, 2013; hereinafter the same) states that "the amount of bad debt tax of 108,742,190 (hereinafter referred to as "the deductible amount of this case") shall be deducted from the amount of output tax of 2012 pursuant to Article 17-2(1) of the former Value-Added Tax Act (amended by Act No. 11608, Jan. 1, 2013; hereinafter the same shall apply). The head of ○○ Tax Office determined that the ○○○’s request for correction was lawful, and notified the Defendant of the taxation data that allows the Defendant to deduct the deductible amount of this case from the amount of output tax of the Plaintiff." The Defendant against the Plaintiff on August 2, 2014.

Accordingly, in 2012, the Plaintiff imposed the value-added tax on ○○ Won by deducting KRW 100,000 equivalent to the amount that ○○○ was deducted from the input tax amount for the second period of value-added tax in 2012 (hereinafter “instant disposition”).

D. The Plaintiff requested for adjudication against the Director of the Tax Tribunal on October 13, 2014, but the said request was filed on October 13, 2015.

4.1. The dismissal was made.

[Ground of Recognition] Unsatisfy, Gap evidence 1 to 5, and Eul evidence 1 to 4, each entry, change

The purpose of the whole theory

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

○○○ is deemed to have recovered the credit account receivable from the Plaintiff’s credit account receivables upon conversion of investment, and thus, it cannot be deemed that a bad debt was incurred in the process. Since shares received after conversion of investment have occurred as a result of the retirement of shares received from conversion of investment, the Defendant’s disposition of this case on the premise that ○○ had legally deducted the amount of credit due to the occurrence of bad debt from the credit account receivables against the Plaintiff.

B. Relevant statutes

It is as shown in the attached Form.

C. Determination

1) Article 17-2 (1) of the former Value-Added Tax Act provides goods or services subject to the imposition of value-added tax, in cases where the whole or part of credit sales or other sales claims (referring to those including value-added tax) related to the supply of such goods or services cannot be recovered due to bad debts due to the bankruptcy or compulsory execution of the person who receives the supply of such goods or services or due to other causes prescribed by Presidential Decree, the bad debts tax amount (=loss x 10/1

Article 63-2 (1) of the former Enforcement Decree of the Value-Added Tax Act (amended by Presidential Decree No. 24359, Feb. 15, 2013; hereinafter the same shall apply) and Article 19-2 (1) 5 of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 24357, Feb. 15, 2013); one of the bonds which cannot be recovered due to the reasons prescribed by Presidential Decree is the debtor rehabilitation and bankruptcy.

Decisions on authorization for rehabilitation plan under the Debtor Rehabilitation Act (hereinafter referred to as the " Debtor Rehabilitation Act") or the court's amnesty;

The "claim which is confirmed to be impossible to be recovered by decision of liability" is defined.

Meanwhile, Article 72(2)4-2 of the former Enforcement Decree of the Corporate Tax Act provides that the book value of stocks, etc. acquired through a debt-equity swap shall be the acquisition value of assets when a corporation, which was decided to authorize the rehabilitation plan including the content of converting its liabilities to investments under the Debtor Rehabilitation Act, files a debt-equity

2) Examining the instant case in full view of the foregoing legal principles and the following circumstances:

Article 19-2(1)5 of the former Enforcement Decree of the Corporate Tax Act provides that credit account receivable owed to the Plaintiff by ○○○.

(2) The decision of the court on authorization of the rehabilitation plan or the decision of the court to grant the

Since it cannot be viewed as a "claim", a substantial amount of the deduction in this case shall be ○○'s bad debt.

In this case, the plaintiff's input tax amount was excluded from the input tax amount.

Dispositions are illegal.

A) Requirements for taxation or tax exemption under the principle of no taxation without law

b) The interpretation of tax laws and regulations must be interpreted in accordance with the law, unless there is a special reason not to do so.

It is not allowed to expand or analogically interpret without reasonable grounds, and the former Corporate Tax Act is not allowed.

Article 19-2 (1) 5 of the Enforcement Decree provides that "a claim confirmed to be impossible to be recovered due to the decision to grant authorization for the rehabilitation plan or the court's decision on immunity under the Debtor Rehabilitation Act" shall be deemed bad debts.

In addition, ○○'s credit account receivables against the Plaintiff are withdrawn according to the rehabilitation plan approval plan.

The sentence is merely a reduction of capital, and the above decision became final and conclusive as impossible to recover.

In the interpretation of the words, it does not constitute a cause of bad debt.

B) In order to fully or partially repay obligations, a debt-equity swap is a type of debt and debt adjustment that the debtor issues equity securities (stocks) to the creditor, and thereby, to adjust the debt through a change in the capital structure converted into equity capital. In such a case where the debt-equity swap was intended to substitute for repayment of the existing bonds through a debt-equity swap, if there is an agreement or agreement on the value of the existing bonds which are extinguished by a debt-equity swap between the creditor and the debtor, and if there is no agreement on the value of the existing bonds which are extinguished by a debt-equity swap, it is reasonable to deem that the existing bonds equivalent to the appraised value of new stocks as of the effective date of the issuance of new stocks have been repaid (see Supreme Court Decision 2008Da183

However, in the case of a rehabilitation plan, the consent of at least 2/3 of rehabilitation creditors, and the group of rehabilitation secured creditors.

The requirement for consent of at least 3/4 (Article 237 of the Debtor Rehabilitation Act) shall be approved by the court and approved by the court.

To the extent that the rehabilitation plan is authorized, interested parties are in accordance with the rehabilitation plan;

An agreement is deemed reached between interested parties on the matters stated in the rehabilitation plan.

(2) In the case of a rehabilitation company, the value of the existing claim to be extinguished by conversion of investment.

Since the significance exists under the rehabilitation plan, the principal obligation is subject to lawsuit as prescribed in the rehabilitation plan.

In addition, Article 72(2) of the former Enforcement Decree of the Corporate Tax Act provides that, in principle, "stocks acquired through a debt-to-equity swap with respect to the acquisition value of assets" shall be based on the market price at the time of acquisition. However, in cases where a corporation whose rehabilitation plan including the content of conversion of debts into investments under the Debtor Rehabilitation Act conducts a debt-to-equity swap, "the book value of the bonds converted into investments" shall be deemed as the acquisition value of stocks. It provides that

Therefore, according to this case’s return, as long as the rehabilitation plan of this case’s rehabilitation is deemed to substitute for the repayment of the rehabilitation claim in question on the date when the newly issued shares take effect, the remaining rehabilitation security rights and rehabilitation claims, which have been exempted or paid in cash, shall be extinguished through a conversion of investment, and the acquisition value of the shares to be acquired, shall be deemed to be the book value of the converted investment. Thus, it cannot be deemed that a claim equivalent to the capital which has been reduced due to a gratuitous retirement of shares after the conversion of investment under the rehabilitation plan, has become final and conclusive as an unrecoverable claim. Thus, the part of the claim shall not be deemed to have become final and conclusive as bad debt.

C) Meanwhile, Article 206(1) of the Debtor Rehabilitation and Bankruptcy Act provides that "the amount of liabilities to be reduced by the issuance of new shares" as one of the matters to be prescribed in the rehabilitation plan through debt-equity swap, which entails the issuance of new shares, is also premised on the fact that when a rehabilitation creditor issues new shares, the amount of rehabilitation claims equivalent to the book value of the shares converted into equity investment, i.e., the total amount of the amount converted into equity investment, if

D) In addition, according to Articles 421 and 423(1) and (2) of the former Commercial Act (amended by Act No. 10600, Apr. 14, 201) (amended by Act No. 10600, Apr. 14, 201), in the case of issuance of new shares, the underwriter of new shares is obligated to pay the full amount of the subscription price for the shares that he/she acquired on the date of payment. If the underwriter of new shares fails to pay or make a contribution in kind on the date of payment, his/her rights are lost, and the effect of issuance of new shares is limited to the shares that have been made on the date of payment out of the scheduled shares to be issued. In light of the legal relationship of issuance of new shares, in the case of issuance of new shares through a debt-equity swap, it is recognized that the entire debt to be converted

The substance of the shares as payment for the shares cannot be denied by removing only the shares separately (Supreme Court)

In light of the above provision, it is reasonable to view that, in cases where the approval decision on the rehabilitation plan accompanying the issuance of new stocks is made, the effect of extinction of obligations takes place not only over the market price but also over the total value of the stock on the account book where the conversion of investment takes place.

3. Conclusion

Thus, the plaintiff's claim of this case is reasonable, and it is so ordered as per Disposition.

shall be ruled.