Whether a corporation, which is subject to heavy acquisition tax, falls under a non-business land of a corporation, has been stipulated in the articles of incorporation of the corporation, which is the basis for determining whether it falls under the unique business of the corporation, but not

In light of the purport of Article 84-3 (1) 3 of the former Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 12028 of Dec. 31, 1986), the purpose of the amendment of the Enforcement Decree of the Local Tax Act (amended by Presidential Decree No. 10663 of Dec. 31, 1981) is to ex post facto voluntary manipulation of the amendment of the Act as a means to avoid heavy taxation of acquisition tax on the part of the taxpayer corporation. In addition, if the purpose of the project and the purpose of the corporate register in the corporate register are superior to each other, there is a concern about the application of the relevant provision, it shall be deemed that the business not registered in the corporate register is not included in the unique business of the corporation.

Article 112(2) of the Local Tax Act; Article 84-3(1)3 of the Enforcement Decree of the former Local Tax Act (amended by Presidential Decree No. 12028, Dec. 31, 1986)

Attorney Park Hong-soo, Counsel for the defendant-appellant

[Defendant-Appellant] Kim In-hwan, Counsel for defendant-appellant

Seoul High Court Decision 89Gu5111 delivered on December 27, 1990

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

We examine the grounds of appeal.

1. Article 112(2) of the Local Tax Act and Article 84-3(1)3 of the Enforcement Decree of the same Act (amended by Presidential Decree No. 12028, Dec. 31, 1986) stipulate that the land for non-business use of a corporation subject to heavy acquisition tax shall not be used directly for the proper purpose (the site for factories determined after consultation with the Minister of Home Affairs with the Minister of Home Affairs for two years; the land for sale shall be three years) within one year from the date of acquisition of the land for non-business use of the corporation (the site for factories determined by the Minister of Home Affairs after consultation with the Minister of Home Affairs). Thus, it shall be interpreted that the above provision shall not be applied to the specific purpose of the corporation's land for non-business use, which is the criteria for determining whether it falls under the unique purpose of the above corporation's own business under the laws or its articles of incorporation, and it shall be interpreted that the above provision shall not be applied to the specific purpose of the corporation's corporation's corporation's corporate register, as the above provision for non-business operation.

2. However, the court below, on the contrary of its opinion, interpreted that a corporation's inherent business under the above Enforcement Decree should be deemed to be included in the purpose business under its articles of incorporation, regardless of its language and text. Although the Plaintiff's urban gas business was not registered as an objective business on the Plaintiff's corporate register, it presumed that the above business should be deemed to be included in the Plaintiff's own purpose business unless the Plaintiff completed the amendment procedure to the articles of incorporation, which would add the above urban gas business to the purpose business under the articles of incorporation prior to the acquisition of the land in this case, as long as the Plaintiff had not registered as an objective business, prior to the acquisition of the land in this case, the above business should be deemed to be included in the Plaintiff's own purpose business, and determined that the Defendant's imposition of acquisition tax on the Plaintiff's acquisition of the land in this case by applying heavy taxation rate, other than general tax rate, on the ground that the Plaintiff did not use the land directly for the above purpose of urban gas business, on the ground that there

Therefore, the judgment of the court below is reversed and the case is remanded to the court below. It is so decided as per Disposition by the assent of all participating Justices.