Cho Jae-2017-China 4674 ( December 22, 2017)

Whether the defendant's estimated investigation on the plaintiff's sales is illegal

Since the Plaintiff failed to submit evidentiary documents, such as account books to verify the sales amount corresponding to the omitted purchase, the Defendant’s application of the gross profit ratio of the total wholesale business for the purpose of estimating the Plaintiff’s omitted sales by filing a report is a method of estimation under the relevant Acts and subordinate statutes. Therefore, it is reasonable

Article 143 of the Enforcement Decree of the Income Tax Act

Incheon District Court 2018Guhap50585 Disposition revoking Value-Added Tax Imposition

○ ○

○ Head of tax office

2018.12

2018.26

1. Dismissal of the part concerning imposition of each local income tax stated in the separate disposition sheet among the instant lawsuit

section 3.

2. The plaintiff's remaining claims are dismissed.

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

Cheong-gu Office

Part of each global income tax (including additional tax, hereinafter the same shall apply) entered in the attached Form of Disposition by the Defendant against the Plaintiff

The imposition of excess and each local income tax shall be revoked.

1. Details of the disposition;

As a result of conducting a tax investigation on K Co., Ltd. (hereinafter referred to as "K"), a manufacturer of vehicle parts, etc. conducted a tax investigation on the following: (a) the Plaintiff conducting wholesale business, trade business, etc. such as food, etc. from 2011 to 2014; (b) the Plaintiff deposited the amount of KRW 85,481,81,81, KRW 121, 395, KRW 455, KRW 135,57, KRW 273, February 135, 2011, KRW 85,57, KRW 273, KRW 85,481, KRW 81, KRW 818, KRW 3,756, KRW 64, KRW 3,504, KRW 2013, KRW 5,609, KRW 91, KRW 2013, KRW 3601, KRW 13,609, KRW 14,098, KRW 3981.

The Defendant estimated the omitted sales amount corresponding to the purchase amount by applying the total profit ratio of the comprehensive wholesale business in the product wholesale business to the omitted purchase amount, by deeming that the Plaintiff paid the purchase amount to the purchase amount and did not receive the tax invoice due to the failure to report the purchase amount and the sales amount corresponding thereto as stated in the attached Form of Disposition on Taxation, and imposed the value added tax on the Plaintiff from January 201 to January 2014.

As a result of conducting a tax investigation on SN conducting wholesale and trade business, the director of the Western District Tax Office confirmed that SN deposited total of KRW 665,906,983 in the Plaintiff’s deposit account in the taxable period of value-added tax from January to February 2012, 201, and notified the Defendant.

Taxation Period

Amount of sales omitted in the estimated report (cost)

SN

The amount of sales omitted in reporting

2011

32,108,00

288,268,000

2012

108,115,00

377,638,000

2013

1,106,00

-

2014

5,260,000

-

[Grounds for recognition] The entry of evidence Nos. 1 and 2, and the purport of the whole pleadings

July 30, 2012

After entry of change

Shareholders' Name

Number of shares held

February 11, 2014

After entry of change

Shareholders' Name

Number of shares held

14,483

○ ○

12,412

Both △△△△

7,241

○ ○

9,309

Yang-○

3,620

Red○ ○

5,601

○ ○

2,588

○ ○

2,588

○ ○

1,034

○ ○

1,034

Total

30,000

Total

30,000

2. Whether the part on imposition of each local income tax among the instant lawsuit is legitimate

The Plaintiff seeks revocation of each disposition imposing global income tax on the Defendant from 2011 to 2014

In addition, the revocation of imposition of each local income tax is also sought.

However, according to Article 93(1) and (2) of the former Local Tax Act (amended by Act No. 12153, Jan. 1, 2014) and Articles 95 and 97 of the Local Tax Act, a lawsuit seeking the revocation of imposition of local income tax (individual local income tax) shall be filed against the head of a tax office, not the head of a tax office, against the head of a local government having jurisdiction over the place of tax payment. In a lawsuit filed against the head of a tax office, the person liable for tax payment is sufficient to obtain the revocation of imposition of local income tax and to file a lawsuit seeking the revocation of imposition of local income tax. Thus, the part seeking the revocation of imposition of local income tax for the year 2014 is unlawful.

3. Whether each of the dispositions of this case is legitimate

A. The plaintiff's assertion

1) In the case of a request for a trial filed by K, the Tax Tribunal decided that the amount of the instant purchase deposited by the Plaintiff to K’s name account is not the price paid in purchasing the goods without a tax invoice from K, but it shall be deemed that K deposited the export price to be paid by the Plaintiff on behalf of the U.S. company P, and that K deducted the amount of the instant purchase price from the omitted sales amount of K. Accordingly, unlike the content of the decision, it is unlawful as it violates the binding force of the above decision of correction since each of the dispositions of this case, deeming that the instant purchase price was the price paid by the Plaintiff while purchasing the goods without a tax invoice from K.

Even if the above decision of the Tax Tribunal is not a decision of re-examination but a decision of re-examination, as long as K paid export price to be paid by the Plaintiff on behalf of the Plaintiff in the decision, each of the dispositions of this case, which was otherwise considered unlawful, is contrary to the binding force of the decision of re-examination.

2) The amount of the instant purchase is merely the Plaintiff’s deposit of the export price to be paid by K in lieu of P into the borrowed name account, and the Plaintiff did not deposit the price into the borrowed name account of K when purchasing goods without receiving a tax invoice from K. Thus, each disposition of the instant case by deeming that the Plaintiff purchased goods without receiving a tax invoice from K and omitted filing a return of the purchase price is unlawful.

3) Even if the Plaintiff purchased goods from K and paid the instant input price, but failed to report the purchase price, the Defendant, while making a decision on the omitted sales amount corresponding to the Plaintiff’s omitted purchase price, did not conduct an on-site investigation immediately without any on-site investigation, and conducted an estimate investigation, among overseas goods subject to zero-rate tax, even in conducting an estimate investigation.

The same kind of business without taking into account extremely low domestic sales transactions, mainly engaged in a business and without taking into account the circumstances of low domestic sales transactions.

The plaintiff estimated the sales omitted by applying the total profit ratio of sale and purchase of the class.

The estimated survey does not meet the requirements, and the contents and methods of the survey are the actual sales of the plaintiff.

Since the amount is not reflected in a reasonable and reasonable manner, each disposition of this case is unlawful.

(b) Related statutes;

It is as shown in the attached Table related statutes.

(c) Fact of recognition;

1) The Defendant conducted a tax investigation on K and conducted a tax investigation on K from January 201 to January 1, 2014

Goods from the Plaintiff, etc. in the taxable period of value-added tax to the borrowed name account in the name of Y and H

Considering that sales amount of KRW 3,113,658,048 was omitted by receiving payment, etc., on December 3, 2014, K issued a disposition of KRW 561,921,370 in total and the disposition of KRW 410,795,770 in total and KRW 410,79,770 in the business year from 2011 to 2013, and notified the representative director of the change in the amount of income in the business year from 2011 to 2013.

2) On May 22, 2017, K filed an appeal with the Tax Tribunal, and the Tax Tribunal rendered a decision on the following summary (hereinafter referred to as “instant decision”). The Defendant requested the Director of the Tax Tribunal to clarify whether the instant decision is acceptable or not, or whether it is a reinvestigation decision. On August 9, 2017, the Director of the Tax Tribunal sent a reply to the effect that re-audit pursuant to Article 65(1)3 of the Framework Act on National Taxes is conducted on the grounds that the instant decision was a reinvestigation decision to the Defendant.

[Disposition]

The Defendant imposed value added tax on K on December 3, 2014, KRW 561,921,370 in total from January 201 to January 1, 2014; imposition of KRW 410,795,770 in total from 2011 to the business year 2013; and imposition of KRW 2,976,964,852 in total from 2011 to the business year 2013 in notice of the change in income amount during the period from 2011 to the business year 2013; the Defendant corrected the tax base, amount of tax, and amount of income calculated by deducting the amount confirmed as the deposit amount, such as the export face and the amount of tax invoice, the amount of duplicate entry, the amount of cancellation of sales; and the remainder of claims are dismissed.

【Reasoning】

K does not confirm the fact that K used a borrowed-name account until the bank account is suspended due to a default on payment, and it appears that K opened and used a borrowed-name account. The defendant did not recognize K's export face value and the amount of the tax invoice issued, which differs from the amount of the deposit account, as the amount of the previously declared sales. However, K's face value, there is no reason to issue the tax invoice increase, and there is no reason to issue the tax invoice increase, and the issue amount is not settled at once in a continuous transaction with the other party, and the amount verified as a overlapping payment with the amount of the K representative's deposit account (the amount of the representative director and a related party's deposit, etc.) deposited in the K for the operation of the corporation is deemed to have been used for the business of the K. In light of the fact that the amount of the deposit is deemed to have been used for the business of the K, it is reasonable to deduct the amount verified by the objective evidence other than the amount of the deposit amount of the deposit account, the duplicate payment cancellation, the representative director, and family members, etc.

3) The Defendant conducted a reinvestigation of the omitted sales amount of K’s KRW 3,113,658,048, the Defendant corrected K’s value-added tax, corporate tax, etc. by subtracting KRW 309,120,983, including the amount of KRW 162,040,80 in the initial amount found to be omitted sales, and the amount of KRW 111,742,742,175 in the cancellation of sales, and the amount of the court deposit refund, and KRW 35,320,00 in the amount of KRW 35,320,983 in the amount of the Plaintiff’s input

[Reasons for Recognition] Entry of Evidence Nos. 3 through 5, the purport of the whole pleadings

D. Determination

1) Whether each of the instant dispositions conflicts with the binding force of the instant decision

The decision of this case by the Tax Tribunal shall be the export face value of K and the amount of tax invoice issued, duplicate entry

Since it is deemed reasonable to deduct the amount verified as the amount of deposit, the amount of cancellation of sales, the amount of representative director and family members, etc. from the amount omitted sales, K shall be deducted from the amount omitted sales.

The fact that the Plaintiff’s entry of this case was partially paid by K on behalf of the Plaintiff, and deposited into the name account of K, and thus, did not constitute the amount of purchase omitted in the return, on the ground that value-added tax, corporate tax base, tax amount, and notice of change in income amount are corrected, and that the remainder of the claim is dismissed.

Since the decision of this case is not related to the export transaction of K in accordance with the decision of this case

Even if the issue amount of export face value, etc. should be deducted from K’s omission in sales, the determination of this case contains the purport that the Plaintiff’s entry amount in this case should be recognized as having received part of the export price paid by K on behalf of the Plaintiff, and it cannot be deemed that the decision of this case goes against the binding force of the decision of this case, regardless of whether the decision of this case was the decision of re-examination or not.

2) Whether the amount of the instant admission constitutes the Plaintiff’s omission of report or purchase

The Plaintiff: (a) part of the export price to be paid by K from P

Although it is alleged that the Plaintiff was paid in lieu of high-priced and deposited into the name account of K. However, there is no objective evidence to acknowledge that the Plaintiff was paid in the amount of the instant purchase from P. In the adjudication process of the Tax Tribunal, K is KRW 2,514,082,294 in export declaration price with respect to export transaction with P in the taxable period of value-added tax in January 201 to January 2014, and KRW 2,265,823,569 in foreign currency paid in direct from P., and its difference is KRW 248,258,725 in excess of the Plaintiff’s payment in lieu of P. On the other hand, the Plaintiff asserted that the Plaintiff was paid in lieu of the Plaintiff’s export price in lieu of the Plaintiff’s payment in lieu of the said difference, and that the Plaintiff’s purchase price of the instant goods was not consistent with the Plaintiff’s claim that the Plaintiff’s purchase price of the instant goods was suspended from 20 years to 200.

3) Whether the estimated survey was conducted unlawfully

Article 80 (3) of the Income Tax Act and Article 143 (1) of the Enforcement Decree of the Income Tax Act

Where a tax base is corrected, it shall be based on books or other evidentiary documents, and the tax base shall be based on the tax base.

(1) If there is no necessary account books or evidentiary documents or material parts are incomplete or false;

the estimated income amount under each of the above provisions is reasonable.

The revenue amount is not sufficient to be estimated only if it satisfies the requirements to estimate the revenue amount.

the estimated amount of income close to the truth in a specific case;

reasonable and reasonable to reflect the amount of such estimates, and such estimates shall be

In the event of dispute as to whether the legitimacy is legitimate, the tax authority shall bear the burden of proving the reasonableness and validity.

However, if the tax authority estimates in accordance with the method and procedure prescribed by the relevant regulations, it shall be deemed that

The rationality and validity of this case shall be proved once, and the detailed contents of this case shall be clearly unafford

In regard to the fact that it is inappropriate to reflect the actual value of the revenue, the dispute is raised.

A taxpayer needs to prove (see, e.g., Supreme Court Decisions 96Nu12054, Sept. 9, 1997; 2008Du7687, Oct. 14, 2010).

purchase of goods by the Plaintiff without receiving evidentiary documents, such as tax invoices, from K

(2) The amount of the entry of this case shall be deposited into the name account of K and the amount of the entry of this case

(1) If the purchase has been reported or omitted, the sales amount corresponding to the omitted purchase may be verified.

Since documents, such as books, were not submitted at all, the defendant was also on-site investigation.

The plaintiff's sales can not be confirmed, and the type of business of the plaintiff seems to be food, etc.

Since wholesale and trade business, etc., the Defendant’s comprehensive goods to estimate the Plaintiff’s omitted sales

The application of the total profit ratio of wholesale business is the estimation method under the relevant Acts and subordinate statutes (the plaintiff is added to the plaintiff).

consideration of the Plaintiff’s special circumstances, which operate an overseas commodity brokerage business subject to the value-added tax rate;

omission in filing a report by the Plaintiff by applying the gross profit ratio on the premise of domestic sales transactions without regard to such transactions

If the withdrawal amount has been estimated, it shall not be reasonable and reasonable in the method and content of the estimation.

claim, however, the method of estimating the overseas commodity brokerage business is specifically stipulated in the relevant laws and regulations.

The gross profit ratio does not distinguish whether it is a domestic transaction or a foreign transaction, and wholesale and retail business is not a wholesale and retail business.

Since it appears as a means of estimation that can be applied to a business proprietor, the defendant's total profit ratio

by applying B, it is difficult to deem that the Plaintiff’s sales omitted in reporting were found to have been estimated.

In full view of the above, the defendant's estimated investigation on the plaintiff's sales cannot be deemed illegal (On the other hand, the defendant)

the disposition of imposition of global income tax for 2012 among the respective dispositions of this case, the Plaintiff’s failure to file a return

SN does not set sales as a method of estimated investigation, but as a savings account of the plaintiff

Each disposition of this case, since the amount deposited in the Plaintiff was recognized as omission in the Plaintiff’s report sales

In the imposition of global income tax for the year 2012, the issue of whether the disposition of global income tax for the plaintiff is illegal or not.

shall not be prohibited.

4. Conclusion

Of the instant lawsuit, the part on imposition of each local income tax indicated in the separate disposition sheet is unlawful.

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

Date of Disposition of Imposition

Year

Time of reversion of value-added tax

Omission of Report

Amount of purchase (cost)

Sales

Total profit ratio (%)

Omission of Estimated Reporting

Sales (cost)

Global income tax (source)

Local income tax (won)

May 11, 2017

2011

1, 2011

121,395,455

22.63

1 56,902,488

19,134,030

1,913,400

2011

135,557,273

22.63

1 75,206,505

August 1, 2017

2012

1, 2012

85,481,818

17.46

1 03,564,111

19,811,760

1,981,170

2012

3,756,664

17.46

4,511,325

2013

1, 2013

3,504,091

17.95

4,270,677

595,970

5 9,590

2, 2013

5,609,091

17.95

6,836,186

2014

1, 2014

3,614,091

31.3

5,260,685

362,050

36,200

(c)

Related Acts and subordinate statutes

former Local Tax Act (Amended by Act No. 12153, Jan. 1, 2014)

Article 93 (Return, Payment and Notice of Income Tax Amount)

(1) A person liable to pay pro rata income tax shall file a return, preliminary return, or preliminary return under the Framework Act on National Taxes

When filing a revised return, the pro rata income tax portion shall be determined by Ordinance of the Ministry of Strategy and Finance to the

It shall be reported together and paid to the head of the local government having jurisdiction over the place of payment of income tax.

(2) Income as imposed and collected by the head of a tax office according to the Framework Act on National Taxes or the Income Tax Act.

Tax (Articles 81 and 115 of the Income Tax Act and Articles 47, 47-2 through 47-4, 48 and 48 of the Framework Act on National Taxes)

Where an additional tax under Article 49 is collected, the pro rata income tax portion shall be an income, notwithstanding Article 90.

The imposition and collection of taxes shall be imposed and collected along with income tax in the form prescribed by Ordinance of the Ministry of Security and Public Administration.

(5) Where the head of a tax office receives a return on income tax or imposes a notice on imposition pursuant to paragraphs (1) and (2),

The head of the local government shall be deemed to have received a report or imposed a notice.

Local Tax Act

Article 95 (Final Return and Payment of Tax Base and Tax Amount)

(1) Where a resident files a final return on the tax base of global income or retirement income pursuant to the Income Tax Act.

The tax base and tax amount of individual local income tax on global income or retirement income by the relevant deadline for return.

A final tax return and payment shall be made to the head of the local government having jurisdiction over the place of tax payment, as

(c)

Article 97 (Determination and Correction)

(1) The head of a local government having jurisdiction over the place of tax payment shall not report or report under Article 95 by a resident.

Where there is any error or omission in details, the tax base and amount of the relevant taxable period shall be determined or corrected.

section 3.

Addenda (Law No. 12153, Jan. 1, 2014)

Article 13 (Special Cases concerning Reporting, etc. of Individual Local Income Tax)

(1) Land and other land transactions under the amended provisions of Article 93 (5) not later than December 31, 2019, from the enforcement date of this Act.

The following preliminary return, the final return of tax base under the amended provisions of Article 95, and the spirit under the amended provisions of Article 96;

Filing an application (including cases applied mutatis mutandis under the amended provisions of Article 103-9), reporting on a place of joint business pursuant to the amended provisions of Article 102 (2), preliminary return of tax base pursuant to the amended provisions of Article 103-5, and preliminary return of tax base pursuant to Article 103-7

The final tax base return pursuant to the amended provisions and the securities transfer office pursuant to the amended provisions of Article 103-12(4)

Any person who intends to report the acquisition shall file a report under Articles 93 (5), 95, 96, 102 (2), 103-5 and 103-5.

Notwithstanding the amended provisions of Articles 103-7 and 103-12 (4), the head of a tax office or a local government having jurisdiction over the place of tax payment.

The head of the local government having jurisdiction over the place of tax payment shall report and pay it.

(2) A decision and correction under the amended provisions of Article 97 (Article 103) by December 31, 2019 from the enforcement date of this Act (Article 103)

-9 Occasional assessment under the amended provisions of Article 98 and the amended provisions of Article 98

Affairs concerning schedule (including cases applied mutatis mutandis under the amended provisions of Article 103-9) shall be those as referred to in Articles 97 and 98.

Notwithstanding the amended provisions of Article, the head of the competent tax office or the director of the regional tax office shall conduct it.

(4) Paragraphs (1) and (2) shall apply to the portion for which the first tax liability arises after this Act enters into force.

former Framework Act on National Taxes (Amended by Act No. 14382, Dec. 20, 2016)

Article 56 (Relation with Other Acts)

(2) The main sentence of Article 18 (1), (2) and (2) of the Administrative Litigation Act shall apply to any administrative litigation against any illegal disposition prescribed in Article 55

Notwithstanding paragraph (3), a request for examination or adjudgment under this Act and a decision thereon shall not be made.

(2) No action may be brought by the court.

Basic Act

Article 61 (Period of Request)

(1) Any request for evaluation shall be filed within 90 days from the date (when a disposition notice is received, the date of its receipt) on which an applicant becomes aware

shall be filed within such period.

Article 65 (Decisions)

(1) Decisions on a request for examination shall be made pursuant to the following subparagraphs:

1. Where a request for examination falls under any of the following items, a decision to dismiss such request shall be made:

(a) Where a request for examination is filed after filing a request for adjudication (including where such request is filed on the same day);

(b) Where the request is made after the lapse of the request period provided in Article 61;

(c) Where necessary supplement and correction are not made after making a request for examination within the supplement and correction period under Article 63 (1);

(d) Where the request for examination is unlawful;

(e) Cases similar to those under items (a) through (d), as prescribed by Presidential Decree;

2. When the request for examination is deemed groundless, a decision to dismiss such request shall be made;

3. When the request for examination is deemed reasonable, a decision to revoke or correct the disposition against which the request is made shall be issued.

(b) The necessary disposition shall be determined: Provided, That the facts to revoke, correct, or take necessary measures;

Where additional investigation is necessary, such as confirmation, etc., the disposition agency shall re-examine it and the result thereof.

Accordingly, a re-audit decision may be made to cancel or correct or take necessary measures.

(5) Where the re-audit prescribed in the proviso to paragraph (1) 3 is determined, the agency responsible for disposition shall grant 60 days from the date of determination

In accordance with the results, the investigation shall be conducted only within the scope stated in the text of the written decision, and cancellation, correction, or necessity

Any disposition shall be taken. In such cases, the disposition agency shall postpone or postpone the investigation pursuant to Articles 81-7 and 81-8.

The investigation period may be extended or suspended.

Article 68 (Period of Request)

(1) Any request for adjudgment shall be filed within 90 days after the relevant disposition is known (when a notice of disposition is received, the date of its receipt).

shall be filed within such period.

Article 80 (Effect of Decision)

(1) The decision under Article 65 as applied mutatis mutandis in Article 81 shall bind the administrative agencies concerned.

(2) Where a decision is made with respect to a request for adjudgment, the relevant administrative agency shall immediately issue a necessary disposition according to the purport of

of this section.

Article 81-4 (Prohibition of Abuse of Right of Tax Investigation)

(2) Tax officials shall specify the same item of taxation and impose the same tax, except in any of the following cases:

No re-investigation may be conducted for the period.

4. The proviso to Article 65 (1) 3 (including cases applied mutatis mutandis in Articles 66 (6) and 81) or Article 65 (1) 3.

Where an investigation is conducted in accordance with a decision on re-investigation pursuant to the proviso to Article 81-15 (4) 2 (the text of a written decision)

Only the investigation of the mentioned scope

Income Tax Act

Article 80 (Settlement and Correction)

(3) The head of a regional tax office or the director of a regional tax office having jurisdiction over the place of tax payment shall

When determining or correcting a quasi-amount or tax amount, it shall be based on books and other evidentiary documents.

only by account books or other documentary evidence for the reasons prescribed by Presidential Decree;

In any case, the amount of income may be determined by estimation investigation, as prescribed by Presidential Decree.

Enforcement Decree of the Income Tax

§ 143. Determination and revision by estimation

(1) "Grounds prescribed by Presidential Decree" in the proviso to Article 80 (3) of the Act means any of the following grounds:

case means the case in which such

1. Where necessary account books and documentary evidence are nonexistent or important parts are incomplete or missing in the calculation of the tax base;

In the case of consolation

2. False entry in light of the scale of facilities, number of employees, raw materials, commodities or various charges, etc.;

(2) if it is obvious that

3. Where the contents of the bookkeeping are obviously false in light of the quantity of raw materials, quantity of electricity used and other operational conditions.

Article 144 (Calculation of Amount of Income at Time of Estimation, Determination and Revision)

(1) Where it is impossible to calculate the amount of income of the business operator by books or other documentary evidence, such amount of income shall be three

amount calculated by the method of any of the following subparagraphs.

1. The revenue of other businessmen engaged in the same business who are deemed to keep a correct account book and are determined to investigate the account book;

Method of calculation by taking account of the amount

2. Personal and material facilities related to business (employee, guest rooms and businesses) by the Commissioner of the National Tax Service in consideration of the type of business, region, etc.

If there is a business efficiency that determines the relationship between the quantity and value of vehicles, vehicles, water supply and electricity, etc., it shall be done.

Method of calculation by applying the same;

3. Price per production calculated by applying the production receipt rate examined by the Commissioner of the National Tax Service to the input raw materials by industry;

Method of calculating by applying the market price of the quantity sold during the taxation period;

4. Calculation according to the standards falling under any of the following items determined by the Commissioner of the National Tax Service by type and area of business:

method:

(a) Won who determines the relationship between the quantity of all or part of the raw materials and supplementary materials input for production and the quantity of production;

Unit inputs

(b) Personnel expenses, rent, material expenses, expenses for water supply, thermal heat, and other operating expenses, all or some of the expenses and sales;

(1) The cost-related ratio setting the relationship

(c) A commodities turnover rate which determines the relationship between the average stored amount during a fixed period and the sales amount or the sales price;

(d) A sales profit rate which determines the ratio of the sales to the gross sales profit during a fixed period;

(e) The value-added rate determined by the sales amount and value-added amount during a fixed period.

5. Where the ratio referred to in subparagraphs 2 through 4 may be computed on a businessman subject to the estimation, determination and revision, the method of calculation by applying it thereto;

6. With respect to mainly business types traded mainly for final consumers, the standards for inspection for participation prescribed by the Commissioner of the National Tax Service.

Method of Calculation