If it is found that the revenue amount was omitted from the reported details after a tax assessment based on a written investigation decision based on the final return on a tax base by a taxpayer, whether the decision of correction pursuant to Article 127 of the Income Tax Act is made (affirmative)

Even after the tax authority imposed a tax by a final return on the tax base of a taxpayer under Article 119 of the Income Tax Act and Article 168 of the Enforcement Decree of the same Act, if the revenue amount was not included in the details of the tax return and was omitted from the beginning, the decision of correction under Article 127 of the Income Tax Act may be made.

Articles 119 and 127 of the Income Tax Act, Article 168 of the Enforcement Decree of the Income Tax Act

Supreme Court Decision 85Nu459 delivered on December 10, 1985 (Gong1986,257) 89Nu2882 delivered on December 12, 1989 (Gong1990,287) 89Nu4840 delivered on January 25, 1990 (Gong190,574)

[Judgment of the court below]

Head of Yeongdeungpo Tax Office

Seoul High Court Decision 88Gu317 delivered on November 20, 1990

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

As to the Plaintiff’s ground of appeal

Even after the tax authority imposed a tax by a final return on the tax base of a taxpayer under Article 119 of the Income Tax Act, Article 168 of the Enforcement Decree of the same Act, if the revenue amount was not included in the reported tax amount and was omitted from the beginning, a decision of correction under Article 127 of the Income Tax Act may be made (see Supreme Court Decision 89Nu2882 delivered on December 12, 1989; Supreme Court Decision 89Nu4840 delivered on January 25, 1990).

According to the reasoning of the judgment of the court below, the court below first determined the amount of global income tax for the year 1984 and the year 1985 based on the plaintiff's report and notified the plaintiff of the omission of income from the office of the Seoul District Public Prosecutor's office which started an investigation due to the tax evasion report by the non-party Kim Jong-kin employed by the plaintiff and conducted a field investigation. The court below confirmed that the plaintiff omitted the amount of 873,547,638 won for the year 1984 and 689,69,698,074 won for the year 1984 and 1985, 1,227,95,544 won for the plaintiff's total amount of income for the year 1984 and 1,072,041,37 won for the year 1985, 1,000 won for the calculation of the amount of income for the plaintiff's gross income and there was no error in the misapprehension of legal principles as to support for the above tax base.

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

Justices Lee Woo-soo (Presiding Justice)