Whether or not to recognize necessary expenses for interior works

The necessary expenses to be deducted from the transfer value are capital expenditure, but the documents submitted by the Plaintiff alone are insufficient to recognize them.

The contents of the decision shall be the same as attached.

1. The plaintiff's claim is dismissed.

2. The plaintiff shall bear the litigation costs.

The imposition of capital gains tax of KRW 61,59,710 for the year 2004 that the Defendant notified to the Plaintiff on March 3, 2008 shall be revoked.

1. Circumstances of the disposition;

A. On April 20, 2002, the Plaintiff acquired ○○○○○○○○○ Dong 923, 104 Dong 606 (hereinafter “instant real estate”) from ○○○○○○○○○○○○○, 923, and transferred the instant real estate to Western on March 15, 2004, on May 31, 2004, and filed a preliminary return of transfer income tax with the transfer value of KRW 295,00,000, and the acquisition value of KRW 282,00,000.

B. The Defendant confirmed that on June 9, 2006, the transfer value of the instant real estate was KRW 410,000,000, and the acquisition value was KRW 405,000,000 when the Defendant transferred the instant real estate to GaB, and subsequently, confirmed that the Plaintiff transferred the instant real estate in KRW 405,00,000, and imposed the Plaintiff KRW 61,59,710 on March 3, 2008 on the Plaintiff (the instant disposition) by deeming that the Plaintiff transferred the instant real estate in KRW 405,00,000 (the instant disposition).

C. The Plaintiff appealed and raised an objection on May 30, 2008. On January 21, 2009, the Plaintiff filed the instant lawsuit on June 18, 2009 upon receipt of a decision of dismissal.

2. Related statutes;

It is as shown in the attached Form.

3. The plaintiff's master;

At the time of transfer of the instant real property, the Plaintiff acquired all of the furniture, household appliances, and interior facilities used by the Plaintiff by recognizing the value of indoor interior interior interior interior interior interior interior interior, calculated as KRW 110,000,000, and accordingly, the sales price was KRW 405,00,000.

Before acquiring and occupying the instant real estate on April 20, 202, the Plaintiff paid the construction cost of KRW 64,000,000 to △△△ Man, and purchased the materials of KRW 8,477,600. A separate amount of KRW 15,00,000 to replace the water pipes of the Titering and the Jeju bank. As such, the Plaintiff was a total of KRW 85,137,60,000 to replace the water pipes of the Titering and the Jeju bank, which is a total of KRW 85,137,60,00, should be deducted as necessary expenses.

On the other hand, 22,522,400 won obtained by subtracting 85,137,600 won from 110,000,000 won from 85,137,600 won from the transfer value of the real estate at the time of the transfer of the instant real estate.

Therefore, the amount equivalent to KRW 110,00,00 is deducted from the transfer value or included in necessary expenses and the Plaintiff’s transfer income is ultimately the same as the amount reported by the Plaintiff. Therefore, the instant disposition is unlawful.

4. Determination

Article 97(1) of the Income Tax Act provides that “The capital expenditure” means the repair cost disbursed to extend the service life of depreciable assets owned by a business operator or to increase the real value of the relevant assets, as prescribed by Presidential Decree, by means of the capital expenditure, etc. to be deducted from the transfer value, and Article 67 of the Enforcement Decree of the same Act provides that “the capital expenditure” means the repair cost disbursed to extend the service life of the depreciable assets owned by the business operator or to increase the real value of the relevant assets. The burden of proof of the existence of such necessary expenses

The statement of evidence Nos. 3 and 4 alone is insufficient to acknowledge the plaintiff's above assertion, and there is no other evidence to acknowledge it. Thus, the defendant's disposition of this case which was not deducted from the transfer value or recognized as necessary expenses equivalent to 110,00,000 won as the plaintiff's head, is legitimate. The plaintiff's claim is dismissed as it is without merit. It is so decided as per Disposition.