The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. Article 26-2(1) of the former Framework Act on National Taxes (amended by Act No. 9263, Dec. 26, 2008; hereinafter the same) provides that in principle, five years of exclusion period of national taxes shall be set at five years (Article 3). However, where “where a taxpayer evades national taxes or has refunded or deducted national taxes by fraudulent or other unlawful means,” the exclusion period of national taxes shall be extended to ten years from the date on which the national taxes can be imposed.

(1) Item 1). The purpose of legislation of the above provision is, in principle, to promptly determine tax-related relations, the exclusion period of the right to impose national taxes while five years are required to impose national taxes.

If it is difficult to find out the facts or there is an illegal act such as creating false facts, it is difficult to expect the exercise of the imposition right because it is difficult for the tax authorities to find that the report of omission is a report of omission, and it is difficult for them to extend the exclusion period for imposition of national taxes to ten years.

Therefore, "Fraud and other unlawful acts" under Article 26-2 (1) 1 of the former Framework Act on National Taxes refers to deceptive schemes and other active acts that make it impossible or considerably difficult to impose and collect taxes, and it does not constitute mere failure to report under the tax law or making a false report without accompanying any other acts.

Meanwhile, even if income is obtained through a disguised name, if it is not related to tax evasion, it does not constitute “Fraud or other unlawful act” under Article 26-2(1)1 of the former Framework Act on National Taxes solely on the basis of the nominal name. However, it comes from the purpose of tax evasion, such as avoidance of progressive tax rates, diversification of income, application of special cases of exemption or reduction, use of the name of insolvent person who does not pay taxes, etc. Furthermore, it comes from the purpose of tax evasion, and further, the preparation of a false sales contract and the false payment of capital gains tax,