Whether the transfer expenses are deducted in calculating the transfer margin based on the actual transaction price.

Article 45 (1) 4 of the Income Tax Act stipulates the transfer expenses prescribed by the Presidential Decree as necessary expenses to be deducted from the transfer value in the calculation of gains on transfer. Since the transfer value is based on the standard market price and exceptionally on the actual market price under Article 23 (4) of the same Act, in the calculation of gains on transfer, the transfer expenses prescribed by the Presidential Decree, regardless of whether it is based on the standard market price in the calculation of gains on transfer, shall be deducted from

Article 45 (1) 4 of the Income Tax Act, Article 94 (4) of the Enforcement Decree of the Income Tax Act

Plaintiff

Head of Mapo Tax Office

Seoul High Court Decision 86Gu863 delivered on April 21, 1987

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

As to the grounds of appeal by Defendant Litigation Performers:

Article 45 (1) 4 of the Income Tax Act citing the transfer expenses prescribed by the Presidential Decree as necessary expenses to be deducted from the transfer value in calculating the transfer margin. Since the transfer value is based on the standard market price in principle and the actual transaction price exceptionally under Article 23 (4) of the same Act, in calculating the transfer margin, the transfer expenses prescribed by the Presidential Decree, regardless of whether it is based on the standard market price or not, shall be deducted from the transfer value as necessary expenses.

In the same purport, the court below held that the land of this case owned by the plaintiff and the non-party in the same share ratio should be deducted from the transfer value in accordance with the plaintiff's share ratio of 1.5 million won from the transfer value of the land in order to transfer the above land, among the amount of 3 million won paid as the purchase and sale recommendation expenses. Thus, there is no error of law by misapprehending the legal principles as to the necessary expenses for capital gains, such as the theory of lawsuit, and there is no error in the misapprehension of legal principle

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 Kim Jong-chul (Presiding Justice)