In case where the actual transaction price of one transaction other than the transaction is confirmed after the final return of tax base of transfer income tax under the former Income Tax Act (amended by Presidential Decree No. 12767 of Aug. 1, 1989), the method of determining transfer margin

The acquisition value and transfer value determined by Article 170(1) and (4) of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 12767, Aug. 1, 1989) shall, in principle, be based on the standard market price, but where the actual transaction value at the time of transfer or acquisition is confirmed in transactions with the State, local governments or other corporations, it shall be determined on the basis of the actual transaction value, even if the confirmation is made by the method of report, inspection, etc. or between the actual transaction values, other than transactions with the corporation, and even if it is confirmed after the final return date of tax base of capital gains tax, the transfer margin shall be determined on the basis of the actual transaction value with the corporation,

Articles 23 and 45 of the Income Tax Act, Article 170 of the former Enforcement Decree of the Income Tax Act (amended by the Presidential Decree No. 12767 of Aug. 1, 1989)

Supreme Court Decision 86Nu752 delivered on February 24, 1987 (Gong1987, 579) 87Nu767 delivered on April 11, 1989 (Gong1989, 760) 90Nu2635 delivered on June 12, 1990 (Gong190, 1492) 90Nu2642 delivered on June 12, 1990

[Defendant-Appellee] Kim Jong-chul, Counsel for defendant-appellee

The director of the tax office.

Seoul High Court Decision 89Gu1161 delivered on May 11, 1990

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

We examine the grounds of appeal.

Article 170(1) and (4) of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 12767, Aug. 1, 1989); however, in case where the actual transaction price at the time of transfer or acquisition is confirmed in transactions with the State, a local government, or other corporations, the actual transaction price at the time of such transfer or acquisition shall be determined based on the standard market price. However, in case where the confirmation is made by means of a report or an inspection other than a transaction with a corporation, or where the actual transaction price is confirmed after the final return date of the tax base of transfer income tax, the transfer margin shall be determined based on the actual transaction price and the other transaction price shall be determined based on the standard market price (see, e.g., Supreme Court Decisions 86Nu752, Feb. 24, 1987; 87Nu767, Apr. 11, 198; 9Nu2642, Jun. 12, 1990).

The court below's above opinion is just as it is judged in accordance with the grounds for reversal of the judgment remanded in this case, and there is no error of law by misunderstanding the legal principles as pointed out.

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

Justices Ansan-man (Presiding Justice)