The burden of proving the legality of the taxation disposition

The burden of proving the legality of a taxation disposition is against the tax authority, so if the taxpayer contests the credibility of the documents based on the taxation disposition, the court should consider the credibility of the above documents and determine the legitimacy of the taxation disposition.

Article 8 of the Administrative Litigation Act, Article 187 of the Civil Procedure Act

[Judgment of the court below]

The Head of the Maternization Tax Office

Seoul High Court Decision 85Gu57 delivered on October 10, 1985

The judgment below is reversed, and the case is remanded to Seoul High Court.

We examine the grounds of appeal.

1. According to the reasoning of the lower judgment, the lower court determined that the Plaintiff’s sales of alcoholic beverages were 10 million won per annum with Nonparty 1 and 200 won per annum, based on the Plaintiff’s findings of the investigation of distribution process of alcoholic beverages to Nonparty 1, 200 won per annum from February 19, 1982 to August 4, 198, and determined that the Plaintiff’s sales of alcoholic beverages were 22,073,40 won per annum (excluding value-added tax 20,066,727 won), and that the Plaintiff’s sales of alcoholic beverages were 100 won per annum and 800 won per annum based on the Plaintiff’s findings of the investigation of distribution process of alcoholic beverages to Nonparty 2, 1984, and that the Plaintiff’s sales of alcoholic beverages were 100 won per annum 20,000 won per annum 70,000 won per annum 30,000 won per annum 27,4374,75.

2. The burden of proving the legality of the tax assessment by examining the case is against the tax authority. In a case where a taxpayer contests the credibility of documents, etc. based on the taxation disposition, the court shall consider the credibility of the above documents, etc. and determine the legitimacy of the taxation disposition. In addition, according to the provisions of Article 21(1) and (2) of the Value-Added Tax Act, Article 11(1) and (2) of the Special Consumption Tax Act, the value-added tax and the special consumption tax shall be, in the event there is no final tax return, or there is no error or omission in the reported matters, when there is no submission of the tax invoice in whole or in part, or when there is any possibility of evading the tax amount, it may be determined by the investigation based on the tax invoice, account books, and other evidence, and it shall be exceptionally allowed only when it is impossible

Nevertheless, the court below's determination that the above non-party 2's written confirmation that the above taxation disposition based on the above non-party 2 was unlawful, without examining the credibility of the above written confirmation as to the plaintiff's assertion that the above taxation disposition was unlawful. The court below rejected the above taxation disposition on the ground that there was an error of law by misunderstanding the legal principles of burden of proof as to the legality of the taxation disposition, or misunderstanding the reasoning of the above evidence No. 2-3 (non-party 2's written statement as to the above written confirmation and the record, and even if the court below acknowledged credibility of each of the above evidence No. 2-3 (non-party 2's written statement as to the above non-party 2), it was prepared at the time of investigation into the crime of violation of the Punishment of Tax Evaders Act against the above non-party 2, and it was hard to find the above non-party 2's non-party 2's non-party 2's non-party 2's non-party 42-party 2's written statement and non-party 28.

3. Therefore, the lower judgment is reversed, and the case is remanded to the lower court for further proceedings consistent with this Opinion. It is so decided as per Disposition by the assent of all participating judges.

Justices Osung-hwan (Presiding Justice)