The meaning of "date of designation of reserved land for replotting" under Article 66 (2) 2 of the former Enforcement Decree of the Restriction of Special Taxation Act concerning reduction of capital gains tax on self-arable farmland.

According to Article 69(1) of the former Restriction of Special Taxation Act (amended by Act No. 6762 of Dec. 11, 2002) and Article 66(2)2 of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 17829 of Dec. 30, 2002), in cases where a land substitution is designated prior to a replotting disposition, other than farmland, the farmland for which three years have elapsed from the date of such designation shall be excluded from the land substitution. In light of the legislative intent of the above provision, the structure and language of the provision, etc., the date of the designation of the land substitution shall be deemed to mean the date of the initial designation of the land substitution plan, other than the previous farmland, and it shall not be deemed as the date of authorization of the alteration of the land substitution plan.

Article 69(1) of the former Restriction of Special Taxation Act (amended by Act No. 6762 of Dec. 11, 2002); Article 66(2)2 of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 17829 of Dec. 30, 2002) (see current Article 66(4)2 of the Restriction of Special Taxation Act)

Plaintiff

Head of the tax office

Daegu High Court Decision 2004Nu2050 decided March 25, 2005

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

The grounds of appeal are examined.

According to Article 69(1) of the former Restriction of Special Taxation Act (amended by Act No. 6762 of Dec. 11, 2002) and Article 66(2)2 of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 17829 of Dec. 30, 2002), in cases where a land substitution is designated prior to a replotting disposition, other than farmland, the farmland for which three years have elapsed from the date of such designation shall be excluded from the land substitution. In light of the legislative intent of the above provision, the structure and language of the provision, etc., the date of the designation of the land substitution shall be deemed to mean the date of the initial designation of the land substitution plan, other than the previous farmland, and it shall not be deemed as the date of authorization of the alteration of the land substitution plan.

The judgment below to the same purport is just, and there is no error in the misapprehension of legal principles as to the reduction of capital gains tax on reserved land for replotting or the designation and disposal of reserved land for replotting.

The cases cited in the ground of appeal by the Plaintiff are different from those of this case, and thus, it is not appropriate to invoke this case.

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

Justices Yang Sung-tae (Presiding Justice)