There is a secondary tax liability of the transferee for national taxes imposed on the transferor after the business transfer (negative)

Since the transferee of the business becomes liable for secondary tax liability only for the national taxes already imposed at the time of the transfer or acquisition of the business, the transferee of the business cannot be liable for secondary tax liability for national taxes imposed on the transferor after the transfer or acquisition of the business, or for additional dues and disposition fees for arrears related thereto.

Article 41 of the Framework Act on National Taxes

Supreme Court Decision 87Nu1174 delivered on April 12, 1988 (Gong1988,857) 89Nu6723 delivered on December 26, 1989 (Gong1990,420) 90Nu1892 delivered on August 28, 1990 (Gong190,2042)

Plaintiff

The director of the tax office

Seoul High Court Decision 91Gu874 delivered on July 25, 1991

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The defendant's grounds of appeal are examined.

Article 41 of the Framework Act on National Taxes only applies to the national taxes already imposed at the time of the transfer or acquisition of business, and therefore, the transferee of business becomes liable for secondary tax liability. Thus, the established precedents of the party members have been taken that the transferee cannot be liable for secondary tax liability for the national taxes imposed on the transferor after the transfer or acquisition of business, additional dues related thereto, and disposition fee for arrears imposed on the transferor (Supreme Court Decision 87Nu1174 delivered on April 12, 198; Supreme Court Decision 89Nu6723 delivered on December 26, 198; Supreme Court Decision 90Nu1892 delivered on August 28, 199, etc.).

We cannot accept the decision of the court below that there is an error of law by misunderstanding the legal principles as to the secondary tax liability of the business transferee.

Therefore, the defendant's appeal is dismissed and all costs of appeal are assessed against the losing defendant. It is so decided as per Disposition by the assent of all participating Justices.

Justices Yoon Jae-ho (Presiding Justice)