1. Acquisition tax imposed on the Plaintiff on May 10, 2016, KRW 7,553,020, local education tax 1,132,950, and special rural development tax.

Details of the disposition

The plaintiff is a company established for the purpose of broadcasting program, video production, siren and sales of broadcasting equipment.

On March 11, 2013, the Plaintiff acquired real estate for knowledge industry centers provided for in Article 58-2 of the former Restriction of Special Local Taxation Act (Amended by Act No. 12175, Jan. 1, 2014); the Seoul Yeongdeungpo-gu, Yeongdeungpo-gu, Seoul (hereinafter “instant real estate”).

On March 6, 2013, the Plaintiff filed an application for reduction or exemption of acquisition tax under Article 58-2(2)1 of the Act and received reduction or exemption of 75% from acquisition tax, and filed a return on and payment of acquisition tax, KRW 9,88,740, local education tax, KRW 1,483,310, and KRW 247,210,00.

Around April 2016, the Defendant confirmed that the sales revenue of KRW 398,526,708 on the income statement for the year 2015 constituted KRW 101,490,238 and sales revenue of KRW 297,036,470 on the production of visual equipment and video production.

On May 10, 2016, the Defendant imposed acquisition tax, 753,020, local education tax 1,132,950, special rural development tax 18,820, and additional tax thereon (1,74,510,50, 224,320, 33,640, 333,640, 40, 55,600, respectively, calculated by applying 25.46%, which is the Plaintiff’s share of sales from the lease of image equipment among the sales under the income statement for the year 2015 (hereinafter “the instant sales share”), on the ground that the Plaintiff used the instant real estate for any purpose other than the type of business eligible for acquisition tax reduction and exemption, and imposed tax on each of the reduced amount of tax.

(hereinafter “instant disposition”). The Plaintiff is dissatisfied with the instant disposition on May 10, 2016.