A. The meaning of real estate business under Article 11(1) of the former Enforcement Decree of the Business Tax Act (Presidential Decree No. 7827, Sep. 24, 1975)

B. Whether the sale of several real estate during the same taxable period constitutes a real estate business under Article 11 (1) of the former Enforcement Decree of the Business Tax Act (Presidential Decree No. 7827 of Sep. 24, 1975)

A. The phrase “real estate business” under Article 11(1) of the former Enforcement Decree of the Business Tax Act (Presidential Decree No. 7827, Sep. 24, 1975) refers to a real estate business: (a) one or more times of acquisition of land or buildings for profit during the same taxation period; and (b) more than two times of sale; and (c) the acquisition and sale are not conducted during the same taxation period; and (d) it does not constitute a real estate business as referred to in

B. Whether there was two or more sales activities during the same taxation period under Article 11(1) of the former Enforcement Decree of the Business Tax Act (Presidential Decree No. 7827, Sep. 24, 1975) shall be determined by the recovery of the sales activities. The number of real estate sold by one sales act (in this case, the expropriation disposition) shall not be deemed two or more sales activities, and thus, it does not constitute a real estate business under the same Ordinance.

(b)Article 11(1) of the former Enforcement Decree of the Business Tax Act (Presidential Decree No. 7827, Sep. 24, 1975)

Supreme Court Decision 81Nu46 Decided November 24, 1981

Plaintiff

The director of Gwangju Tax Office

Gwangju High Court Decision 80 Gu18 delivered on November 17, 1981

The judgment of the court below is reversed, and the case is remanded to Gwangju High Court.

The plaintiff's grounds of appeal are examined.

According to Article 11(1) of the former Enforcement Decree of the Business Tax Act (Presidential Decree No. 7827, Sep. 24, 1975) which entered into force during the taxable period of this case, the Plaintiff’s acquisition of land or buildings at least once during the 1-year taxation period, and the sale of real estate at least twice shall be deemed as falling under the real estate business subject to taxation, and according to Article 4(1)3 of the former Business Tax Act, the period of taxation on the 1-year sales of real estate shall be two years for individuals, and the 2-month period from July 1 to December 17 shall be deemed as having been entered in the 1-year sales of real estate. Since the provisions on taxation requirements shall be strictly construed in accordance with the principle of no taxation without law, it shall be deemed that the land or buildings for profit-making purposes shall be acquired at least once during the 2-year taxation period, and the provisions on the 1-year sales of real estate shall not be deemed as having been established at least once 17-year sales of the same real estate.

Therefore, the judgment of the court below is reversed, and the case is remanded to the court below for further proceedings consistent with this Opinion by the assent of all Justices who reviewed the appeal. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Yoon Il-young (Presiding Justice)