Whether the tax amount due to illegal taxation and the disposition of loss calculation are appropriate;

Even if the taxation disposition against a corporation was unlawful, the tax amount due for such taxation shall not be the reason for calculating the loss in the calculation of the income amount for the business year of the corporation.

Article 9 of the Corporate Tax Act, Article 12 of the Enforcement Decree of Corporate Tax Act

Attorney Cho Il-il Commercial Co., Ltd., Counsel for the plaintiff-appellant

The director of the tax office

Seoul High Court Decision 83Gu317 delivered on December 7, 1983

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

The Plaintiff’s attorney’s ground of appeal is examined.

First, according to the reasoning of the judgment below and the record, the plaintiff calculated the total amount of money and valuables donated 59 million won to the Gangseo-gun, Sejong-gun, Nelime Council during the business year during which 1977 had been imposed on the plaintiff's tax base return for corporate tax in 197. The defendant calculated the above amount of 57,518,834 won and imposed 33,130,845 won as corporate tax and defense tax in 1981. Since the plaintiff calculated the final tax base return for corporate tax in 1987 and 33,130,845 won as deductible expenses, the plaintiff's tax base return for corporate tax in 197 should be denied and the amount should be determined as 184,769,240 won and the amount of corporate tax in this case, which was donated to the plaintiff's local government in 197. Thus, it is clear that the plaintiff's tax base return for corporate tax in this case and the amount of deductible expenses should not be imposed on the plaintiff's 197.

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 Yoon Il-young (Presiding Justice)