The burden of proving the rationality and feasibility of the estimated taxation

In a case where there is a dispute over the legitimacy and validity of the estimated taxation, the burden of proof is imposed on the tax authority for the rationality and validity of the estimated taxation. If the tax authority failed to prove that the method and content of the estimation are reasonable and reasonable in a lawsuit, the court is bound to revoke the entire taxation imposed by the tax authority on the ground that it was illegal, and the court is not obliged to actively find a reasonable and reasonable method of estimation and calculate the reasonable tax amount.

Article 120 of the Income Tax Act, Article 21 of the Value-Added Tax Act

Plaintiff

Head of the tax office

Daegu High Court Decision 84Gu65 delivered on December 21, 1984

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal by the defendant litigant are examined.

1. According to the reasoning of the lower judgment, the lower court determined that: (a) the Plaintiff paid KRW 9,761,840 of the extraction fees with permission from the head of the Gun for the extraction of aggregate; (b) the Plaintiff collected aggregate from ( Address omitted) in the border line from March 12, 1981 to April 18, 198; and (c) sold the entire quantity of aggregate to the consumers at the above extraction site after collecting aggregate; (d) the Defendant did not make a final return on the supply of aggregate as above; and (e) there was no tax invoice, account books, or other evidence necessary for calculating the tax base; and (e) the Plaintiff’s estimated value of aggregate from March 12, 1981 to 10,871, 140 of the total amount of value-added tax calculated by applying the average value-added tax rate of KRW 10,304,489 of the total amount of value-added tax, which is the tax base for the aggregate extraction site; and (e) the Plaintiff’s annual average value-added value of KRW 160,506.

2. If there are reasons under Article 21 (2) 1 of the Value-Added Tax Act and Article 120 (1) of the Income Tax Act and Article 169 (1) of the Enforcement Decree of the same Act, the Government may make a decision of correction under the conditions as prescribed by the Presidential Decree, but the method and content of the estimation must be reasonable and reasonable to reflect the actual amount close to the truth. If there is a dispute over the legitimacy and validity of the estimation, the burden of proof for its rationality and validity should be imposed on the defendant who is the tax authority. Thus, if the defendant fails to prove that his estimation method and content are reasonable and reasonable in the lawsuit (excluding the case where it is presented and proved a separate estimation method that are reasonable and reasonable, and it is not inevitable for the court to revoke the entire estimation, and the court shall find the estimation method that is reasonable and reasonable, and thus, it does not impose the duty of the defendant to calculate the legitimate tax amount on the plaintiff. Accordingly, the court below's decision in the above purport is not erroneous in the misapprehension of legal principles or misapprehension of legal principles.

3. Therefore, the appeal is dismissed, and the 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 Jong-soo (Presiding Justice)