1. The plaintiff's claim is dismissed.

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

Details of the disposition

On April 26, 2016, the Plaintiff entered into a sales contract with the Plaintiff, on February 6, 2018, to sell the amount of KRW 1.360 million for the parking lot of KRW 1,557 square meters (hereinafter “C land”) owned by it (hereinafter “C land”), and completed the registration of ownership transfer on May 25, 2016.

With respect to the transfer of land C, the Plaintiff filed a report on the transfer income tax applying the reduction or exemption of transfer income tax for self-arable farmland pursuant to Article 69 of the former Restriction of Special Taxation Act (amended by Act No. 14390, Dec. 20, 2016; hereinafter “former Restriction of Special Taxation Act”).

On May 23, 2017, the Defendant issued a prior notice of taxation imposing capital gains tax of KRW 120,050,000 (including additional tax) for the year 2016, on the ground that “the Plaintiff cannot be deemed to have cultivated land C directly for at least eight years.” However, the Plaintiff filed a request for pre-assessment review upon objection. On July 13, 2017, the Defendant rendered a pre-assessment review to recognize 200 square meters of land C as farmland and accordingly correct the tax amount accordingly. On August 1, 2018, the Defendant issued a disposition imposing capital gains tax of KRW 90,761,540 (including additional tax) for the transfer income tax for the year 2016 (hereinafter “instant disposition”).

[Grounds for recognition] The Plaintiff’s assertion as to the legitimacy of the disposition of this case as to Gap’s evidence Nos. 1 through 4, Eul’s evidence Nos. 1 through 4, and the purport of the entire pleadings, was found to have been farmland at the time of transfer, since the Plaintiff’s assertion as to whether the disposition of this case was lawful, while continuously residing in Seocheon-si D on December 31, 1974, acquired C land and directly cultivated it until December 31, 2001. On or around August 2015, after restoring it to farmland and cultivating C’s shoulders and gars and gars, etc. on or around April 2016, and sold to B on May 25, 2016. As such, among C’s land, the land remaining (hereinafter “instant land”) excluding 200 square meters recognized by the Defendant as farmland was also farmland at the time of transfer.