If the tax authority fails to establish the legality of the estimated taxation, the disposition of the court;

In cases where the legitimacy or validity of estimated taxation is at issue, the tax authority bears the burden of proving that the method and content of the estimation are reasonable and reasonable, and thus, except where the tax authority proves or otherwise establishes a reasonable and reasonable and reasonable separate estimation method in a lawsuit, the court shall cancel the whole of the estimated taxation imposed by the tax authority on the ground that the taxation authority is illegal, and if the tax authority does not prove such assertion, the court shall actively find out the reasonable and reasonable estimation method and do not impose the tax authority's duty to calculate the amount to be imposed on the taxpayer.

Article 120 of the Income Tax Act, Article 21 of the Value-Added Tax Act

Supreme Court Decision 85Nu62 Decided July 9, 1985 85Nu967 Decided September 9, 1986

[Judgment of the court below]

Head of Central Tax Office

Daegu High Court Decision 85Gu287 delivered on May 15, 1987

The judgment below is reversed, and the case is remanded to the Daegu High Court.

As to the grounds of appeal by Defendant Litigation Performers:

According to the facts established by the court below, while the plaintiff operating a real estate rental business leases part of the building on the fifth fifth floor above the ground to the non-party and nine persons, he paid the tax base amount of value-added tax for each quarter from January to January 1, 1981, but the defendant was aware of the fact that the plaintiff received 24 million won monthly rent for the lease deposit and 1.8 million won during the above period from the non-party under the judgment on the lease contract and building name claim between the plaintiff and the non-party, and reported as if the plaintiff received only 4 million won monthly rent for the lease deposit from the non-party and 4 million won from the non-party, it is obvious that there was an error or omission in the details of the tax invoice, account book and other evidence, and that the plaintiff's lease revenue amount for each quarter was estimated to be decreased from the non-party's rent for each of the above 9 persons, and the court below recognized the plaintiff's decision that the other tax base was 1,800,000 won determined based on the rent of the non-party 1.

However, since the tax authority bears the burden of proving the legitimacy and validity of the estimated taxation in a lawsuit because the tax authority bears the burden of proving that the method and content of the estimation are reasonable, reasonable, and reasonable, or otherwise establishes a reasonable, reasonable and reasonable separate estimation method, the court, except for the case where the tax authority proves that the estimated taxation conducted by the tax authority is unlawful, and the court is bound to revoke the whole of the estimated taxation, and the tax authority does not actively find a reasonable and reasonable estimation method on the ground where the tax authority does not prove such estimation method and does not impose a duty to calculate the amount to be imposed on the plaintiff (see, e.g., Supreme Court Decision 85Nu62, Jul. 9, 1985; 85Nu967, Sept. 9, 196).

Therefore, the court below did not examine the rental income amount ex officio and did not err in the incomplete hearing.

However, in the Defendant’s re-pit decision, the Plaintiff’s lease revenue to the Nonparty was on-site investigation by lease contract and decision, and it is apparent that only the Plaintiff’s lease revenue to the other lessee was estimated and investigated by estimation. Therefore, if there exist any illegality in the procedure and method of the estimation investigation, such as the original adjudication, only the portion of the estimated investigation should have been revoked. However, the lower court revoked the entire disposition of this case, including the portion on-site lease revenue, which constitutes an unlawful revocation exceeding the scope of the taxation disposition subject to grounds for revocation, and thus, cannot

Therefore, without further determination, the lower judgment is reversed, and the case is remanded to the lower court for further proceedings consistent with this Opinion. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Yoon In-bok (Presiding Justice)