A defendant shall be punished by imprisonment for two years and by a fine of 850,000,000 won.

1. When the defendant does not pay the above fine.

Punishment of the crime

The defendant is a representative director of E Co., Ltd. established for the purpose of manufacturing remote areas.

1. On November 26, 2010, the Defendant, who was not issued a tax invoice, sold out remote areas equivalent to KRW 40,727,164 to customers whose trade name cannot be known at the Dongjak-gu Seoul Metropolitan Government F Building Office, and even from around that time to December 30, 201, the Defendant sold remote areas equivalent to KRW 1,111,164,835 in total over 109 times, as shown in attached Table 1 of the daily list of crimes committed during the period from that time to December 30, 201, did not issue a tax invoice under the Value-Added Tax Act.

2. Where cash sales take place, the Defendant had a mind to evade taxes by means of not reporting cash sales while separately managing cash sales books;

A. On January 2010, the Defendant evaded the value-added tax of KRW 1,47,169,49,494 due to the lapse of the payment period of the value-added tax, when filing a return on the second-term value-added tax at the Kimpo Tax Office in 2009 at the Kimpo-si.

In April 2010, the Defendant evaded corporate tax payment amounting to KRW 669,376,90,000, when filing a corporate tax return in 2009 at the Kimpo-si in 2009.

Accordingly, the Defendant evaded taxes of KRW 816,546,401 in total.

B. Violation of the Punishment of Tax Evaders Act 1) In January 201, the Defendant evaded the value-added tax of KRW 264,444,586 upon the lapse of the payment deadline of the value-added tax by reporting the value-added tax of KRW 264,45,860, cash sales in remote areas, when the Defendant reported the value-added tax of KRW 264,44,586 at the Kimpo-si in 201.

The Defendant, on April 201, filed a corporate tax return for the year 2010 at the Kimpo-si in the 2011 Kimpo-si, filed a report on the cash sales amount and subsequently avoided corporate tax payment amounting to KRW 114,284,416.

2) The Defendant is at the Kimpo-si office around July 201.