National High Court Decision 2004Du0044 (Law No. 14, 2004)
The case holding that although the value-added tax, corporate tax, and income tax were determined by deeming the tax invoice received from the data as the processed tax invoice, the assertion that the transportation service was provided and the tax invoice was issued after paying the cost is reliable when based on the transaction statement, the vehicle register, the daily shipment statement, etc. by transaction party.
Article 19 of the Corporate Tax Act (Scope of Losses)
The disposition of imposition of KRW 6,805,00, and KRW 16,417,040, and corporate tax for the business year from January 1, 1999 to December 31, 199 and the disposition of notifying the change of income amount as bonus for the representative shall be taken, and the purchase tax invoice of KRW 32,970,00,00, which is received by the applicant corporation from (juOO)OOO shall be deemed as a legitimate tax invoice, and the tax base and tax amount shall be corrected, respectively, by deeming the supply value of KRW 32,970,00,000, which is received by the applicant corporation as a bonus for the representative, and correcting the amount of income by excluding that amount from the bonus for the representative.
1. Summary of disposition;
During the period of January 1, 1999, the claimant corporation received one tax invoice of KRW 32,970,000 (the main tax invoice) and deducted the input tax amount at the time of the return of the corporate tax, and included the amount in the deductible expenses at the time of the return of the corporate tax. In accordance with the notice of the research findings on the data of the (main) OOOOOOOO, the disposition agency considered the issues tax invoice as the processing tax invoice and denied the value of supply as deductible expenses, and notified the claimant corporation of the change in the amount of income by disposing of it as bonus of KRW 36,267,00,00 for the first period of January 1, 2009, the value-added tax amount is deducted.
The applicant filed a request for a trial on December 24, 2003 through an objection on August 29, 2003.
2. Opinion of the requesting corporation and the disposition agency;
A. The claimant corporation's assertion
The key tax invoice is a tax invoice that is lawfully received by the claimant corporation from (ju)OOOOO to receive services for transporting steel products from (ju)OOOOOO or from (ju)OOOOOOO to receive services by recontracts with (ju)OOOOO or others. Therefore, this issue is inappropriate for the disposition that the disposition agency deemed the key tax invoice as a processing tax invoice and imposed by deeming it as a tax invoice.
(b) Opinions of disposition agencies;
The evidence presented by the claimant corporation by asserting that the issue tax invoice was based on the actual transaction, is shown only that (i)OOOOO has transported the latter to two (ii)OOOOOOOO, it is difficult to verify whether it is directly related to the claimant corporation, (ii) it does not present specific and objective evidentiary documents, such as the contract for transportation services and the payment of the cost for transportation, and (iii)OOOOOOOO is not directly operated, and (iv) it is not only does not have direct vehicles, and the ratio of the issuance of the processed tax invoice during the period of January 1, 199, which is the transaction period, reaches 92.7%, and the claim of the claimant corporation is not reliable, and therefore the initial disposition is justified.
3. Hearing and determination
(a) Points in dispute;
The issue tax invoices issued by the applicant corporation is whether the tax invoices are legitimate by the actual transaction.
(b) Related statutes;
(1) Corporate Tax Act (wholly amended by Act No. 5581, Dec. 28, 1998)
Article 19 (Scope of Deductible Expenses) (1) Deductible expenses shall be the amount of losses incurred by transactions which reduce the net assets of the concerned corporation, excluding refund of capital or financing, disposition of surplus funds and other transactions provided for in this Act.
(2) The losses under the provisions of paragraph (1) shall be losses or expenses generated or spent in connection with the business of a corporation which are generally accepted as normal or directly related to profit, except as otherwise prescribed by this Act and other Acts and subordinate statutes.
Article 66 (Determination and Correction) (2) The chief of the district tax office having jurisdiction over the place of tax payment or the chief of the district tax office having jurisdiction over the place of tax payment shall, where a domestic corporation which has reported pursuant to Article 60 falls under any of the following subparagraphs, correct the tax base and amount of corporate tax on the income of the corporation for each
1. Where there are errors or omissions in the contents of the return; and
(2) Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 15970, Dec. 31, 1998)
【Scope of Losses】 Losses under the provisions of Article 19 (1) of the Act shall be those as provided in the following subparagraphs, except as otherwise provided for in the Act and this Decree:
1. The purchase value of raw materials of commodities or manufactured goods sold (not including purchase overcharge amounts and purchase discount amounts under corporate accounting standards) and incidental expenses (not including December 31, 198);
(3) Value-Added Tax Act;
(2) The following input tax amounts shall not be deducted from the output tax amount:
1. An input tax amount in case where the list of the total tax invoice by customer is not submitted under Article 20 (1) and (2), or the input tax amount on the portion not entered or entered differently from the fact, in case where the whole or part of the registration numbers or supply values by transaction parties in the submitted list of the total tax invoice by customer is not entered or entered differently from the fact, excluding the input tax amount in such case
C. Facts and determination
(1) First, we examine this case’s facts.
(A) Examining the contents of the investigation uniforms of (OOOO) OOOOOO on the issue tax invoice supplier, (i)OOOOO is a business operator (OOOOOOO) who engages in cargo transport business, and the representative during the taxation period in this case appears as OO, and (ii) it was confirmed that it was reported and closed on October 1, 1991, and that the period during which the director of the tax office conducted the investigation of (OOO)OOOOOO as data on the data from the date on which the (OOOO)OOO was closed.
(B) (State) OOOOO's value-added tax report is as follows, and OOOOOOO is a main agent of a cargo transport vehicle. (State)OOOOOO is a main agent of a cargo transport vehicle, so it is reported that only land-to-land charges for the land-to-land vehicle are sold, and the tax invoice is issued, but it is also investigated that the sales tax invoice has been issued for the cargo transport services of the land-to-land owners in addition to the land
( Note)The details of the value-added tax on OOO;
(C) The director of the office of origin of the OO shall be deemed to have no cargo vehicle directly operated by the (ju)OOOOO through an investigation into the ambs, the representative of the (ju)OOOOOO, and shall also be deemed to have issued sales tax invoices under the name of the corporation of (ju)OOOO for the transportation services provided by the sub-registered sub-owners, and shall be based on the ambs' statement that the sub-owners directly received the transportation services charges, and that the payments, taxes, taxes, etc. were recovered from the (ju)OOOOOO, but (ju)OOOOOO issued tax invoices with the sales invoice for the entire transportation charges and public charges, and (ju)OOOOOO issued the tax invoices issued as the sales invoice for the services provided by the customer.
(D) As a result of the above investigation, OOOO shall send to the customer who issued the sales tax invoice, a written notice on the cooperation for the submission of documentary evidence for transaction to the head of the business office having jurisdiction over the customer who determined that there is no submission of the document or that there is no legitimate transaction as a result of the review of the document, and the disposition authority accordingly confirms that the issue tax invoice is treated as a processed tax invoice and disposed of.
(2) As to this, the claimant corporation did not know whether it is a 3-year shipping company that receives only rent from the owner of the goods. However, the claimant corporation knew that it is a 9-year shipping company that it was a 9-year shipping company, and the claimant corporation received services from 121,528 OO on March 199 that it was not possible for 9-year shipping company to use the 9-year shipping company's shipping company's 9-year shipping company's shipping company's 9-year shipping company's sales on the 9-year shipping company's shipping company's 199-year shipping company's sales on the 9-year shipping company's shipping company's 19-year shipping company's (O's shipping company's 9-year shipping company's shipping company's 13,021,054 trading company's O's shipping company's purchase on the 9-year shipping company's O's trading company's O's trading company'.
The payment of the purchase price has been made directly by JOOO on the local level to the shipping company at the discount of the bill received as the sales price from the OOOOOO on the local level. The head of the Tong of the requesting company presents the copy of the promissory note issued by OOOO to the requesting corporation and the statement of the settlement of the transportation cost and the deposit passbook.
Details of sales and purchase related to steel transport of a requesting corporation in January 1 through June 1999
OOOOOOO(O),OO,OO, OOO,OO,OO,OO, orOO.
OOOOOOO(O),OO,OO, OOO,OO,OO,OO, orOOO.
* (State) If the issue tax invoice issued by OO is the processed tax invoice, it is argued that the cost ratio compared to the sales amount of OO on March 199 is 64% and that it is not realistic.
(3) Reviewing evidence presented by the requesting corporation according to its content is as follows.
(A) The agency is deemed to have issued a processed tax invoice as a branch office of the unregistered borrowers who did not have registered their business without any direct vehicle. However, according to the vehicle registration number, OOOOOO(1.5 tons car truck), OOOOOO(5 tons car truck), OOOOOOOO(5 tons truck), OOOOOOOO(5 tons truck), OOOOOOOOO(11 tons truck), and OOOOOO(11.5 tons truck)'s vehicle register, the final owner of the vehicle is listed as OOOOO(11.5 tons truck), and all of this periods of registration was registered as OOOO prior to the date of closure, and it appears that the agency's decision that the vehicle was cancelled on March 21, 200.
(B) According to the trading statement delivered by the applicant corporation to (OOO, the number of vehicles such as OO, OOO, OOO, OOOO, etc. appears to be a vehicle owned by the (OO)OOOOOO on March 1, 199 and March 31, 199; (b) the number of vehicles held by OOOO is specified; (c) the number of vehicles held by OOO is specified; and (d) the number is specified on the trading statement for each cargo destination held by OOOO that the owner ordered the owner to provide the transportation service; and (e) the number of vehicles such as OO, OO, OO, OOO, and OOOO appears to be a vehicle owned by OOO on the day of (OOO shipment on the day of each customer of the owner that is the owner of the transportation service; and (e) the owner of the vehicle held by OOO on the day of the owner's delivery.
(C) According to a promissory note issued by the applicant corporation during March 199, the sales and purchase statement of steel transport by January 1 through 1, 1999, which included the monthly sales and the monthly transportation cost paid by the applicant corporation to 14 shipping businesses, and a promissory note issued by the applicant corporation, the applicant corporation paid the sales and purchase price of 119,713,43 won to OOOO during the period of 1999, and the purchase price of OOO was included in the amount of 131,684,786 won on this issue’s tax invoice from OOOO, and the sales and purchase price of 19,713,43 won was confirmed to have been paid by the applicant corporation to 19,79,000 won on this issue’s tax invoice from 139,684,786 won on this issue’s sales and purchase price of O19,000,0000 won on this issue’s tax invoice.
(4) In full view of the above facts, it is determined that the claimant corporation's assertion that (a) the shipping service equivalent to the value on the key tax invoice is entrusted to (b) the (c)OOOOOOO's steel product shipping service was ordered to be provided by (c)OOOOOOO, (d) the shipping service was provided by the (c)OOOOOO, and the outstanding tax invoice was issued. Since the key tax invoice appears to be a legitimate tax invoice through the real transaction, the disposition of this case that the disposition agency deemed the key tax invoice as the processed tax invoice is deemed to be erroneous.
This request for a trial is reasonable as a result of the review, so it is decided as per Disposition in accordance with Articles 81 and 65 (1) 3 of the Framework Act on National Taxes.