Cho High Court Decision 2010Du3455 (No. 12, 2011)

The term "ownership of stocks" in Article 10 (2) (a) of the Korea-Japan Tax Treaty does not mean only the case of direct ownership.

(1) The purpose of Article 24(4) of the Korea-Japan Tax Treaty is to clarify the fact that a foreign-invested enterprise is a foreign-invested enterprise even if the foreign-invested enterprise indirectly owns or controls the capital. Therefore, based on the above provision, it cannot be readily concluded that the holding of the "stocks" under Article 10(2)(a) of the Korea-Japan Tax Treaty, which is the provision that applies the limited tax rate on dividend income, is "direct ownership" of the stocks.

2011Nu4349 Revocation of the imposition of corporate tax

XX LLC et al.

Sejong Tax Office et al. and three others

Seoul Administrative Court Decision 201Guhap16797 decided November 10, 2011

September 11, 2012

October 12, 2012

1. All appeals by the Defendants against the Plaintiffs are dismissed.

2. The costs of appeal are assessed against the Defendants.

1. Purport of claim

▪ 피고 종로세무서장이 2010. 7. 12. 원고 XX 유한회사에 대하여 한 2008사업연도 원천징수 법인세 000원의 징수처분을 취소한다.

▪ 피고 이천세무서장이 2010. 7. 14. 원고 OO발전 유한회사에 대하여 한 2006사업연도 원천징수 법인세 000원 및 2009사업연도 원천징수 법인세 000원의 각 징수처분을 취소한다.

▪ 피고 평택세무서장이 2010. 7. 14. 원고 YY 유한회사에 대하여 한 2007사업연도 원천징수 법인세 000원, 2008사업연도 원천징수 법인세 000원 및 2009사업연도 원천징수 법인세 22,727,260원의 각 징수처분을 취소한다.

▪ 피고 여수세무서장이 2010. 7. 14. 원고 AA발전 유한회사에 대하여 한 2006사업연도 원천징수 법인세 000원, 2008사업연도 원천징수 법인세 000원 및 2009사업연도 원천징수 법인세 000원의 각 징수처분을 취소 한다.

2. Purport of appeal

The judgment of the first instance is revoked. All of the plaintiffs' claims are dismissed.

1. A cited part;

The reasoning for the court's explanation concerning this case is as stated in the judgment of the court of first instance, except as stated in the following 2.2. Thus, this Court shall accept it as it is in accordance with Article 8 (2) of the Administrative Litigation Act and the main sentence of Article 420 of the Civil Procedure Act.

2. Parts in height:

▪ 제1심 판결문 제5면 제9행의 2010. 7. 19. 을 2010. 7. 14. 로 고친다 .

▪ 제1심 판결문 제7면 제4행의 2010. 7. 19. 을 2010. 7. 14. 로 고친다 .

▪ 제1심 판결문 제10면의 표를 아래 표와 같이 고친다.

(The following table omitted):

3. Conclusion

Therefore, the plaintiffs' claims seeking the cancellation of the disposition of this case are justified, and the judgment of the court of first instance is justified, and all appeals against the defendants are dismissed. It is so decided as per Disposition by the assent of all.