Appropriateness of the assertion that the high-priced standard for newly-built house should be applied at the time of acquisition

The criteria for determining high-class houses shall be applied retroactively to the provisions of the former Act, and according to the criteria for determining high-class houses, the high-class houses are where the real transaction value at the time of transfer is at least 149 square meters of exclusive use area of 169.78 square meters and the transfer value is at least 600 million square meters, and the apartment houses in this case constitute high-class houses with an exclusive use area of

Article 99-3 of the Restriction of Special Taxation Act

Article 89 of the Income Tax Act

1. The plaintiff's claim is dismissed.

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

The Defendant’s disposition of imposition of capital gains tax of KRW 81,898,340 against the Plaintiff on December 4, 2007 is revoked.

1. Details of the disposition;

A. On December 15, 1999, the Plaintiff entered into a contract under which ○○○○ apartment on the ground of the plot of land, 112 Dong-dong 801 (278m2, 169.78m2, hereinafter referred to as the “multi-use apartment”) was sold at KRW 278,459,00 on the surface of the plot of land, Namyang-si, Namyang-si, Namyang-si, as a member of the association, and on March 24, 2006, the Plaintiff sold the instant apartment at KRW 650,000,000.

B. The apartment of this case was approved on December 7, 2002.

C. On December 4, 2007, the Defendant issued a disposition to correct and impose capital gains tax of 81,898,340 won on the Plaintiff for the reason that the apartment of this case was not subject to Article 99-3 (1) 2 of the former Restriction of Special Taxation Act (amended by Act No. 6762 of Dec. 11, 2002, hereinafter the former Act).

[Ground of recognition] Unsatisfy, Gap evidence 3 through 9 (including provisional number)

2. The legality of the disposition.

A. The plaintiff's assertion

The Plaintiff asserts to the purport that the instant disposition, which excluded the application of the provisions on reduction and exemption, is unlawful, even though the Plaintiff’s acquisition of a newly-built house constitutes a high-class house at the time of acquisition (approval for Use) as long as it is a tax support policy aimed at the construction period for the acquisition period of a newly-built house and the smooth supply of a newly-built house, should be determined depending on whether it constitutes a high-class house at the time of acquisition.

(b) Related statutes;

Article 99-3 of the Restriction of Special Taxation Act

Article 89 of the Income Tax Act

C. Determination

According to the provisions of Article 29(2) of the Addenda to the new law, where a new house under Article 99-3(1)2 is a newly-built house under Article 99-3(1) and has obtained approval for use prior to December 31, 2002, the standard for determining high-class houses shall be applied retroactively to the provisions of the former Act. According to Article 156 of the former Enforcement Decree, which is the standard for determining high-class houses at the time of the enforcement of the former Act, the high-class house is a high-class house with an exclusive area of 149 square meters or more, and the actual transaction value at the time of transfer is 60 million won or more, and the apartment house in this case is a high-class house with an exclusive area of 169.78 square meters and the transfer value is 650,000 square meters and 60

3. Conclusion

Thus, the plaintiff's claim of this case is dismissed as it is without merit.