The time when the income of patent attorneys for cases requested by foreigners is finalized.

In order to ensure that income which is subject to income tax has been realized, it is not necessary until the income has been realized, and the right to generate income is considerably mature, final and conclusive, and specifically, the right to generate income is mature, final and conclusive, and the right to generate income is determined in consideration of the specific nature of each individual right and its contents, the law, and various actual conditions. Thus, when a patent attorney receives a letter of change stating expenses and the amount of remuneration from a foreign client and receives a promise to pay all or part of the amount from a foreign client or actually transfers it, he/she shall be deemed to have become mature and final and conclusive so far as it is considerably high in the possibility of realizing the right to generate income.

Articles 28(1), 28(3), 51(1), and 51(3) of the Income Tax Act, Article 57(4)7 of the Enforcement Decree of the Income Tax Act

Supreme Court Decision 86Nu357 delivered on May 26, 1987 (Gong1987, 1083) 92Nu4048 delivered on July 14, 1992 (Gong1992, 2456) 91Nu8180 delivered on June 22, 1993 (Gong193Ha, 2172) 93Nu4649 delivered on December 24, 1993 (Gong194Sang, 395)

[Judgment of the court below]

Samsung Head of Samsung Tax Office

Seoul High Court Decision 93Gu5293 delivered on March 2, 1994

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

We examine the grounds of appeal by the Plaintiff’s attorney.

1. According to the reasoning of the judgment below, the plaintiff, who is engaged in the business of patent attorney and has been delegated with the business of patent, trademark, etc. (hereinafter referred to as "patents") in Korea by foreign clients. The patent application procedure is conducted through various stages, such as application, request for examination, examination, publication of application, patent ruling, patent registration, etc. The patent attorney's fees for vicarious performance of patent registration affairs are paid in advance between the client and the patent attorney in domestic cases, and it is customary to receive a separate contingent fee at the time of patent registration. However, unlike domestic cases, in case of foreign cases, the plaintiff is unable to receive a separate contingent fee from the client at each stage, such as submitting documents to the Korean Intellectual Property Office for fact-finding and submitting documents to which the patent attorney requested the application from the foreign client, and then, the court below's determination that the expenses and the fees of the patent attorney are not paid until the date of application and the fees of the patent attorney are paid to the foreign client, and it is not justified in the case of transfer of the amount to the foreign client or the agreed amount to be returned.

2. In order to ensure that income subject to income tax has been realized, it is not required until the income has been realized, and it is sufficient to determine whether the right to generate income is considerably mature, final and conclusive, and in detail, the right to generate income is mature and finalized with a certain fact cannot be uniformly determined in light of the specific nature and contents of individual rights, the law, and various actual conditions (see, e.g., Supreme Court Decision 86Nu357, May 26, 1987; 92Nu4048, Jul. 14, 1992).

If the facts are as determined by the court below in this case, the plaintiff sent a tea table stating the expenses and the amount of remuneration to a foreign client and it shall be deemed that each time when the plaintiff is promised to pay the whole or part of the amount of the expenses and the amount of the remuneration from the foreign client or actually transferred it to the foreign client is considerably mature and confirmed in the possibility of realizing the income. Therefore, the judgment of the court below to the same purport is just, and it shall not be deemed that there was an error of law by erroneous application of statutory interpretation and application like the theory of the court below. The judgment of the party member is related to the case different from the case of this case, and thus,

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 Justices.

Justices Shin Sung-sung (Presiding Justice)