1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

Details of the disposition

On May 20, 2008, the Plaintiff: (a) was a corporation manufacturing parts related to wire and wireless telecommunications equipment and parts related to electrical and electronic devices; (b) established B (hereinafter referred to as “China subsidiaries”); and (c) on June 30, 2010, the Plaintiff established C (hereinafter referred to as “VE subsidiaries”); and (d) established B (hereinafter referred to as “VE subsidiaries”).

(hereinafter collectively referred to as “instant foreign corporation.” The Plaintiff received respective dividends from a Chinese subsidiary on October 2012 and May 2013, and from Vietnam subsidiaries on June 2013 and June 2014.

The Seoul regional tax office conducted a tax investigation on June 4, 2015 to September 1, 2015 with the Plaintiff for 2010-2014 business year, and as a result, the Plaintiff (i) transferred income to the foreign corporation of this case, or received income from the foreign corporation of this case (hereinafter referred to as “transfer income portion”), and (ii) chosen the tax credit law, which is not the Act on the Deduction of Inclusion in Expenses as the method of deducting foreign corporate tax when filing a corporate tax return, and (ii) did not properly implement the tax credit law, which is not the Act on the Deduction of Inclusion in Expenses, as the indirect foreign tax amount paid to the foreign government (where the income amount of a domestic corporation includes dividend income received from a foreign company, the amount corresponding to the dividend amount, among the amount of foreign corporate tax levied on the income of the foreign company of the foreign corporation), and directly paid

(hereinafter referred to as "the dispute portion") and notified the defendant of taxation data.

On December 10, 2015, the Defendant issued a revised notice of KRW 459,634,483 of the corporate tax for the business year 2012 (including additional tax), and KRW 2,064,071,551 of the corporate tax for the business year 2013 (including additional tax), and corrected corporate tax for the business year 2013 and refunded it to the Plaintiff on December 14, 2015.

The Plaintiff filed an objection on February 23, 2016 with the Tax Tribunal on November 25, 2016.