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Case Number of the immediately preceding lawsuit
Gwangju High Court-2015-Nu-5701 ( October 28, 2016)
Case Number of the previous trial
Gwangju District Court-2014-Gu Partnership-1465 (No. 21, 2015)
Title
The propriety of the disposition of imposing the dividend income tax by deeming the amount remitted to a foreign mother corporation as an illegal outflow from the company;
Summary
The remittance of the instant amount under the debt instrument made between a foreign parent corporation and a domestic subsidiary is not the amount to be included in gross income because it cannot be deemed that it was out of the company.
Related statutes
Article 67 of the Corporate Tax Act
Cases
Supreme Court-2016-Du-35113 ( October 23, 2016)
Plaintiff-Appellant
○○○ Limited Liability Company
Defendant-Appellee
○ Head of tax office
Judgment of the lower court
Gwangju High Court Decision 2015Nu5701 Decided October 28, 2016
Imposition of Judgment
2016.23
Text
The judgment of the court below is reversed.
The judgment of the first instance shall be revoked, and the lawsuit of this case shall be dismissed.
All costs of the lawsuit shall be borne by the defendant.
Reasons
The grounds of appeal are examined.
When an administrative disposition is revoked, such disposition shall lose its validity and no longer exists, and a revocation lawsuit against a non-existent administrative disposition is unlawful as there is no benefit of lawsuit (see, e.g., Supreme Court Decision 2012Du18202, Dec. 23, 2012).
According to the records, the Defendants may know the fact that the instant disposition was revoked ex officio on March 25, 2016, which was after the filing of the instant appeal. As such, the instant lawsuit had already been extinguished and sought revocation of a disposition that did not exist, and became unlawful as there was no benefit of lawsuit.
Therefore, the judgment of the court below shall be reversed, and since this case is sufficient for the court to directly judge, the judgment of the court of first instance shall be revoked, and the lawsuit of this case shall be dismissed, and the defendant shall be borne by the defendant pursuant to Article 32 of the Administrative Litigation Act. It is so decided as per Disposition by the assent of all participating Justices