The meaning of "a comprehensive succession to all rights and obligations relating to business" under Article 22 of the Enforcement Decree of the Framework Act on National Taxes.

Article 41 of the Framework Act on National Taxes and Article 22 of the Enforcement Decree of the same Act comprehensively succeeds to all rights and obligations concerning the business as referred to in Article 41 of the same Act. The transferee should succeed to the legal status to the same extent as that of the transferor by taking over all rights and obligations, such as business rights and obligations, as well as all rights and obligations concerning the business from the transferor

Article 41 of the Framework Act on National Taxes, Article 22 of Enforcement Decree of the Framework Act on National Taxes

Supreme Court Decision 82Nu311 Decided April 24, 1984

[Defendant-Appellant] Shin Dong-dong, Inc., Counsel for defendant-appellant

Head of Suwon Tax Office

Seoul High Court Decision 83Gu1060 delivered on October 25, 1984

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. According to the reasoning of the judgment below, the court below held that the plaintiff could not be deemed as the business transferee of the above non-party company under Article 41 of the Framework Act on National Taxes, on the ground that the plaintiff purchased only the factory site, buildings, and machinery and equipment from the Dongyang Construction Co., Ltd. on August 4, 1981, and that there was no comprehensive acquisition of the human rights and duties of the above non-party company.

2. In light of the records, the above fact-finding process of the court below is just and there is no error of law such as misconception of facts or incomplete hearing in violation of the rules of evidence, such as theory of lawsuit, and furthermore, according to Article 41 and Article 22 of the Enforcement Decree of the National Tax Basic Act, the transferee of a business refers to a person who comprehensively succeeds to all the rights and duties (except for accounts receivable and accounts payable) concerning the business of each workplace. The comprehensive succession of all the rights and duties referred to in this context must be made from the transferor to the same extent as that of the transferor by taking over all the rights and duties related to the business as well as the business facilities of the transferor, and all the rights and obligations related to the business as well as the rights and obligations related to the business (see Supreme Court Decision 82Nu311 delivered on April 24, 1984). The court below's purport is just and there is no error in the misapprehension of legal principles as to Article 41 of the Framework Act on National Taxes, such as theory of lawsuit.

3. Therefore, the appeal shall be dismissed, and all costs of appeal shall be assessed against the losing party. It is so decided as per Disposition by the assent of all participating judges.

Justices Kim Young-ju (Presiding Justice)