Suwon District Court 2010Guhap4709 ( October 17, 2011)

National Tax Service Review and Transfer 2010-0310 ( December 29, 2010)

A stable site shall not constitute farmland subject to reduction or exemption of capital gains tax.

Even if the Enforcement Decree of the Farmland Act recognizes a stable site as farmland, so long as the scope of farmland subject to capital gains tax reduction is not included in the scope of farmland in the Enforcement Rule of the Restriction of Special Taxation Act, it cannot be interpreted that the stable site falls under the farmland subject to capital gains tax reduction or exemption in light of the principle of strict interpretation.

Article 27 of the Enforcement Rule of the Restriction of Special Taxation Act

2011Nu19651 Revocation of disposition of reduction or correction of capital gains tax

IsaA

Head of the High Tax Office

Suwon District Court Decision 2010Guhap4709 Decided May 17, 2011

October 11, 2011

November 15, 2011

1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

The decision of the first instance shall be revoked. The defendant shall revoke the disposition of refusal to rectify the reduction of KRW 118,626,460 for the plaintiff on September 30, 201.

1. Quotation of judgment of the first instance;

The reasoning for this Court’s explanation is that the reasoning for this case is stated in the part of the first instance judgment, except for the addition of the following judgments, and thus, the same is cited in accordance with Article 8(2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act.

2. Additional determination

Article 2(3)2(b) of the former Enforcement Decree of the Farmland Act (amended by Presidential Decree No. 21848, Nov. 26, 2009); however, the interpretation of tax laws should be interpreted in accordance with the law, barring any special circumstance, and it is not permitted to expand or analogically interpret the said provisions without any justifiable reason. In particular, it accords with the principle of fair taxation (see, e.g., Supreme Court Decision 2010Do1191, Jan. 27, 201). However, according to Article 2(3)2(1) of the former Enforcement Decree of the Farmland Act (amended by Presidential Decree No. 21848, Nov. 26, 2009), a stable site installed in a land used for cultivating farmland shall be deemed farmland, but the land actually used for cultivating farmland shall not be included in the scope of reduction or exemption of capital gains tax in the former Enforcement Decree of the Restriction of Special Taxation Act, in light of Article 27(1) of the former Enforcement Decree of the Restriction of the Special Taxation Act.

3. Conclusion

Therefore, the judgment of the first instance court is legitimate, and the plaintiff's appeal is dismissed as it is without merit. It is so decided as per Disposition.