Cho High-2017-Tgu Office-2363 (Law No. 29, 2017)

Collection of the amount of value-added tax unpaid by a general taxi transport business entity is legitimate.

It is reasonable to additionally collect value-added tax reduced by a general taxi transport business entity for the amount that has not been paid by the payment period.

Tax reduction of value-added tax for general taxi transport business operators under Article 106-7 of the Restriction of Special Taxation Act.

Daegu District Court 2017Guhap24242

○○○ Incorporated Company

○○ Head of tax office

May 9, 2018

June 15, 2018

1. The plaintiff's claim is dismissed.

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

Cheong-gu Office

The Defendant’s disposition of imposition of value-added tax for the second period of February 1, 2015 imposed on the Plaintiff on February 1, 2017 is revoked.

1. Details of the disposition;

A. The Plaintiff is a business operator who has run a general taxi transport business under the Passenger Transport Service Act and the Enforcement Decree thereof (hereinafter referred to as “general taxi transport business operator”) under the trade name of ○ Taxi Co., Ltd. from November 10, 1978 to January 19, 2016, from 3 ○○-ro, Daegu-gu ○○○-ro.

B. On January 23, 2016, pursuant to Article 106-7(1) of the former Restriction of Special Taxation Act (amended by Act No. 12835, Dec. 23, 2014; hereinafter the same shall apply), the Plaintiff reduced the amount of value-added tax paid from KRW 109,735,97 equivalent to 95/100 thereof from KRW 104,249,178 [24,641,02 from July 1, 2015 to September 30, 2015) + the amount of value-added tax reported (from October 1, 2015 to December 31, 2015) to less than KRW 104,249,178, equivalent to 95/100 thereof].

C. On May 3, 2016, the Daegu Metropolitan City Mayor notified the Defendant that the Plaintiff did not pay KRW 5,486,79 equivalent to 5/100 of the reduced tax amount to the institution designated by the Minister of Land, Infrastructure and Transport (hereinafter referred to as the “institution managing financial resources to reduce the number of taxi drivers”) pursuant to Article 106-7(2) of the former Restriction of Special Taxation Act, the Plaintiff did not pay KRW 98,762,379 (hereinafter referred to as the “institution managing financial resources to reduce the number of taxi drivers”) equivalent to 90/100 of the amount of value-added tax to the Plaintiff’s employees.

D. Accordingly, the Defendant confirmed the facts against the Plaintiff. As a result, from July 2015 to February 25, 2016, the Plaintiff confirmed that the Plaintiff paid KRW 59,879,351 out of the total amount of KRW 104,249,178 to the general taxi drivers (including the management agency of the financial resources for reducing the number of taxi trucks; hereinafter the same shall apply), but did not pay the remainder of KRW 44,369,827 (hereinafter referred to as “occupant tax amount”).

E. Accordingly, on February 1, 2017, the Defendant issued a correction and notification of the Plaintiff on February 1, 2017, on the ground that the Plaintiff did not pay the key amount to general taxi drivers in cash within one month from the end of the payment deadline for the final return of value-added tax that has been reduced as prescribed by the Minister of Land, Infrastructure and Transport (hereinafter “payment period”) pursuant to Article 106-7(2) and (3) of the former Restriction of Special Taxation Act, on the ground that the Plaintiff did not pay the amount to the Plaintiff in cash within February 25, 2016 (i.e., value-added tax for 2015 (i) KRW 66,24,150 (i.e., the principal tax + KRW 44,369,827 + KRW 17,747,930 + penalty tax for unfaithful return + KRW 4,1

F. The Plaintiff dissatisfied with the instant disposition and filed an appeal with the Tax Tribunal on April 20, 2017, but the appeal was dismissed on August 29, 2017.

Facts that there is no dispute over recognition, Gap's No. 1, 4, 5, Eul's No. 1 and 2 (including virtual numbers), the purport of the whole pleadings.

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

1) After the notification of the Daegu Metropolitan City Mayor, the Plaintiff paid the full amount of reduction to ordinary taxi drivers from December 21, 2016 to December 23, 2016, which was made by the Daegu Metropolitan City Mayor. Furthermore, in light of the legislative intent of Article 106-7 of the former Restriction of Special Taxation Act, even if a general taxi transport business entity was unable to pay the outstanding amount to ordinary taxi drivers within the payment period, as in the case of the Plaintiff, if the Defendant paid the entire amount of the unpaid amount after the notification was made by the Daegu Metropolitan City Mayor, then the Defendant cannot additionally collect the outstanding amount from the Plaintiff.

2) In addition, the following justifiable grounds exist when the Plaintiff failed to pay the key amount to ordinary taxi drivers within the payment period.

① On January 19, 2016, the Plaintiff experienced management difficulties due to frequent accidents, labor-management conflicts, economic depression, etc. before closing the general taxi transport business.

② Some ordinary taxi drivers filed a claim for restitution of unjust enrichment and a lawsuit claiming wages against the Plaintiff in sequential order, and rejected part of the receipt of the disputed tax amount. Accordingly, the Plaintiff was unable to pay it inevitably.

③ Furthermore, there were circumstances in which the Plaintiff was difficult to make a practical payment of the dispute amount to the general taxi drivers, given that all the general taxi drivers retired. In such a situation, the Plaintiff was difficult to determine the general taxi drivers who are obligated to pay the dispute amount, and it was impossible to accurately calculate the amount paid.

B. Relevant statutes

The entries in the attached Table-related statutes are as follows.

C. Determination

1) Relevant legal principles

In light of the principle of no taxation without law, the elements for taxation, non-taxation, or tax exemption, and the interpretation of tax laws shall be interpreted in accordance with the text of the law, barring any special circumstance, and shall not be extensively interpreted or analogically interpreted without reasonable grounds. In particular, the strict interpretation of the provision that is clearly considered as a preferential provision among the requirements for reduction and exemption accords with the principle of fair taxation (see, e.g., Supreme Court Decisions 2002Du9537, Jan. 24, 2003; 2008Du7830, Oct. 23, 2008).

2) The process of enacting and amending the relevant laws and regulations

A) Implementation of the system to reduce the amount of value-added tax for general taxi transport business operators (hereinafter referred to as the "special provisions of this case").

(1) Article 100-2 of the former Regulation of Tax Reduction and Exemption Act amended by Act No. 4952 on August 4, 1995 introduced a system that reduces 50/100 of the amount of the value-added tax payable to general taxi transport business operators under the Automobile Transport Business Act, who are liable to pay value-added tax. This is to support the increase of wages paid to general taxi transport business operators to the extent that the amount of the reduced value-added tax payable is the amount of the value-added tax payable, the improvement

(2) However, unlike the original legislative intent, as a general taxi transport business entity had problems such as appropriation of the amount of value-added tax reduced to the welfare expenses that he had previously borne, Article 106-4(2) of the former Restriction of Special Taxation Act amended by Act No. 7322 on December 31, 2004 provided that all of the amount of value-added tax reduced shall be used for improving the treatment and welfare of general taxi transport business entities as prescribed by the Minister of Construction

(3) In addition, Article 106-4(3) of the former Restriction of Special Taxation Act amended by Act No. 8146 of Dec. 30, 2006 provides that if a general taxi transport business entity fails to use the reduced amount of value-added tax for the improvement of treatment and welfare of general taxi drivers within six months from the expiration date of the return deadline for the reduced amount of value-added tax, it shall not have any reason to hold the reduced amount of tax. Thus, the Commissioner of the National Tax Service or the head of the tax office having jurisdiction over general taxi transport business entities (hereinafter referred to as the "head of the tax office having jurisdiction")

(4) Furthermore, according to Article 106-7(2) and (3) of the former Restriction of Special Taxation Act (amended by Act No. 10285, May 14, 2010), a general taxi transport business entity shall pay the full amount of value-added tax reduced in cash to a general taxi transport business entity within the payment period as prescribed by the Minister of Land, Transport and Maritime Affairs. In such cases, he/she shall notify the general taxi transport business entity that the cash paid is the amount of value-added tax reduced.

B) Details of the former Restriction of Special Taxation Act applied at the time of the instant disposition

(1) According to Article 106-7(1), (2), and (3) of the former Restriction of Special Taxation Act, ① 95/100 of the amount of value-added tax payable for a general taxi transport business entity shall be reduced by the taxable period ending on or before December 31, 2015 (paragraph (1)); ② A general taxi transport business entity shall pay to a general taxi transport business entity an amount equivalent to 90/100 of the amount of value-added tax payable out of the amount of tax to be reduced under paragraph (1) in cash within the payment period as prescribed by the Minister of Land, Infrastructure and Transport. In such cases, a general taxi transport business entity shall notify the general taxi transport business entity that the amount of value-added tax is the amount of tax to be reduced (Paragraph (2)); ③ A general taxi transport business entity shall pay an amount equivalent to 5/100 of the amount of value-added tax payable out of the amount of tax to be reduced under paragraph (1) to use it as compensation for reducing the number

(2) In addition, pursuant to Article 106-7(5) and (6) of the former Restriction of Special Taxation Act, the Minister of Land, Infrastructure and Transport shall verify whether a general taxi transport business entity has paid the amount of tax reduced pursuant to paragraphs (2) and (3) during the period of payment, and shall notify the Commissioner of the National Tax Service or the head of the competent tax office of the result thereof (hereinafter referred to as “Unpaid notification”) within three months from the expiration date of the period of payment. In such cases, he/she shall also notify the general taxi transport business entity subject to the notification of the amount of tax unpaid, and the Commissioner of the National Tax Service or

Where a general taxi transport business entity pays the amount of reduced tax not paid pursuant to paragraphs (2) and (3) (hereinafter referred to as "amount of unpaid reduced tax") by the date of notification of unpaid tax amount, the amount equivalent to the amount of reduced tax (=amount equivalent to the amount of unpaid reduced tax 】 the period from the day following the end of the due date of the return and payment of value-added tax reduced pursuant to paragraph (1) 】 3/10,000 x the amount of additional tax equivalent to 20/100

(b) Where a general taxi transport business entity fails to pay the unpaid tax reduction by the date of notification of the unpaid tax reduction, the amount equivalent to the amount of unpaid tax reduction and the amount equivalent to the interest on such tax reduction [amount equivalent to the unpaid tax reduction x the period from the date following the expiration date of the due date of notification of the return and payment of value-added tax reduced pursuant to paragraph (1) x 3/10,000], and the amount equivalent

3) Whether the Defendant’s collection of the key tax amount, etc. from the Plaintiff is legitimate

A) Facts of recognition

In the absence of dispute between the parties or in full view of the respective descriptions of Gap evidence Nos. 2, 3, 9, 10 (including additional numbers) and the whole purport of the pleadings, the following facts are recognized:

1. The Plaintiff’s trade union shall pay 45,310,000 won in the balance of the value-added tax reduction for the second half year in 2015. The Plaintiff’s trade union shall pay the said amount to employees at the time.

2. The list of employees to be paid and the amount of payment shall be as shown in attached Form;

3. An employee shall receive the attached amount and withdraw the attached amount for each individual from the Daegu District Court (No. 2016Gadan117091).

(1) On January 2, 2016, the Plaintiff closed his/her general taxi transport business and currently runs real estate rental business.

(2) On September 9, 2015, the 51 person, who is a general taxi driver, filed a lawsuit against the Plaintiff seeking restitution of unjust enrichment and claiming wages, alleging that the Plaintiff paid the mitigated tax amount to them, including the minimum wage, on a three-dimensional basis, on September 31, 2015, and July 15, 2016, the Plaintiff failed to receive the amount of actual wages ( Daegu District Court Decision 2015Da35789, 2015Da35789, 2015da129400, 2016da117091).

(3) Until February 25, 2016, the Plaintiff paid KRW 59,879,351 out of the amount of reduced tax to general taxi drivers as remuneration, etc. However, the key tax amount thereafter was not paid. In addition, on December 21, 2016, the Plaintiff agreed with the taxi trade union of the taxi company and certified it as a deed signed by private persons.

(4) In accordance with the above agreement, the Plaintiff paid KRW 45,310,000 to 61 regular taxi drivers from December 21, 2016 to December 23 of the same month.

B) Specific determination

In full view of the aforementioned facts in '1. The circumstances leading up to the disposition and '2.c. (a) recognition', the Plaintiff did not pay the key amount to ordinary taxi drivers until February 25, 2016, which was within one month from January 25, 2016, which was the end of the payment deadline for the final return of the reduced value-added tax. Moreover, the Plaintiff did not pay the key amount to ordinary taxi drivers until May 3, 2016, which was notified to the Defendant by the Daegu Metropolitan City Mayor. Moreover, considering the following circumstances, considering the language and content, structure, and form of the relevant statute, the legislative purport of the relevant special provision, and the legislative intent of the relevant special provision, and the developments leading up to the enactment and amendment of the relevant provision, even if the Plaintiff paid the key amount to ordinary taxi drivers prior to the Defendant’s disposition of additional collection, it cannot be interpreted that the sum of the key tax amount, the amount equivalent to the interest corresponding thereto, and the additional tax amount equivalent to the amount equivalent to the Plaintiff’s 106.

(1) Legislative intent of the special provisions of this case and the process of enacting and amending the relevant provisions

(A) The legislative purpose of the instant special provision is to provide general taxi transport business entities with benefits from the reduction of the amount of value-added tax payable, instead of providing general taxi transport business entities with such benefits, to promote the improvement of treatment and welfare of general taxi drivers with the financial resources.

(B) The former Restriction of Special Taxation Act has been enacted and amended several times in order to enhance the effectiveness of the special provisions of the instant case, and the parts of the changes specifically changed in the process of the enactment and amendment are summarized as follows.

[Report] Comparison before and after the amendment of the former Restriction of Special Taxation Act

(C) In light of the legislative purport of the special provisions of this case and the legislative process of the enactment and amendment of the relevant provisions, the amended provisions of Article 106-7 of the Restriction of Special Taxation Act do not intend to individually provide financial benefits to general taxi transport business operators through the reduction of the amount of value-added tax, but rather provide cash payments to general taxi transport business operators as soon as possible within the payment period (one month after the expiration of the payment period for the final return and payment of value-added tax that has been reduced), thereby ensuring that they can be used ultimately for improving the treatment and welfare of general taxi drivers. Furthermore, the provisions of Article 106-7(6) of the Restriction of Special Taxation Act have strengthened the procedure for securing the effectiveness of the special provisions of this case by imposing penalty tax equivalent to 40/100 of the amount equivalent to the amount equivalent to the amount equivalent to 3/100 of the amount equivalent to the amount equivalent to the amount equivalent to 40/100 of the amount equivalent to the amount due to the amount due to the return and payment period of value-added tax.

(2) Interpretation of Article 106-7(6) of the former Restriction of Special Taxation Act

(A) As seen earlier, Article 106-7(6) of the former Restriction of Special Taxation Act separates the scope of the amount additionally collected into two cases as of the date of notification of non-payment.

(B) In other words, where the Minister of Land, Infrastructure and Transport confirms that a general taxi transport business entity has paid the unpaid amount of tax within the payment period and notifies the Commissioner of the National Tax Service or the head of the competent tax office of the result thereof (the date of notification of arrears) within three months from the end of the payment period, the unpaid amount of tax shall not be additionally collected, and only the sum of the amount equivalent to the amount equivalent to the accrued amount of tax and the amount equivalent to 20/100 of the amount equivalent to the unpaid amount of tax shall be additionally collected (the amount equivalent to the unpaid amount of tax x the period from the day following the end of the payment period for the return and payment of value-added tax pursuant to paragraph (1) to the payment date x 3/100] and the amount equivalent to 40/100 of the amount equivalent to the unpaid amount of tax shall be additionally collected.

(C) In light of the language, content, structure, and form of the aforementioned relevant provision, Article 106-7(6) of the former Restriction of Special Taxation Act clearly states the legislative intent of imposing a strong sanction against a general taxi transport business entity in faith by collecting the unpaid amount even if a general taxi transport business entity did not pay the unpaid amount until the date of notification of payment, the amount equivalent to the unpaid amount of tax shall be excluded. However, if a general taxi transport business entity paid the unpaid amount of tax to a general taxi transport business entity by the date of notification of payment of the unpaid amount of tax, even if the unpaid amount of tax has not been paid after the date of notification of payment, it shall be interpreted that the aforementioned amount of tax should be additionally collected. Furthermore, such interpretation conforms to the basic principles of the tax special provision that additionally collects and redeems the amount of tax reduced or exempted if the general taxi transport business entity fails to meet the requirements for tax exemption after the initial notification of tax exemption. If it is interpreted by analogy or expanding the amount of tax exemption from the collection by the Commissioner of the National Tax Service or the head of the competent tax office, it would go against the principle of no taxation without law.

(3) Whether the Plaintiff has justifiable grounds

On the other hand, the Plaintiff asserts that there is a justifiable ground for failure to pay the key amount to ordinary taxi drivers within the payment period, since the Plaintiff failed to pay the key amount due to difficulties in management, intentional refusal of lawsuit and intentional receipt by ordinary taxi drivers, and difficulties in determining the amount of tax to be paid, etc. However, it is difficult to accept the Plaintiff’s assertion on the following grounds.

① Benefits from the reduction of the amount of value-added tax is merely a reduction in the tax policy that the Plaintiff is liable to pay. Accordingly, the benefit therefrom is of the nature that the Plaintiff, who is a general taxi transport business entity, will be attributed to the general taxi transport business entity, not the Plaintiff. Therefore, the assertion that there was managerial difficulties due to frequent accidents, labor-management conflicts, economic depression, etc. is difficult to deem that the allegation that there was managerial difficulties, such as the lack of additional collection of the amount of tax is a justifiable reason

② The Plaintiff paid the reduced tax amount to ordinary taxi drivers in the form of salary, etc., and each of their respective account numbers were well known. Moreover, the Plaintiff voluntarily reported and paid the reduced tax amount of value-added tax for the second term of 2015 to the Defendant, and specifically known the amount. If the Plaintiff appears to have secured all the personnel data (name, address, contact address, etc.) of ordinary taxi drivers employed by himself/herself while continuing to operate the business at the same place, the Plaintiff’s assertion that it was difficult for them to pay the amount of tax actually at issue due to the collective retirement of ordinary taxi drivers or that it was difficult for them to calculate the amount of tax paid is difficult.

③ From January 25, 2016, which was the end of the due date for the final return of the reduced value-added tax, the Plaintiff is difficult to find out circumstances to deem that the Daegu Metropolitan City Mayor faithfully made efforts to pay the key tax amount to ordinary taxi drivers, even though three or more months have elapsed since the date of notification of the unpaid tax payment, which was the end of the due date for the final return of the reduced tax payment period. Accordingly, the Plaintiff asserted that, as a public official belonging to the Defendant, ○○○ who made an individual repayment deposit to ordinary taxi drivers, the Plaintiff could not be exempted from the Defendant’s disposition of additional collection. However, according to the evidence evidence No. 11, the Plaintiff asked the public official belonging to the Defendant on June 24, 2016, when resolving the key tax amount with the deposit system, and the public official in charge was in accordance with the procedure set forth in Article 106-7 of the former Restriction of Special Taxation Act. Therefore, the Plaintiff did not have any negligence on the part of the Defendant for the issue of the reply taxi drivers within the payment period.

3. Conclusion

Therefore, the plaintiff's claim is without merit, and it is so decided as per Disposition.

Relevant statutes

director of the former Restriction of Special Taxation Act (amended by Act No. 12853, Dec. 23, 2014)

Article 106-7 (Reduction of Value-Added Tax Amount for General Taxi Drivers)

(1) 95/100 of the amount of value-added tax payable shall be reduced for a general taxi transport business entity under the Passenger Transport Service Act and Enforcement Decree of the same Act (hereafter in this Article, referred to as "general taxi transport business entity") by the taxable period ending on or before December 31, 2015.

(2) A general taxi transport business entity shall pay in cash an amount equivalent to 90/100 of the amount of value-added tax paid out of the amount of tax to be reduced under paragraph (1) to a general taxi driver under the Passenger Transport Service Act (hereafter referred to as "general taxi driver" in this Article) within one month from the end of the payment deadline for the final return of value-added tax reduced as prescribed by the Minister of Land, Infrastructure and Transport (hereafter referred to as "payment period" in this Article). In such cases, the general taxi transport business entity

(3) A general taxi transport business entity shall pay an amount equivalent to 5/100 of the amount of value-added tax payable to an institution designated by the Minister of Land, Infrastructure and Transport within the payment period (hereafter in this Article, referred to as the "management institution of financial resources for compensation for reducing the number of taxis") among the amount of reduced tax under paragraph (1)

(4) A general taxi transport business entity shall submit a detailed statement of the reduced tax amount under paragraph (1) to a general taxi transport business entity pursuant to paragraph (2) within ten days from the end of the payment period, to the Minister of Land, Infrastructure and Transport and the head

(5) The Minister of Land, Infrastructure and Transport shall verify whether a general taxi transport business entity has paid an amount of tax reduced pursuant to paragraph (1) pursuant to paragraphs (2) and (3) during a payment period, and notify the results thereof to the Commissioner of the National Tax Service or the head of a tax office having jurisdiction over a general taxi transport business entity (hereafter in this Article, referred to as "not-paid notification") within three months from the expiration date of the payment period.

(6) The Commissioner of the National Tax Service or the head of a tax office having jurisdiction over a general taxi transport business entity in receipt of notification of non-payment under paragraph (5) shall collect the amount calculated as follows:

1. Where a general taxi transport business entity pays the amount of reduced tax not paid pursuant to paragraphs (2) and (3) (hereafter referred to as "amount of unpaid reduced tax" in this paragraph) by the date on which the notice of non-payment is served: Total of the following amounts:

(a) Amount equivalent to the interest of the amount equivalent to the reduced tax calculated by the following formula:

Amount equivalent to the interest = Amount equivalent to unpaid reduced tax 】 Period from the day following the end of the deadline for filing a return and payment of value-added tax reduced pursuant to paragraph (1) to the payment date 】

(b) Additional tax equivalent to 20/100 of the amount equivalent to the unpaid tax amount reduced or exempted;

2. Where a general taxi transport business entity fails to pay the unpaid tax reduction by the date of notification of payment: The aggregate of the amounts calculated in accordance with the following items:

(a) An amount equivalent to the unpaid tax amount;

(b) Amount equivalent to the interest calculated by the following formula:

Amount equivalent to the interest = Amount equivalent to the amount of unpaid reduced tax ¡¿ Period from the day following the end of the deadline for filing a return and payment of value-added tax reduced pursuant to paragraph (1 to the notice of the amount of additional tax

(c) Additional tax equivalent to 40/100 of the amount equivalent to the unpaid tax amount reduced or exempted;

/ former Restriction of Special Taxation Act (amended by Act No. 10285, May 14, 2010)

Article 106-7 (Reduction of Value-Added Tax Amount for General Taxi Drivers)

(1) 90/100 of the amount of value-added tax payable shall be reduced for a general taxi transport business entity under the Passenger Transport Service Act (hereafter in this Article, referred to as "general taxi transport business entity") up to the taxable period ending on or before December 31, 2011.

(2) A general taxi transport business entity shall pay the full amount of the reduced tax under paragraph (1) to a general taxi transport business entity under the Passenger Transport Service Act (hereafter referred to as "general taxi transport business entity" in this Article) within one month from the end of the payment deadline for the final return of value-added tax, as prescribed by the Minister of Land, Transport and Maritime Affairs. In such cases, the general taxi transport business entity shall notify the general

(3) Where the Minister of Land, Transport and Maritime Affairs confirms that a general taxi transport business entity has failed to pay the amount reduced pursuant to paragraph (2) within one month from the end of the payment deadline for the final return of value-added tax that has been reduced pursuant to paragraph (1), he/she shall immediately notify the Commissioner of the National Tax Service or the head of the competent tax office having jurisdiction over the general

1. The amount equivalent to the amount of reduced tax not paid to general taxi drivers;

2. Amount equivalent to the interest on the amount equivalent to the reduced tax amount calculated by the following formula:

The amount equivalent to the interest = The amount equivalent to the abated tax amount under subparagraph 1 ¡¿ Period from the day following the end of a deadline for filing a return and payment of value-added tax reduced pursuant to paragraph (1) to the date of notifying the amount of additional tax ¡¿

3. The additional tax amount equivalent to 20/100 of the amount equivalent to the abated tax amount under subparagraph 1.

director of the former Restriction of Special Taxation Act (amended by Act No. 8146 of Dec. 30, 2006)

Article 106-4 (Reduction of Value-Added Tax for General Taxi Business Operators)

(1) 50/100 of the amount of the payable value-added tax shall be reduced for general taxi transport business entities under the Passenger Transport Service Act by the taxable period ending on or before December 31, 2008.

(2) The reduced tax amount under paragraph (1) shall be used for improving the treatment and welfare of general taxi drivers under the Passenger Transport Service Act as determined by the Minister of Construction and Transportation.

(3) Where the Minister of Construction and Transportation confirms that a general taxi transport business operator under the Passenger Transport Service Act has failed to use the amount of tax reduced pursuant to paragraph (1) within six months from the expiration date of the report and payment period of value-added tax, he shall immediately notify the Commissioner of the National Tax Service or the head of the competent tax office having jurisdiction over the general taxi transport business, and the notified Commissioner of the National Tax Service or

1. Amount equivalent to the reduced tax amount not used for improving the treatment and welfare of general taxi drivers provided for in the Passenger Transport Service Act;

2. Amount equivalent to the interest on the reduced tax amount calculated by the following formula:

Amount equivalent to the interest = Amount equivalent to the reduced tax amount under subparagraph 1 】 Period from the date following the end of the deadline for filing a return and payment of value-added tax reduced pursuant to paragraph (1) to the date of notifying the additional tax amount 】

3. Additional tax amount corresponding to 20/100 of the amount equivalent to the reduced tax amount referred to in subparagraph 1.

director of the former Restriction of Special Taxation Act (amended by Act No. 7322, Dec. 31, 2004)

Article 106-4 (Reduction of Value-Added Tax for General Taxi Business Operators)

(1) 50/100 of the payable amount of the value-added tax shall be reduced for general taxi transport business operators under the Passenger Transport Service Act up to the taxable period that ends on or before December 31, 2006.

(2) The reduced tax amount under paragraph (1) shall be used for improving the treatment and welfare of general taxi drivers under the Passenger Transport Service Act as determined by the Minister of Construction and Transportation.

(1) The former Regulation of Tax Reduction and Exemption Act (amended by Act No. 4952, Aug. 4, 1995)

Article 100-2 (Reduction of Tax Amount to be Paid)

50/100 of the payable amount of the value-added tax shall be reduced for general taxi transport business operators under the Automobile Transport Business Act.

/ Value-Added Tax Act

Article 49 (Final Tax Return and Payment)

(1) A business operator shall report to the head of a tax office having jurisdiction over the place for tax payment, as prescribed by Presidential Decree, within 25 days (the 25th day of the month following the month in which the date of closedown pursuant to Article 5 (3) falls, in cases of closure of business) after the