In the imposition of the transfer income tax under the former Income Tax Act (amended by Act No. 3576 of Dec. 21, 1982), the method of calculating the transfer margin in case of submission of data which can recognize the actual transaction price.

In an appeal litigation disputing taxation of capital gains tax, the period for submission of data verifying actual transaction price.

A. According to the provisions of Articles 23(2) and (4), and 45(1) of the former Income Tax Act (amended by Act No. 3576 of Dec. 21, 1982), and Article 170(3) of the Enforcement Decree of the same Act (amended by Presidential Decree No. 10977 of Dec. 31, 1982), in a case where a preliminary return on transfer margin or a final return on tax base is not made, the transfer margin may be determined based on the standard market price on the assumption that the actual transaction price is unclear, but if the data to recognize the actual transaction price is submitted, the transfer margin may be determined based on the actual transaction price, and the standard market price

B. In an administrative litigation disputing the illegality of taxation, the parties concerned may submit arguments and materials supporting the objective amount of tax liability until the closing of argument in the lawsuit, so even in an administrative litigation disputing the disposition of capital gains tax, the evidence proving the actual transaction value may be submitted until the closing of argument.

A. Articles 23 and 45 of the former Income Tax Act (amended by Act No. 3576 of Dec. 21, 1982); Article 170 (3) b of the Enforcement Decree of the same Act (amended by Presidential Decree No. 10977 of Dec. 31, 1982); Article 26 of the Administrative Litigation Act

A. (B) Supreme Court Decision 84Nu394 delivered on October 23, 1984; Supreme Court Decision 84Nu410 delivered on February 8, 1985; Supreme Court Decision 83Nu553 delivered on December 27, 1983; Supreme Court Decision 84Nu2 delivered on September 25, 1984; Supreme Court Decision 84Nu356 delivered on November 13, 1984

Plaintiff

Gangwon-gu Director of the District Office

Seoul High Court Decision 86Gu954 delivered on December 30, 1987

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

According to the provisions of Articles 23(2) and (4), 45(1), and Article 170(3) of the Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 10977, Dec. 31, 1982) which was in force at the time of the transfer of land in this case, where the preliminary return on transfer margin or the final return on tax base is not made, the transfer margin may be determined based on the standard market price on the assumption that the actual transaction price is unclear. However, where the data to recognize the actual transaction price is submitted, the transfer margin may be determined based on the actual transaction price and the standard market price cannot be based on the actual transaction price. In the administrative litigation over the illegality of taxation, the parties concerned can submit arguments and materials supporting the objective tax liability until the closing of the lawsuit, so in the administrative litigation over the issue of imposition of the transfer income tax, the Plaintiff can submit evidence on the actual transaction price until the closing of argument proving the actual transaction price (see Supreme Court Decision 8Nu410, Feb. 8, 1985).

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

Justices Ansan-man (Presiding Justice)