All appeals by the Defendants are dismissed.

1. The summary of the grounds for appeal (based on fact), Defendant B Co., Ltd. (hereinafter “Defendant Company”) was engaged in real transactions with F Co., Ltd. (hereinafter “F”) via “R of a stock company,” and thus, the total tax invoices by seller as indicated in the holding of the lower judgment (hereinafter “total tax invoices by seller of this case”) are not false.

2. Determination

A. The person liable to pay the value-added tax, upon receiving a tax invoice from an entrepreneur who supplies under the Value-Added Tax Act, shall be deemed to be the person who actually received the goods or services or who actually performed the transaction of supplying the goods or services from the supplier, not from the supplier or the person who forms a nominal legal relationship with the supplier.

(See Supreme Court Decision 2008Do1715 Decided July 24, 2008 (see, e.g., Supreme Court Decision 2008Do1715, Jul. 24, 2008). The Punishment of Tax Evaders Act imposes a punishment for issuing or receiving a tax invoice without being supplied with or being supplied with goods or services. This includes not only issuing or receiving a tax invoice without being supplied with or being supplied with goods or services, but also receiving a tax invoice prepared by a person, other than the actual supplier of the goods or services (see, e.g., Supreme Court Decision 2007Do10502, Jan. 28, 2010).

Judgment

According to the evidence duly admitted and examined by the court below, the following circumstances can be acknowledged:

(1) In the course of the tax investigation into the Eastern Tax Office F, a competent tax office, F is issued a tax invoice of KRW 5,54,121,000 in total from the business partner during the period from January 1, 2008 to September 30, 2008.