1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

1...

1. Details of the disposition;

A. On November 19, 2008, the auction procedure was initiated in Busan District Court W with respect to the building with B, 281 square meters and its ground (hereinafter collectively referred to as “instant real estate”) located in Busan District Court on November 19, 2008. The Plaintiff was awarded a bid for the instant real estate amounting to KRW 523 million in total in the above auction procedure and paid the bid price in full, and completed the registration of ownership transfer on October 21, 2009.

B. On July 1, 2010, the Plaintiff completed the registration of ownership transfer for the instant real estate to C on May 4, 2010, and ② C completed the registration of ownership transfer for the said real estate to D and E (hereinafter “D”) on June 30, 2010.

C. On August 13, 2010, the Plaintiff filed a preliminary return on capital gains tax with the transfer value of the instant real estate as KRW 550 million.

As a result of the investigation of capital gains tax on the instant real estate around June 2014, the Defendant: (a) deemed that C only lent the instant real estate to D, etc. as an insolvent, and in fact, the Plaintiff transferred the instant real estate to D, etc. in KRW 690 million on September 1, 2014; and (b) notified the Plaintiff of the correction and notification of capital gains tax of KRW 126,91,160 for the year 2010 (=total determined tax amount of KRW 127,68,142 - total tax amount of KRW 668,975, and less than KRW 100,00 for the amount of tax already paid (hereinafter the same shall apply).

E. Since then, on June 2016, the director of the Central Regional Tax Office ordered the Defendant to rectify the transfer value of the instant real estate as KRW 1,540,000,000,000. Accordingly, on September 27, 2016, the Defendant issued a corrective notice to the Plaintiff on September 27, 2016: (a) KRW 872,008,420 of the capital gains tax for the year 2010 (= KRW 99,676,569 of the gross determined tax amount + KRW 494,658,450 of the gross determined tax amount + KRW 505,05,00 of the additional tax amount KRW 505,68,142 of the already paid tax amount)

(f) The Plaintiff is dissatisfied with the instant disposition on December 8, 2016.