Calculation of transfer income amount in case of uncertainty of actual acquisition value even by the final return on tax base;

Even though a taxpayer has filed a final return on tax base as provided in Article 100 of the Income Tax Act, if the actual acquisition value of real estate is unclear and the actual acquisition value of real estate is not clear, the tax authority's conducting an investigation in order to identify the actual acquisition value is limited to its discretion and is not obligated, and it is sufficient to calculate capital gains by determining the acquisition value based on the current base value at the time of its acquisition, and in such a case, the transfer value shall also be based on its current base value and shall not

Articles 23(5), 45(1), 95, and 100 of the former Income Tax Act (Act No. 2705, Dec. 24, 1974)

Plaintiff

Head of Western Tax Office

Seoul High Court Decision 79Gu417 delivered on January 22, 1980

The part against the defendant in the original judgment shall be reversed, and that part of the case shall be remanded to the Seoul High Court.

The grounds of appeal by the defendant litigant are examined.

According to the reasoning of the judgment of the court below, the plaintiff acquired the ownership of 1/2 shares of the real estate as stated in its decision on July 19, 1975, and transferred them on August 26, 1977, and made a final return of transfer marginal profits from the transfer of assets without doing so, as stated in its decision, the defendant recognized the transfer value as 5,947,50 won which is the actual transaction price, and determined the transfer value as 905,850 won based on its current base value on the ground that the actual transaction price is unclear, and determined that the transfer value was calculated as 905,850 won, and the plaintiff made the final return of tax base as stated in its decision and determined that the transfer value was 80,000 won which is the actual transaction price calculated based on the above real transaction price and 80,000 won which is 58,000 won which is the acquisition value of the above real real estate. Thus, the plaintiff's acquisition value and 88,78,08,08,00 won.

However, considering the provisions of Article 23 (5) of the Income Tax Act that was in force at the time of entry into force, and Article 170 (3) of the Enforcement Decree of the same Act, if the actual transaction value and the acquisition value in calculating transfer income tax for the imposition of transfer income tax are unclear, such actual transaction value shall be based on the current base value if the actual transaction value is not clear, and if the actual transaction value cannot be determined by the return itself, it shall be determined based on such current base value unless the actual transaction value cannot be determined otherwise, and if the actual transaction value cannot be determined based on the current base value and the actual transaction value cannot be determined based on the current base value, it shall be determined based on the current base value if the actual transaction value cannot be determined based on the current base value and the actual transaction value cannot be determined based on the current base value, and if the person who was calculated based on the current base value and the actual transaction value cannot be determined based on the current base value, it shall be determined based on the existing base value and, therefore, if so, the actual transaction value cannot be determined based on such actual market value.

Therefore, the part of the original judgment against the defendant is reversed, and this part of the case is remanded to the Seoul High Court which is the original judgment. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Kim Hong-chul (Presiding Justice)