The case holding that although a church allowed the church to use the building owned by it for the purpose of using it for profit-making business, it cannot be deemed that the above church acquired the building for the purpose of using it for the purpose of profit-making business, considering the frequency of its use, usage fees, utilization status, etc.

The case holding that although a church allowed the believers to use the building owned by it for the purpose of using it for profit-making business, it cannot be deemed that the above church acquired the building for the purpose of using it for the purpose of profit-making business, considering the frequency of its use, usage fees, utilization status, etc.

Articles 107 subparag. 1 and 127(1)1 of the former Local Tax Act (amended by Act No. 6841 of Dec. 30, 2002); Articles 79(1)1 and 94(1) of the former Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 18035 of Jun. 30, 2003)

The Flag Korea Flag Association (Law Firm Rois, Attorneys Exclusive Tae-tae et al., Counsel for the defendant-appellant)

Original City Mayor (Attorney Kim Ho-soo et al., Counsel for the plaintiff-appellant)

May 20, 2004

1. The Defendant’s disposition of imposing each tax on the Plaintiff listed in the separate sheet shall be revoked.

2. The costs of lawsuit shall be borne by the defendant.

The same shall apply to the order.

1. Details of the disposition;

[Ground for Recognition: Facts without dispute, evidence Nos. 1-1 through 4-2, evidence No. 6, evidence No. 7-1, 2, and evidence No. 8; purport of the whole pleadings]

A. In around August 6, 1989, the Plaintiff opened a new 158-15 square meters of land in Hanju-si in order to carry out religious training through the permanent religious activities of the believers belonging to his Do, and completed three communal accommodation facilities, such as one underground floor, five stories above ground, five stories above the total floor area, five stories above 5,839.59 square meters, and a flag room. However, the Plaintiff’s use of 59,560 square meters among the above land was changed on the ground of 49,065 square meters above the total floor area of 49,208.3 square meters (e.g., B1,085.95 square meters, 64.80 square meters of goods, 158.40 square meters below the total floor area, 39,560 square meters among the above land, and 198.3 square meters below the construction of a new 34.75 square meters, 2065 square meters among the above land, 206.4 square meters among the members of a 158.4 square meters

B. However, the defendant imposed and notified the acquisition tax, registration tax, etc. as stated in the purport of the claim on June 10, 2003 and September 26, 2003 (hereinafter referred to as the "disposition of this case") on the ground that the received houses of this case are used for the missionary work of the National Association of the National Association of the National Federation, etc., and cannot be viewed as real estate used directly for the purpose of the business of the plaintiff church.

2. Whether the instant disposition is lawful

A. The parties' assertion

The defendant asserts that the disposition of this case is lawful on the grounds of the above disposition and the relevant laws and regulations, and the plaintiff used the building of this case as a place where the believers of the plaintiff church was able to dived, and used it as a place where the building of this case was towed. However, the remaining idle facilities temporarily receive less than actual expenses from the non-self-support church or other religious organizations, and almost free of charge. This is the comprehensive concept that it is not the exclusive or territorial nature of the original missionary work business, but the use of the veterinary hall of this case for the expansion of the religious area and the missionary work business, and the opening and encouragement of the use of the veterinary hall of this case for the expansion of the religious area and the missionary work business, and therefore, the defendant's disposition of this case

B. Relevant statutes

former Local Tax Act (amended by Act No. 6841 of Dec. 30, 2002, hereinafter referred to as the "former Local Tax Act")

No acquisition tax shall be imposed on what falls under any of the following subparagraphs (excluding objects of taxation under Article 112 (2)): Provided, That where any profit-making business prescribed by Presidential Decree is used, or is not used directly for such purpose within one year (three years in cases falling under subparagraph 1) from the date of acquisition, without justifiable grounds, or where it is sold or used for other purposes without using directly for such purpose for two or more years from the date of use, acquisition tax on the relevant portion shall be imposed:

1. Acquisition of real estate by a non-profit entrepreneur prescribed by Presidential Decree, who is for memorial services, religion, charity, academic purpose, art, and public services;

Article 127 (Non-Taxation Based on Classification of Purposes) (1) No registration tax shall be imposed on those falling under any of the following subparagraphs (excluding objects of taxation under Article 112 (2)): Provided, That where they are used for profit-making business prescribed by Presidential Decree, or are not used directly for the original purpose without justifiable grounds within one year (three years in case of subparagraph 1) from the date of registration or record, or where they are sold or used for other purposes without using directly for the original purpose for over two years from the date of their use, registration tax shall be imposed on

1. Registration of real estate to be used by a nonprofit business operator prescribed by Presidential Decree for memorial services, religion, charity, academic purpose, art, and public services;

Enforcement Decree of the former Local Tax Act (amended by Presidential Decree No. 18035 of Jun. 30, 2003)

Article 79 (Scope of Non-Profit Entrepreneur) (1) "Non-Profit entrepreneur prescribed by Presidential Decree" in subparagraph 1 of Article 107 of the Act means any of the following persons:

1. Organizations for religion and ancestral rites;

Article 94 (Scope, etc. of Non-Profit Business Operators) (1) "Non-Profit business operators prescribed by Presidential Decree" in the main sentence of Article 127 (1) 1 of the Act means non-profit business operators under Article 79.

C. Facts of recognition

[Grounds for Recognition: Evidence No. 5, Evidence No. 9, Evidence No. 10 through 13-1, 2, Evidence No. 14-22, Evidence No. 14-1 and 2, Evidence No. 1 and 2, Evidence No. 1 and 3, and the purport of the whole pleadings]

(1) On July 6, 1980, the Plaintiff established the main party in Gangdong-gu Seoul Metropolitan Council and developed it under the jurisdiction of the Korean Egymnasium, and is a church whose registrant is about 70,000 persons at present.

(2) In order to carry out the missionary project directed by the Plaintiff church, the Plaintiff opened three facilities in the new forest Myeong-ri in the new forest Myeong-ri around November 1998. After completion of the construction and expansion of the training hall of this case on November 29, 2002, the Plaintiff received a certain fee from the members of the church from around November 1999 as management expenses and opened the training hall of this case to the members of other churches.

(3) The term "the 'permanent training center of the plaintiff church' is a building used under the name of the plaintiff church to get the believers from their daily lives and to get the rest and the inside of the church, which is being used as a field training hall for the collective events of the church, such as the mountain village council, and the ordinary believers have completed daily work and arrive at a day by using the Youngdong Highway in Seoul Special Metropolitan City, after they arrive at the day, they have been made in the court, and it was made for the way to set up a straw from the accommodation, or for the purpose to set up a straw from the accommodation, and it is impossible to cook out in the accommodation.

(4) On October 1, 1999, the Plaintiff enacted the management rules of the swimming hall of this case as follows, and provided grounds for other members of the Plaintiff church and those who are not the Plaintiff church to be used under certain conditions.

Article 1 (Purpose)

1. The purpose of the establishment of the Fame Diplomatic Academy of Korea and Japan (hereinafter referred to as the "Cymnasium") is to inspire religious awareness and ultimately contribute to the relief of all humanity by providing the Famnasium (hereinafter referred to as the "Cymnasium") as well as the place for religious activities, military training and religious education of all the symnasiums home and abroad, and by facilitating missional activities.

2. The purpose of this Rule is to prescribe matters concerning the management and operation of the facilities of the Gyeyang-gu.

500.00

Article 4 (General Principles for Use) The water-related facilities shall be used on the basis of the following principles:

① This church shall be used for the training of the honor of various religious assemblies and their religious attitudes.

(2) Where any person wishes, regardless of whether he/she belongs to another church, such as another church or a dial religious organization, to raise the religious awareness of dyslexists, and to use it at a place appropriate for missionary activities, the use of it shall be open to the extent that it does not interfere with the use of paragraph

(3) When opening the use to other churches, organizations, etc. under paragraph (2), it shall be used free of charge without imposing any consideration for use for any name: Provided, That meals and voluntary audit and inspection funds shall be excluded in cases of eating at a cafeteria of a veterinary hall.

(4) No use shall be made for any purpose other than that of religion.

Article 5 (Scope of Use) The use of facilities of the veterinary hall shall meet the following standards:

1. The receipts and disbursements of the present church by each department, the industrial special interest promotion assembly, and the gold-counting association and the press association .. of the Ministry of Finance and Economy.

(3) Meetings, briefing sessions, and seminars of the press organizations, such as other churches, new schools, and theology universities.

(4) Other missionary activities and religious assemblies held as part of the gifted training of all sclimatics.

500.00

Article 8 (Finance) The operating and managing expenses of the veterinary hall shall be covered by the following finances:

(1) Subsidies granted with the budget of the main church shall be granted as subsidies.

(2) Voluntary audit money of the use of the facilities and the organization;

(3) Other matters.

(5) During the period from December 2, 2001 to November 2002, the number of members of the instant veterinary hall is 151,093 members who belong to the Plaintiff church, and 12,702 members who belong to the Plaintiff church, and between December 2002 and November 2003, the number of members of the Plaintiff church is 128,303 members of the Plaintiff church, and the number of members of the other church is 14,328 members who belong to the Plaintiff church, and the outside is 14,328 members who belong to the Plaintiff church, and the outside is 14,328 members use the number of members of the instant religious hall at the ratio of 1/10 of the number of members

(6) The expenses for the use of the swimming hall of this case are free of charge for the use of the group and the meal expenses for the believers belonging to the Plaintiff church. In the case of the believers belonging to the Plaintiff church, 10,000 won for the personal use of the believers belonging to the Plaintiff church and for the outside, and 2,500 won for the meal expenses for the Plaintiff church, and 2,500 won for the meal expenses for the Plaintiff. However, the Plaintiff received the audit contribution voluntarily undertaken other than the Plaintiff and appropriated it for the revenues

(7) The sum of the revenues between December 2001 and November 2002, the sum of the revenues between 737,346,368 won, and the sum of the expenditures amounting to 872,593,360 won, 135,246,92 won during the above period, and the sum of the revenues between December 2002 and November 2003, the sum of the revenues amounting to 945,085,769 won, and the sum of the expenditures amounting to 1,098,845,361 won during the above period.

(8) Of the sum of the revenues between December 2001 and November 2002, the amount of KRW 737,346,368 as management expenses is KRW 64,130,00,00, and the sum of the revenues between December 2002 and November 2003, the amount of KRW 945,085,769 as management expenses is KRW 118,80,000, the portion of the management expenses paid out of the total revenues is about KRW 10%, and the remainder of the revenues is appropriated from the audit contribution and the subsidies of the Plaintiff church party.

(d) Markets:

(1) Whether a non-profit entrepreneur under Article 107 subparagraph 1 of the former Local Tax Act uses real estate for business or for profit-making business should be objectively determined based on the actual use relationship of the non-profit entrepreneur in consideration of the business purpose and purpose of acquisition (see Supreme Court Decision 2000Du3238, Apr. 26, 2002, etc.).

(2) As to the instant case, the following facts are acknowledged as follows: ① the Plaintiff newly constructed and managed the instant swimming hall for the Plaintiff’s believers because of the lack of the original swimming hall facilities for the Plaintiff’s believers; ② the Plaintiff’s construction of the instant swimming hall and opened the use of the instant swimming hall to the general class members upon the request of the other church’s believers; ② the Plaintiff’s provision of space such as the Plaintiff’s church believers, worship, and shelter to the general class members is not attributable to the economic motive and purpose, not due to the Plaintiff’s establishment of the swimming hall and the provision of the said space to the general class members as going out of the daily life, but due to the religious motive and purpose of widely missioning the religious activities; ③ the portion of the number of the Plaintiff’s external members out of the number of the instant swimming halls to the Plaintiff’s establishment of the instant swimming hall is not likely to be attributable to the Defendant’s voluntary establishment of the instant apartment hall or its activities, and thus, the Plaintiff’s voluntary establishment of the instant set of the subsidy hall is not considered to be unlawful.

3. Conclusion

Therefore, the plaintiff's claim seeking revocation on the premise that the disposition of this case is unlawful is justified and it is so decided as per Disposition.

Judges Cho Yong-ok (Presiding Judge)