Busan District Court 2013Guhap447 (Law No. 16, 2014)

I see that the appraisal value of one appraisal institution is "the market value in an objective and reasonable manner";

(As in the first instance judgment), even if the appraisal by a reliable appraisal agency is assessed, it can be seen as the market price if it was conducted by objective and reasonable means of evaluating the market price.

Article 60 of the Inheritance Tax and Gift Tax Act

2014Nu21240 Revocation of disposition of imposing capital gains tax

leAA

○○ Head of tax office

Busan District Court Decision 2013Guhap447 Decided May 16, 2014

December 5, 2014

December 19, 2014

1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

1. Purport of claim

The disposition taken by the Defendant against the Plaintiff on January 8, 2013 on the imposition of the capital gains tax of 2012 shall be revoked.

2. Purport of appeal

The judgment of the first instance is revoked. The plaintiff's claim is dismissed.

1. Quotation of judgment of the first instance;

The reasoning for this Court’s explanation is as stated in the reasoning of the judgment of the first instance except for the addition of the following judgments. Thus, this Court’s reasoning is acceptable in accordance with Article 8(2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act.

2. Additional determination

A. The defendant's assertion

Considering the fact that the appraisal value of the appraisal report of the Korea Appraisal Board, the Plaintiff’s acquisition value of which is claimed as the acquisition value, is the appraisal for the purpose of collateral, and that the appraisal value of other factors was considerably affected by the appraisal value of the land (hereinafter “instant land”) among the instant real estate by calculating the value of other factors based on the example of appraisal of neighboring land appraised as the purpose of collateral, and that the proviso to Article 21(1) of the former Act on the Public Announcement and Appraisal of Real Estate Prices (amended by Act No. 12018, Aug. 6, 2013) provides that the appraisal for the purpose of collateral may be assessed differently from the market value of the land, the said appraisal value cannot be deemed the market value assessed by an objective and reasonable method.

B. Attached Form of relevant statutes

same as the entry.

C. Determination

1) According to the result of fact-finding on the Director of the Korea Appraisal Board of this Court, the purpose of appraisal and the purpose of appraisal are to calculate the price by applying the cost method, the transaction comparison method, the officially assessed price standard method, and the profit refund method according to the type of objects subject to appraisal, and thus, the appraisal method is the same, but the reference price used in calculating the price is to calculate the price by comparing the price with the same appraisal example as the purpose in question, so the appraisal price by the purpose of appraisal may vary

2) However, in full view of the purport of the entire pleadings, the following facts can be acknowledged in the evidence Nos. 2 and 10.

A) The present status of the instant land is as follows.

Location

Area

(Size)

Land Category

State of Use

Specific-use Area

Road Traffic

Formed land tax

OOdong 549-4

297.9

alternative:

Commercial Area

General Commercial Area

Solosophal paper

Illegal Punishment

P. P. M.S.

B) On August 25, 2009, the Korea Appraisal Board’s appraisal report (the time of price: August 24, 2009) was prepared with the Industrial Bank of Korea’s OO branch for the purpose of assessment, and the unit price of the instant land was calculated as follows.

(i)the selection of comparative standards;

Location

Area

(m)

Land Category

State of Use

Specific-use Area

Road Traffic

Formed land tax

officially announced land price (won/land size)

OOdong 50-1

330.9

alternative:

Commercial Area

General Commercial Area

Solosophal paper

Streetporizontal paper

OOO

(A) The basis for calculation of individual factors: The land of this case is similar to the standard of comparison and the overall price formation factors, but the individual factors are somewhat high in terms of land conditions (illegal land), etc., so the individual factors are to be corrected to 0.98.

(B) Other factors are to be corrected: The market price of neighboring similar lands in substitution and competition with the land of this case is higher than the officially announced price. Considering the example of nearby appraisal of the land of this case and the neighboring market price, the difference in the real price level is to be corrected as other factors and to be calculated as 1.52.

(1) An appraisal example of land for similar use in neighboring areas: The instant land is considerably heated in terms of street conditions, access conditions, etc. in preparation for the following evaluations:

No.

Location

Land Category

Area

(Size)

Unit price (won/land size)

Time of Price

Purpose of assessment

1

OOdong 548-4

alternative:

357

OOO

March 5, 2009

Security

2

OOdong 549-10

alternative:

127.9

OOO

December 4, 2007

Security

(2) Level of neighboring land: The appropriate level of land price of neighboring land having utility value similar to that of the instant land is inside and outside the scope of OO/m2.

C) Meanwhile, on May 2, 2013, the appraisal report (date of time: August 24, 2009) prepared on May 2, 2013 by the BB appraisal corporation (hereinafter “B appraisal corporation”) as the tax office with the purpose of appraisal (market price employment) and the place of submission as the tax office, and the unit price of the instant land among the appraisal values was calculated as follows.

(i)the selection of comparative standards;

Location

Area

(Size)

Land Category

State of Use

Specific-use Area

Road Traffic

Formed land tax

officially announced land price (won/land size)

OOdong 549-9

300.8

alternative:

Commercial Area

General Commercial Area

Madronia

Sejong Fluoron paper

OOO

(A) The basis for calculating the individual factors: The land in this case is heated on the street conditions (the width, system and continuity) and access conditions (the convenience with commercial area-centered and traffic facilities) compared to the comparative standard, so individual factors are to be revised to 0.79.79.

(B) Other factors are to be corrected: The value of other factors to be corrected shall be calculated by 1.60 comprehensively taking into account all the conditions, such as the level of neighboring land price, the example of evaluation, the location of land subject to the assessment, etc.

(1) Appraisal precedents of lands for similar uses in neighboring areas: The comparative standard shall be calculated by 1.644, considering the fact that the market price of a standard place compared with the market price of the lands subject to evaluations prior to the evaluations is opened in comparison with the following evaluation precedents, by taking into account the fact that the land is opened on the surface of the earth (road conditions and the surface of the earth).

No.

Location

Point of Time

Purpose of assessment

Unit price (won/land size)

1

OOdong 933-4

October 28, 2008

Auction

OOO

(2) A neighboring land level: A land price level similar to a comparable standard place is inside and outside the area of an OOO/m2.

3) In full view of the facts acknowledged in the above 2 above, the appraisal report of the Korea Appraisal Board was prepared for the purpose of security, and the appraisal report of the Korea Appraisal Board was prepared for the submission of the market access to the tax office. The unit price of the instant land at the pre-stage stage of applying the correction of other factors to the Korea Appraisal Board (OOO x 0.98930x 1.00x 0.98, but less than KRW 0.98; hereinafter the same shall apply) is for the Korea Appraisal Board (OO O x 0.98930x 1.00x 00 x 00 x 0.79). In the case of theCC Appraisal Board, the appraisal report of the Korea Appraisal Board was prepared for the purpose of security. The appraisal report of the Korea Appraisal Board was prepared for the purpose of security, and the appraisal report of the Korea Appraisal Board was 1.52 in the case of the Korea Appraisal Board, and the other correction values calculated by the Korea Appraisal Board as 1.60.

In light of these circumstances, even if the circumstances cited by the Defendant and the recognition of the foregoing paragraph (1) are acknowledged, it is difficult to view that the assessed value of the Korea Appraisal Board’s appraisal statement claiming the acquisition value is excessive compared to the market value. Examining the specific grounds for calculating the above assessed value through comparative standards selection, goods, etc., the above assessed value is an appraiser assessed by objective and reasonable methods, and can be deemed as the market value reflecting the objective exchange price of each of the instant real estate appropriately

Therefore, the defendant's above assertion is without merit.

3. Conclusion

If so, the judgment of the first instance court is legitimate, and the defendant's appeal against it is dismissed as it is without merit.