Article 170 of the former Enforcement Decree of the Income Tax Act is against the parent law

Article 170 of the former Enforcement Decree of the Income Tax Act shall not be deemed to be a violation of Article 23 (4) of the Income Tax Act because it is not clear that the actual transaction price is specified specifically.

Article 170(3) of the former Enforcement Decree of the Income Tax Act (Presidential Decree No. 9229 of December 30, 1978), Article 23(4) of the Income Tax Act

[Judgment of the court below]

Head of Yongsan Tax Office

Seoul High Court Decision 82Gu597 delivered on May 16, 1983

The appeal is dismissed.

The costs of appeal shall be borne by the plaintiff.

The grounds of appeal are examined.

1. In light of the records, the court below recognized that the plaintiff did not report the transfer of the property as provided in Articles 95 and 100 of the Income Tax Act even though he transferred the property as well as that he did not submit evidential documents to confirm the actual transaction price even after he was notified of the decision on the transfer margin of assets by the defendant, and that the transaction contract for the letter of good-faith No. 5-1 of the plaintiff's certificate No. 5-1 and the witness No. 7 cannot be viewed as evidentiary documents to confirm the actual transaction price, and there is no error of law such as the theory of lawsuit on the evidence preparation.

2. Therefore, the decision of the court below that the defendant's actual transaction price is legitimate in calculating the acquisition price and the transfer price at the time of the transfer of assets and determining the transfer price on the ground that the actual transaction price is unclear pursuant to Article 23 (4) of the Income Tax Act and Article 170 (3) of the Enforcement Decree of the same Act, which was in force at the time of the transfer of assets, is not in violation of the law such as the theory of lawsuit. Article 23 (4) of the above Act provides that the transfer price shall be based on the standard market price in cases where the actual transaction price is unclear, and the above Enforcement Decree of the Income Tax Act provides that the transfer price shall be based on the standard market price in cases where the actual transaction price is unclear, and the above provision of the Enforcement Decree shall not apply to cases where the transferor of assets who received the notice of asset transfer gains submits evidentiary documents that can confirm the actual transaction price pursuant to the standard market price pursuant to Article 23 (4) of the Act. Thus, it cannot be said that Article 170 of the above Enforcement Decree is unlawful.

3. The calculation of capital gains pursuant to the provisions of tax-related laws is contrary to Article 14 of the Framework Act on National Taxes, which cannot be adopted as an independent opinion, and the party members pointed out cannot be an appropriate precedent in this case where the matter is different.

Therefore, all of the appeals are justified, and the costs of the appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating judges.

Justices Lee Lee Sung-soo (Presiding Justice)