The meaning of "the initial date of taxation" as stipulated in Paragraph 1 of Article 15 of the Foreign Capital Inducement Act;

Foreign investment companies under Article 2 (4) of the Foreign Capital Inducement Act refer to companies which have completed the registration of the Economic Planning Board by undergoing procedures such as completing their investments with the authorization of the President of the Economic Planning Board, and the taxation under the Corporate Tax Act is obviously a taxable unit of the business year of the relevant corporations (Article 2, 5, and 6 of the Corporate Tax Act). Thus, it is interpreted as the first date of the business year beginning after the date of registration with the Economic Planning Board as foreign investment companies.

Articles 15 and 2 of the Foreign Capital Inducement Act, Articles 2, 5 and 6 of the Corporate Tax Act

Supreme Court Decision 74Nu204 delivered on October 8, 1974 (Article 15 (1) 186 of the Foreign Capital Inducement Act, Patent Gazette 500No8063 Decided October 8, 1974)

Korea ASEANAFFE

Head of Central Tax Office

The disposition of imposition of KRW 2,932,90 against the plaintiff on August 31, 1973 by the defendant shall be revoked.

Litigation costs shall be borne by the defendant.

The same shall apply to the order.

On March 21, 1967, the Plaintiff obtained authorization for foreign investment from the Economic Planning Board as of April 25 of the same year, and completed the registration from the Economic Planning Board as of November 28, 1968 under Article 9 of the Foreign Investment and Foreign Capital Inducement Act. The fact that the Defendant made a disposition of taxation as to the Plaintiff as of August 31, 1973, as stated in the purport of the claim, does not conflict between the parties.

According to Article 15 of the Foreign Capital Inducement Act, the plaintiff asserted that the business year of the plaintiff corporation was exempted from corporate tax for the period from January 1, 1969 to December 31, 1973, which was five years after the date of the business year of 1979, and that the defendant made the original tax disposition. The defendant asserts that the plaintiff corporation has already received benefits from corporate tax exemption for five years after calculating five years from the year 1967 when the plaintiff corporation registered its establishment in accordance with Article 15 (1) 1 of the Foreign Capital Inducement Inducement Act, which was the "the date of the initial taxation period" of Article 15 (1) 1 of the Foreign Capital Inducement Inducement Act for the period from 1967 to the year 1971.

Therefore, I first identify the exemption period of taxation of the plaintiff corporation.

Article 15 (1) 1 of the Foreign Capital Inducement Act provides that "the income tax, corporate tax, or property tax on a foreign-invested enterprise shall be exempted for five years from the date of initial taxation period under the corresponding tax laws," and Article 2 subparagraph 4 provides that "foreign-invested enterprise" means an enterprise registered under this Act and which is invested by a foreign investor, and Articles 6, 8, and 9 (1) of the Foreign Capital Inducement Act provide that if a foreigner intends to acquire or own stocks or shares of an enterprise of the Republic of Korea under the foreign capital Inducement Act, he/she shall obtain authorization from the head of the economic planning office, and if the foreign-invested enterprise completes the investment in accordance with the authorized contents, he/she shall obtain registration from the head of the economic planning office, and it shall be deemed that the foreign-invested enterprise has completed the first procedure such as completing the investment immediately, and it shall be deemed that the first time to be subject to registration from the date of commencement of the above tax year under Article 2 subparagraph 4 of the Foreign Capital Inducement Act, which shall be deemed to have been registered in accordance with Article 18 (16) of the first Act.

However, when the first taxable period under Article 15 of the Foreign Capital Inducement Act is interpreted as the starting date of the first business year after the above registration, if the corporate tax collected before the above exemption period exceeds the total million won and is refunded, it would cause serious confusion in the national finance and tax administration. Thus, even if the plaintiff's claim for this case is justified, it would be reasonable to dismiss it. However, the taxation and collection of taxes are reasonable in accordance with the principle of no taxation without the law, and it seems that the acceptance of the plaintiff's claim is considerably contrary to the public welfare, and it cannot be accepted on the grounds that there are many taxes to be refunded in the future.

If so, the plaintiff's claim for cancellation of this case is reasonable, and therefore, it shall be accepted. It is so decided as per Disposition with the burden of the losing defendant.

Judges Kim Hong-hun (Presiding Judge)