The time when the transferor shall submit documentary evidence of transfer or acquisition to the tax authority in order to obtain the transfer income tax based on the actual transaction price.

In light of the purpose of the provisions of Articles 23(4) and 45(1)1 of the Income Tax Act, and Article 170(4)3 of the Enforcement Decree of the same Act, the transferor may obtain the transfer income tax based on the actual transaction price by submitting evidentiary documents concerning the transfer or acquisition to the tax authority at the latest until the final return on the tax base is filed. Thus, even if the transfer income tax and the defense detailed statement and disposition were not made at the time of the final return on the transfer of land at the latest, as long as the final return on the actual transaction price for the acquisition and transfer of land was made by submitting evidentiary documents to confirm the actual transaction price for the transfer or transfer within the legitimate

Articles 23(4) and 45(1)1 of the Income Tax Act, Article 170(4)3 of the Enforcement Decree of the Income Tax Act

Supreme Court Decision 86Nu752 Decided February 24, 1987

Plaintiff

Head of Dong Tax Office

Seoul High Court Decision 86Gu1301 Decided June 4, 1987

All appeals are dismissed.

The costs of appeal are assessed against the plaintiff, defendant, and each defendant.

The grounds of appeal by the defendant litigant are examined.

Articles 23(4) and 45(1)1 of the Income Tax Act provide that the transfer value and acquisition value, which form the basis for the calculation of gains on transfer, shall, in principle, be based on the standard market price at the time of transfer and acquisition of transferred assets: Provided, That in cases prescribed by Presidential Decree, it shall be based on the actual transaction value of the assets, and Article 170(4) of the Enforcement Decree of the same Act, which was enacted upon delegation, provides that "where the transferr can confirm the actual transaction value at the time of the transfer and acquisition by the documentary evidence submitted by the transferor at the time of the return on the transfer or the final return on the tax base," as one of the cases where the transfer and acquisition value can be acknowledged based on the actual transaction value. In determining the purport of the above provision, the transferor shall be deemed to be able to obtain the transfer income tax based on the actual transaction value by submitting documentary evidence of transfer or acquisition to the tax authority until the final return on

According to the reasoning of the judgment below, the court below found that the plaintiff did not make a preliminary return on the transfer margin while transferring the land of this case based on the evidence adopted by the court below. The defendant calculated the transfer margin on the land of this case based on the acquisition value and transfer value based on the standard market price, and determined the transfer income tax amount and defense tax amount, and accordingly, the plaintiff made a final return on the transfer income of this case with evidential documents, such as the statement of asset transfer income calculation before the final return period of the transfer income tax of this case under Article 100 (1) of the Income Tax Act was expired, and the plaintiff made a final return on the transfer income of this case based on such evidentiary documents to confirm the actual transaction value at the time of the acquisition and transfer of the land of this case. Even if the plaintiff did not make the final return on the transfer margin at the time of the tax disposition of this case, the actual transfer margin of the land of this case should be again calculated based on the acquisition and transfer value, and therefore, the part of the tax disposition of this case exceeds the actual transaction price at the time of this case.

Although the Plaintiff filed an appeal, it did not state the grounds of appeal in the petition of appeal filed by the Plaintiff, nor did it submit the appellate brief within the statutory period.

Therefore, all appeals are dismissed, and the costs of appeal are assessed against each losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Park Jong-soo (Presiding Justice)