The appeal is dismissed.

The costs of appeal are assessed against the Plaintiff.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Article 98(1) of the former Corporate Tax Act (amended by Act No. 8141 of Dec. 30, 2006; hereinafter the same) provides that “any person who pays domestic source income to a foreign corporation under Article 93 subparag. 1 of the same Act shall withhold corporate tax at the time of the payment thereof and pay it.” Article 93 of the same Act provides that one of the domestic source income of a foreign corporation is “interest income and other payments under Article 16(1) of the Income Tax Act and interest on trust profits under Article 16(1) of the Income Tax Act: Provided, That this excludes interest on loans directly borrowed by its overseas business place for a resident or a domestic corporation’s overseas business place, and includes “income received from the domestic corporation, the domestic corporation, or a foreign corporation’s domestic business place or the non-resident’

Article 93 subparagraph 1 of the former Corporate Tax Act stipulates that interest income received by a nonresident or a foreign corporation from a domestic source income shall be excluded from only the interest on a loan directly borrowed by the overseas business place of a resident or a domestic corporation exceptionally, and the guarantor pays interest income to a creditor for the principal debtor only exists in the indemnity relationship between the guarantor and the principal debtor after payment, and it is necessary to determine the source of the income as at the time of payment of the interest income, and it is also necessary to consider the guarantor as the withholding agent when the creditor receives the interest income as the withholding agent at the time of payment from the source of income.