The case holding that "area within 20 km in straight line from the farmland concerned" under Article 66 (1) of the Enforcement Decree of the Restriction of Special Taxation Act means the area within 20 km in straight line, not the distance from the location of the farmland concerned to the boundary of Si/Gun/Gu where the farmland owner resides.

Article 69(1) of the former Restriction of Special Taxation Act (amended by Act No. 9276 of Dec. 29, 2008); Article 66(1)3 of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 20854 of Jun. 20, 2008)

Plaintiff

Head of the Jeonju Tax Office

Gwangju High Court Decision 2009Nu2176 decided January 22, 2010

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).

Article 69 (1) of the former Restriction of Special Taxation Act (amended by Act No. 9276 of Dec. 29, 2008) provides that "the tax amount equivalent to 100/100 of the capital gains tax on the income accruing from the transfer of land prescribed by the Presidential Decree among the land directly cultivated by the resident prescribed by the Presidential Decree who resides in the seat of land for not less than eight years (not including the content within the boundary of the block), shall be reduced or exempted." Article 66 (1) of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 20854 of Jun. 20, 2008; hereinafter the same shall apply) provides that "the resident prescribed by the Presidential Decree who resides in the seat of farmland" in the main sentence of Article 69 (1) of the Act refers to the person who resides in the boundary line of the area falling under any of the following subparagraphs for not more than eight years and has cultivated the farmland from the boundary line of the area to the 200km of the land:

In the same purport, the court below is just in holding that the transfer of this case does not meet the requirements for reduction or exemption of capital gains tax under Article 66 (1) 3 of the former Enforcement Decree of the Restriction of Special Taxation Act on the ground that the distance from the land of this case to the plaintiff's residence exceeds 20 km, and there is no error of law such

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 Cha Han-sung (Presiding Justice)