Seoul Administrative Court 2007Gudan8570 ( May 26, 2008)

National High Court Decision 2006No3751 (Law No. 8704.09)

A disposition of dividing the actual transfer value by the ratio of the standard market price due to unclear land and building value.

Considering that there is no reasonable reason for the transfer value of the building to be 600 million won or the standard for calculating the value of the building, that the building seems to be to be removed after the transfer, and that there is a big difference between the value of the building and the value of the standard market price, the value of the building is difficult to be considered as the actual transaction value, and it should be considered the arbitrarily

The contents of the decision shall be the same as attached.

Article 96 of the former Income Tax Act, Article 99 of the former Income Tax Act

Article 100 of the former Income Tax Act, Article 166 of the former Enforcement Decree of the Income Tax Act

1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

The judgment of the first instance shall be revoked. The imposition of capital gains tax of KRW 260,849,640 against the plaintiff on August 9, 2006 by the defendant shall be revoked.

The court's reasoning for this case is that "38,69,89,798 won" was 424,708,798 won under the third below of the judgment of the first instance court, and "the relevant Acts and subordinate statutes" under the fourth below are "attached Acts and subordinate statutes", and "the plaintiff's assertion" under the seventh above is 38,692 won (3,760,159,11,102 square meters) under the seventh above, and "the land of this case is 338.692 won (3,760,159,891,102 square meters)" under the former Enforcement Decree of the Income Tax Act, and it is not clear that "the land of this case is 40,000 won or less" under the second sentence of the Income Tax Act and "the land of this case which is calculated under the premise that the value of the land of this case is calculated under the premise that the sale price of the apartment is calculated under the premise that it is reasonable."

Therefore, the judgment of the court of first instance is justifiable, and the plaintiff's appeal is dismissed as it is without merit.

It is so decided as per Disposition.