The method of calculating gains on transfer where only one of the acquisition value and transfer value is unclear;

In calculating gains on transfer, even in cases where both the transfer value and the acquisition value are unclear, and only one of the two values is unclear, the gains shall be calculated on the basis of the current base value, and the value of the other unclear one shall be calculated on the basis of the current base value, and the value of the other is not allowed on the basis of the actual transaction value.

Article 59-2(3) of the Corporate Tax Act

Supreme Court Decision 80Nu95 Decided July 8, 1980; 79Nu396 Decided October 27, 1980; 80Nu616 Decided March 10, 1981; 80Nu571 Decided April 14, 1981; 82Nu557 Decided April 26, 1983

[Defendant-Appellee] Attorney Jeon Jong-gu, Counsel for defendant-appellee

The director of the Southern Incheon District Office

Seoul High Court Decision 80Gu404 delivered on May 26, 1981

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal by the defendant litigant are examined.

According to Article 59-2 (3) of the Corporate Tax Act (amended by Act No. 2932, Dec. 22, 1976) which was enforced at the time when the taxation requirement of this case was established, gains on transfer, which are the tax base of special surtax, shall be the amount obtained by deducting the acquisition value and the expenses as determined by the Presidential Decree from the transfer value, and where the transfer value and the acquisition value are unclear, the transfer value and the amount based on the standard market price at the time of transfer determined by the Presidential Decree, respectively, shall be the transfer value and the acquisition value at the time of acquisition. In addition, where both the transfer value and the acquisition value are unclear and only one of the two values is unclear, the above two values shall be calculated based on the standard market price according to the above provisions, and the other party's price shall be calculated based on the actual market price, and it shall be deemed that the other party's actual transaction price shall not be permitted (see Supreme Court Decision 82Nu557, Apr. 26, 1983). Therefore, the court below's decision that the transfer price of this case shall be determined as the Plaintiff's acquisition price.

Therefore, the appeal is dismissed, 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 Jong-soo (Presiding Justice)