The meaning of "acquisition of shares or equities" in paragraph 6 of this article

Article 105 (6) of the Local Tax Act (amended by Presidential Decree No. 7532, Dec. 31, 1974) provides that "acquisition of shares or equity interest" means acquisition of shares or equity interest from shareholders or partners, as well as acquisition by succession of shares issued by a company due to the increase of its capital. Article 78 (1) of the Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 7532, Dec. 31, 1974) provides that "acquisition of shares or equity interest" means acquisition of shares or equity interest from shareholders or partners, but it cannot be an interpretation of Article 105 (6) of the Local Tax Act prior to its enforcement.

Article 105(6) of the Local Tax Act (Presidential Decree No. 2593, Mar. 12, 1974); Article 78(1) of the Enforcement Decree of the Local Tax Act (Presidential Decree No. 7532, Dec. 31, 1974);

Attorney Kim Jin-jin et al., Counsel for the defendant-appellant-appellee

Attorney Han-gu Seoul Metropolitan Government Head of Yeongdeungpo-gu Office

Supreme Court Decision 78Nu304 Delivered on October 10, 1978

Seoul High Court Decision 78Gu598 delivered on July 31, 1979

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

We examine the grounds of appeal by the Plaintiff’s attorney.

According to Article 105 (6) of the Local Tax Act (Act No. 2593, Mar. 12, 1973) which entered into force at the time of September 22, 1973 by the Plaintiff’s acquisition of new shares equivalent to 81.96% of the total shares of the non-party forest stock company, the lower court determined that the Plaintiff’s acquisition tax under Article 18 of the same Act was imposed on the oligopolistic shareholder by deeming that the Plaintiff acquired the shares or equity shares of the corporation and became an oligopolistic shareholder pursuant to Article 23(3) of the Act. Article 23(3) of the Enforcement Decree of the Local Tax Act provides that “The above provision of Article 17 of the Local Tax Act provides that the Plaintiff shall not be deemed to have been established at the time of acquisition of new shares or equity shares of the corporation, and that the above provision of the Local Tax Act provides that the Plaintiff’s acquisition of shares or equity shares shall not be deemed to have been established at the time of acquisition of new shares or equity shares of the corporation.”

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

Justices Hah-hova (Presiding Justice)