A. Where a foreign corporation has indicated the name of the claimant as the representative of a domestic branch, and the trade name "OO Korean branch", whether it can be viewed as a legitimate examination and a request for trial by the foreign corporation

(b) Whether the head office of a foreign corporation is subject to the imposition of income tax, such as Class A employment income tax, in cases where it directly pays wages to the foreign workers belonging to the domestic branch;

A. The plaintiff, a foreign corporation, indicated the name of the claimant as "A" and the trade name as "OO Korean branch" in each claim while examining and requesting a judgment on the tax assessment in this case, but if the above "A" is the representative of a branch office in Korea of the plaintiff corporation, the Dong has the representative authority of the plaintiff corporation in Korea, so each of the above claims is deemed to have been examined and requested as the representative of the plaintiff corporation.

B. In a case where a domestic branch of a foreign corporation does not pay the pay to the foreign workers belonging to the domestic branch, but the head office of the foreign corporation directly pays to the workers in a check, the said pay shall be the Class B earned income under Article 21 (1) 2 (b) of the Income Tax Act. Accordingly, the said foreign corporation is not obligated to withhold taxes under the interpretation of Article 142 (1) of the said Act. The said foreign corporation’s assertion that the said payment should be appropriated as the expenses of the domestic branch of the said foreign corporation and deducted it as losses cannot be readily concluded that the said payment was paid

(a) Article 55 of the Framework Act on National Taxes, Article 56 of the Corporate Tax Act;

Scamtain Human Scamt Scam (Attorney Park Su-soo, Counsel for the plaintiff-appellant)

Head of Maritime Affairs Office

Daegu High Court Decision 82Gu277 delivered on March 15, 1984

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. According to the records, while examining and asking for the disposition of this case, the plaintiff is found to have indicated the name of the claimant in each claim as Scambd Korean branch, "Scambd Korean branch". On the other hand, according to the records entered in the copy of the register of the plaintiff corporation, "Scambor" is recognized to have been the representative of a branch in Korea of the plaintiff corporation, and it can be recognized that the plaintiff corporation has the representative of the plaintiff corporation in Korea. Thus, even if the trade name indication of the above claim was additionally stated as "Korean branch", each of the above claims is deemed to have been examined and requested as the representative of the plaintiff corporation. Therefore, the plaintiff did not make a legitimate procedure for the disposition of this case, and the judgment of the court below did not affect the conclusion of the judgment because it did not judge whether the procedure of the judgment of the court below has been implemented. Thus, there is no error in the misapprehension of legal principles or incomplete hearing.

2. Article 33(4) of the former Corporate Tax Act (amended by Act No. 2686, Dec. 21, 1974) provides that "only where there are clear and objective reasons prescribed by the Presidential Decree which cannot make a field investigation decision under the provisions of paragraph (3) above, the tax base and tax amount of corporate tax on income for the pertinent taxable year shall be determined under the conditions as prescribed by the Presidential Decree." According to the established facts of the court below, the plaintiff corporation shall be determined with the approval of the above tax base and tax amount of corporate tax on income for the pertinent taxable year under the conditions as prescribed by the Presidential Decree. The plaintiff corporation shall entrust the accounting corporation with the affairs of reporting corporate tax, etc. to the Seoul Office, which is an approved accounting corporation for both business years, and the accounting corporation's custody of the above accounting-related documents and accounting-related books, but the balance sheet prepared by the computer-processing book with the accounting-related documents, balance sheet prepared by the president of the account, etc., and evidence of the above facts that the plaintiff corporation could not easily have made the above determination of tax base and tax amount.

3. According to the reasoning of the judgment below, the court below acknowledged that the salary for foreign workers belonging to the domestic branch of the plaintiff corporation was not paid by the domestic branch, but paid by the head office of the plaintiff corporation directly to the workers at the expense of the plaintiff's domestic branch. However, since the plaintiff's salary received from a foreign corporation located abroad constitutes Class B earned income and the plaintiff does not have a withholding duty as to this part, the court below's above findings of fact are legitimate and it cannot be concluded that the plaintiff asserted that the above salary was paid by the domestic branch of the plaintiff corporation and the above salary was deducted as losses. Thus, since Article 21 (1) 2 (b) of the Income Tax Act provides that the plaintiff's salary from the foreign corporation or the foreign corporation (excluding a domestic branch or a domestic business office) is classified as the wage and salary income of Class A, the court below's determination of the wage and salary income of Class A is justified and there is no error in the misapprehension of legal principle as to the wage and salary income of Class B under Article 21 (1) 2 (b) of the same Act.

4. Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Kim Young-ju (Presiding Justice)