2010Guhap6519 global income and revocation of disposition

100

Head of Yeongdeungpo Tax Office

May 13, 2010

June 3, 2010

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit are assessed against the Plaintiff.

The Defendant filed a lawsuit against the Plaintiff on April 2, 2009 imposing global income tax of KRW 738,210 on the Plaintiff in the year 2007.

1. Details of the disposition;

A. The Plaintiff is running a tax business from 00 to 1990 by Yeongdeungpo-gu Seoul Metropolitan Government, Yeongdeungpo-dong 2. The Plaintiff was not a member of a cash receipt merchant as of June 30, 2007.

B. On April 2, 2009, the Defendant imposed an additional tax of KRW 738,214 equivalent to 5/1,000 on the ground that the Plaintiff’s place of business falls under the business of the customer counterpart, and the amount of income in the immediately preceding taxable period (2006) was KRW 370,238,248 and did not join the Cash Receipt merchant until June 30, 207, on the ground that the Plaintiff did not join the Cash Receipt merchant until June 30, 2007 (hereinafter “instant disposition”).

【Non-contentious facts, Gap evidence 1, 4, Eul evidence 1, the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

(1) The Plaintiff’s workplace provides bookkeeping agency services to the business operators and issues tax invoices. Thus, the Plaintiff’s workplace constitutes a type of business other than consumer merchant business (market business) subject to membership in a cash receipt merchant. Therefore, Article 210-3 and [Attachment Table 3-2] of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 22034, Feb. 18, 2010; hereinafter referred to as “Enforcement Decree of the Act”) stipulating the tax accountant’s business as a consumer merchant business violates the principle of substantial taxation.

(2) With respect to the service provided by the Plaintiff, the obligation to issue the tax invoice under the Value-Added Tax Act is imposed and thus, the non-issuance of the tax invoice is imposed, and if the additional tax is imposed, the additional tax will be imposed double.

(3) Even if the Plaintiff’s type of business is in the customer counterpart category, the additional tax on the membership of a cash receipt merchant shall be calculated by applying the additional tax rate of 5/1,000 only for the price provided to the visa.

(b) Related statutes;

As shown in the attached Form.

C. Determination

(1) As to the plaintiff's first argument

Article 162-3 of the Income Tax Act (Obligation to join and issue Cash Receipt Merchants) was newly established on December 30, 2006 in order to expand the use of Cash Receipts and secure transparency of the members by requiring a business operator meeting the requirements prescribed by the Presidential Decree to enter into a Cash Receipt merchant and enter into force on July 1, 2007. On the other hand, in the case of a tax business, it is reasonable to deem that not only the revenue through a plane captain agent service provided to the private business operator but also the revenue through a tax agent service, advisory service, consultation, etc. provided to the non-business operator. Considering the above legislative purpose and transaction reality, even if the Plaintiff provided only a plane captain agent service to the private business operator, such circumstance alone does not constitute a violation of the principle of substantial taxation.

(2) On the second argument of the plaintiff

Additional tax on non-issuance of tax invoices and non-issuance of cash receipt merchants are different from the applicable laws and regulations, the applicable award, etc. Accordingly, the operator who did not join a cash receipt merchant is on behalf of the operator.

Even if the penalty tax is imposed accordingly, it is different from the penalty tax due to non-issuance of the tax invoice, so it cannot be said that it is a double imposition of the penalty tax.

(3) On the third argument of the plaintiff

If the plaintiff concurrently operates other types of business along with the tax-related business which is the consumer counterpart business, only the revenue amount of the business type subject to cash receipt franchise store should be the basis for the calculation of the additional tax. However, in this case, the defendant calculated the additional tax based on the total revenue amount that the plaintiff acquired through the tax-related business during the taxable period, so it cannot be said that

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit, and it is so decided as per Disposition.

Judges of the presiding judge 000

Judges

Judges 000

Relevant statutes

▣ 소득세법

Article 81 (Additional Tax)

(1) The business operator who is obligated to become a Cash Receipt merchant, in violation of Article 162-3 (1), fails to perform such duty.

(b) The business operator who has become a Cash Receipt merchant, in violation of paragraph (3) or (4) of the same Article, issues Cash Receipts;

(1) In cases where an amount falling under any of the following subparagraphs has not been issued or has been issued differently from the fact:

It shall be added to the determined tax amount for the tax period: Provided, That in cases falling under subparagraph 2, the same shall not apply where the amount subject to issuance of cash receipts is less than five thousand won per case.

1. Where he/she fails to become a Cash Receipt merchant: The period during which he/she fails to become a Cash Receipt merchant;

(1) The term "period of subscription" in this subparagraph means the number of days from the day following the date of entry to the day preceding the date of entry;

If the insured period exceeds two or more taxable periods, the insured period shall apply for each taxable period).

Amount of income (limited to the amount of income of business types subject to insurance, etc.) equivalent to 5/1000 of the amount of income;

2. In such cases, the amount of income of the insured period shall be calculated by the following formula:

Amount of income = Amount of income in the relevant taxable period x Unregistered period / 365 (366 in a leap year)

Article 162-3 (Obligation, etc. to join Cash Receipt Merchants and to Issue Cash Receipt Merchants)

(1) Business entities mainly supplying goods or services to consumers other than business entities, in consideration of the type, size, etc.

A business operator who meets the requirements prescribed by Presidential Decree shall become a Cash Receipt merchant by installing a Cash Receipt Issuing Device at the end of a credit card terminal, etc. within three months from the date meeting such requirements.

(3) Where the other party requests the issuance of a Cash Receipt after supplying goods or services in cash in connection with the business, the Cash Receipt merchant member shall not refuse to issue the Cash Receipt or issue it falsely.

▣ 구 소득세법 시행령 ( 2010 . 2 . 18 . 대통령령 제22034호로 개정되기 전의 것 )

Article 210-3 (Joining Cash Receipt Merchants, etc.)

(1) "Goods or goods to consumers who meet the requirements prescribed by Presidential Decree" in Article 162-3 (1) of the Act.

A business operator who is engaged in the customer business referred to in attached Table 3-2 that supplies services, and falls under any of the following subparagraphs (hereinafter referred to as "person eligible to become a Cash Receipt merchant"): Provided, That this shall not apply to a business operator prescribed by Ordinance of the Ministry of Strategy and Finance, which is difficult to become a Cash Receipt merchant:

1. Amount of income of the immediately preceding taxable period (including the amount of income increased by a determination or revision; hereafter in this Article, the same shall apply);

(u) A business operator whose total amount of 24 million won or more is at least 24 million won;

(2) In applying paragraph (1) 1, the amount of income of a business operator who concurrently runs different business from that of a customer counterpart business shall be that of a consumer counterpart business, and the amount of income of two or more business operators who operate a consumer counterpart business shall be calculated by summing up the amount of income of each business place.

[Attachment 3-2]

Consumer Commercial Business (Related to Article 210-3)

A person shall be appointed.