When calculating the amount of capital gains, one of the transfer value and acquisition value shall be based on the actual transaction value, and whether the other may be based on the standard market price.

According to Article 23(5) of the former Income Tax Act (Act No. 2705, Dec. 24, 1974) and Article 170 of the Enforcement Decree of the same Act, the transfer value and acquisition value for the calculation of capital gains shall be based on the same actual transaction amount. If it is unclear, the transfer value and acquisition value shall be based on the same actual market price, and if it is unclear, the transfer value and acquisition value shall be based on the same standard market price.

Article 23 (5) of the former Income Tax Act (Act No. 205 of December 24, 1974), Article 170 of the Enforcement Decree of the same Act

Supreme Court Decision 80Nu95 Delivered on July 8, 1980

[Defendant-Appellee] Plaintiff 1 et al.

Head of the tax office;

Seoul High Court Decision 79Gu226 delivered on November 7, 1979

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal by Defendant Litigation Performers are examined.

According to the facts established by the judgment of the court below, the plaintiff acquired 43 square meters in Jongno-gu in Seoul and 27 square meters in the above ground buildings on April 28, 1976 and disposed of them on November 6, 1976. The defendant's acquisition value of the above real estate shall be based on the market price standard, and the transfer value shall be calculated based on the actual transaction price, and on this basis, it can be known that the plaintiff was subject to imposition of transfer income tax and defense tax. According to Article 23 (5) of the Income Tax Act and Article 170 of the Enforcement Decree of the same Act which was in force at the time of the enforcement of the transfer income tax, in calculating the transfer income amount for imposition of the transfer income tax, the transfer value and acquisition value shall be based on the actual market price standard, if the actual transaction value is unclear, and the transfer value and acquisition value shall be based on the above actual market price standard, and the transfer value and acquisition value of the real estate shall be determined based on 080 square meters in the above real market price.

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

Justices Dra-ro (Presiding Justice)