Scope of registration for acquisition of real estate by a corporation subject to heavy registration tax;

Real estate registration subject to heavy registration tax under Article 138 (1) 3 of the Local Tax Act and Article 102 (2) of the former Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 10663 of Dec. 31, 1981) refers to registration of real estate acquisition which has the nature of fixed property used continuously and fixedly and directly for the business of the juristic person, such as offices or factory facilities necessary for the performance of its business. However, if a juristic person established with civil engineering and construction business purposes acquires land, etc. in order to sell housing in lots, it shall not be subject to heavy taxation and it shall be subject to general tax rate.

Article 6 of the Housing Construction Promotion Act, Article 138 of the Local Tax Act, Enforcement Decree of the Local Tax Act (Presidential Decree No. 9702), Article 102(2) of the Local Tax Act

Seoul High Court Decision 200

The head of Dongdaemun-gu

The plaintiff's claim is dismissed.

Litigation costs shall be borne by the plaintiff.

The Defendant’s disposition of imposition of KRW 7,780,50, and the defense tax of KRW 1,556,100, imposed on the Plaintiff as of October 16, 1981, shall be revoked.

The judgment that the lawsuit costs shall be borne by the defendant.

Considering the whole purport of the arguments in Gap evidence 1-2 (written decision), Gap evidence 2-2 (written decision), Gap evidence 4 (sales contract), Eul evidence 10 (written decision), Eul evidence 1-1 (written report), Eul evidence 2 (written investigation report), and Eul evidence 2 (written investigation report) without dispute over the formation, the plaintiff purchased 70,00,000,00 won in total, 46-4 and 5 sites of the Dongdaemun-gu Seoul Metropolitan Government heading 46-5, 297.5, 70,000 won in total, 70,000 won in total, 70,000 won in total, and 70,000 won in tax base were calculated with a standard market price of 26,775,000 won in total, 138 (1) 3 of the Local Tax Act, and the defendant shall file a voluntary report with the plaintiff on the price of the above real amount of registration tax, 4016,501,5,7000 won in total tax amount.

The Plaintiff is a corporation which is established for the purpose of supplying tenement houses, and has completed the registration of its business on April 17, 1981 pursuant to the provisions of Article 8 of the Housing Construction Promotion Act; on or after the completion of construction of tenement houses, the Plaintiff already purchased apartment houses and completed the construction of them in lots; on or after the completion of construction of the said real estate; on or after the completion of construction of the said real estate, the Plaintiff’s acquisition of the instant real estate does not constitute the registration of acquisition of real estate which is subject to heavy taxation provided for in Article 138(1)3 of the Local Tax Act because it is not the registration of acquisition of real estate which is continuously and regularly used for the said business; on or after the completion of construction of the said branch offices, the provisions of Article 130(1) of the Local Tax Act provides that the establishment of the said branch offices or sub-branch offices shall not be subject to the provisions of Article 138(1)3 of the Enforcement Decree of the Housing Construction Promotion Act or the provisions of Article 130(3) of the said Act.

In this case, the above provision provides that this shall not apply to the case where the construction of the housing is not commenced within 2 years after the acquisition of the land. The real estate registration is subject to heavy registration tax, which means the registration of the real estate acquired in the nature of the fixed property directly used for the business continuously and fixed by the juristic person, such as offices or factory facilities necessary for the performance of its business. However, if a juristic person whose business purpose is to acquire land, etc. for the construction of housing, it is reasonable to impose heavy tax and it is reasonable to impose taxes according to the general tax rate (No. 3) No. 4, and No. 5 (No. 4) No.

Therefore, the plaintiff's claim of this case based on the premise that the tax disposition of this case is illegal is dismissed as it is without merit, and the costs of lawsuit are assessed against the plaintiff who lost. It is so decided as per Disposition.

Judges Kim Jong-ju (Presiding Judge)