Whether a income earner may impose global income tax on dividend income and Class A earned income for which income tax is omitted (affirmative)

Even if the dividend income and Class A earned income are to be collected, if the income is to be added to the global income tax base as prescribed by the Income Tax Act, and the income is omitted, the income earner may also be levied as global income tax.

Article 142 of the Income Tax Act

Supreme Court Decision 80Nu4 delivered on April 22, 1980, 79Nu444 delivered on June 10, 1980, Supreme Court Decision 79Nu347 Delivered on September 22, 1981

[Defendant-Appellee] Plaintiff 1 and 3 others (Attorney Shin Young-chul, Counsel for defendant-appellee)

Head of Western Tax Office

Seoul High Court Decision 80Gu51 delivered on April 8, 1980

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

The grounds of appeal by the defendant litigant are examined.

According to the reasoning of the judgment below, the defendant imposed the source tax on the above dividends and earned income on the non-party company as the withholding agent of the above non-party company on April 20, 1979 on the ground that the non-party company did not pay the above non-party company's dividends and earned income, since the non-party company's Korea Textbook Co., Ltd, Korean High Text Textbook Co., Ltd, and Korea Authorized Text Text Co., Ltd. paid the above non-party company's income from January 1, 1971 to December 31, 197 after post-inspection, but the above non-party company's withholding agent imposed the source tax on the above non-party company's dividend income and earned income, but imposed the withholding tax on the plaintiff from April 20, 197 to 197 as global income tax and defense tax from 197 at the time of the imposition of the withholding tax from 197 to 197. Thus, the defendant's withholding agent of the income tax from the above income tax withholding agent is not equivalent to the above plaintiff's dividend income tax (the defendant).

However, according to the former Income Tax Act before December 24, 1974, the Plaintiff’s income from January 1, 1971 to December 31, 1974 is to be withheld from the person who pays Class A earned income under Article 43 of the same Act, but under Article 59 of the same Act, the global income tax is to pay the global income tax if the annual total amount of income is not less than three million won, and the person liable to pay global income tax is to pay the global income tax calculated by deducting the above global income tax from the global income tax base under Article 62, 65, and 66 of the same Act, and the calculated global income tax is to be collected from Article 17 of the same Act, which is to be collected by the Plaintiff’s global income tax base by deducting the above calculated global income tax amount from the global income tax base under Article 67 of the same Act.

Therefore, the court below did not review and decide whether the above income of the plaintiff from January 1, 1971 to December 31, 197 is subject to global income tax or global income tax under the Income Tax Act as above, and judged that the defendant's disposition of this case against the plaintiff was unlawful as a disposition of imposition against a person who is not liable for tax payment, and the defense detailed and disposition based on this case against the defendant's global income tax and the defense detailed and disposition based thereon. Thus, the judgment of the court below with merit shall not be reversed.

Therefore, the judgment of the court below is reversed, and the case is remanded to the Seoul High Court. It is so decided as per Disposition by the assent of all participating Justices.

Justices Lee Jong-soo (Presiding Justice)