If the introduction fee is more than the brokerage fee prescribed by the Ordinance of the Seoul Metropolitan Government, whether the amount actually paid shall be deducted as the necessary expenses (affirmative)

The introduction fee shall be included in the necessary expenses to be deducted from the transfer value in calculating transfer marginal profits as it falls under Article 45 (1) 4 of the Income Tax Act and Article 94 (4) of the Enforcement Decree of the same Act as "transfer expenses directly disbursed to transfer real estate", and even if the introduction fee is more than the brokerage fee prescribed by the Seoul Special Metropolitan City Ordinance, the deduction of necessary expenses shall be based on the actual amount paid under the principle of substantial taxation.

Articles 7(2) and 45(1)4 of the Income Tax Act, Article 94(4) of the Enforcement Decree of the same Act, Article 14(2) of the Framework Act on National Taxes

Supreme Court Decision 85Nu332 delivered on October 22, 1985 (Gong1985,1570) 90Nu6439 delivered on January 25, 1991 (Gong1991,86)

For Franchising

The Director of the Pacific District Office

Seoul High Court Decision 90Gu2736 delivered on December 11, 1990

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

As to the Grounds of Appeal

According to the reasoning of the judgment of the court below, the court below recognized the fact that the land of this case, which the plaintiff and non-party Lee Jong-tae shared with the same share of the transfer value, was sold in gold 225,00,000 won on September 24, 1987, and paid KRW 7,000,000 as the introduction fee to the non-party Park Young-young who introduced the land. The above introduction fee constitutes "transfer fee directly disbursed for the transfer of real estate" under Article 45 (1) 4 of the Income Tax Act and Article 94 (4) of the Enforcement Decree of the same Act, and should be included in the necessary expenses to be deducted from the transfer value in calculating transfer margin. The above fact-finding and judgment of the court below is proper, even if the above introduction fee is more than the brokerage fee stipulated in the Seoul Special Metropolitan City Ordinance, since the deduction of necessary expenses is in accordance with the principle of substantial taxation, and there is no error in the misapprehension of legal principles or misapprehension of legal principles like the rules of evidence.

The appeal is dismissed for more than one reason, and it is so decided as per Disposition by the assent of all participating judges.

Justices Yoon Young-young (Presiding Justice)