The meaning of "construction" as a requirement for refunding capital gains tax, etc. under the former Regulation of Tax Reduction and Exemption Act.

In order for a person who has transferred land to a construction site of national housing under the main sentence of Article 62 (1) of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 4165 of Dec. 30, 1989), to obtain a refund of capital gains tax or special surtax on the income accrued from the transfer, a person who has acquired the land shall construct a national housing within the period prescribed by the Presidential Decree (Article 50 (2) of the Enforcement Decree of the same Act before the amendment by Presidential Decree No. 12881 of Dec. 30, 1989). In this case, the term "construction" means a case where the construction of a national housing is not sufficient simply by the commencement or part of construction, that is, the completion

Article 62 (1) of the Regulation of Tax Reduction and Exemption Act (amended by Act No. 4165 of Dec. 30, 1989)

Plaintiff’s Lee Jae-hwan, Counsel for plaintiff-appellant

Korea

Seoul High Court Decision 94Na4990 delivered on May 13, 1994

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

We examine the grounds of appeal.

Under the main sentence of Article 62 (1) of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 4165 of Dec. 30, 1989), the person who acquired the land shall construct a national housing within the period prescribed by the Presidential Decree (Article 50 (2) of the Enforcement Decree of the same Act before amended by Presidential Decree No. 12881 of Dec. 30, 1989) in order to refund the transfer income tax or special surtax on the income accrued from the transfer of the land by the transferor to a construction site of national housing. In this case, the term "construction" means a case where the construction of a national housing is not sufficient simply by the commencement or part of the construction, that is, the completion of construction of a national housing.

In the same purport, the court below found that the above ground building was completed after the lapse of three years from the date of transfer of the land in this case, and dismissed the plaintiff's claim on the ground that there was no ground for refund under Article 62 (1) of the Regulation of Tax Reduction and Exemption Act, and there is no error of law by misunderstanding the legal principles as to "construction" under the above provision.

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

Justices Lee Jae-soo (Presiding Justice)