National High Court Decision 2001west 1399 (No. 23, 2002)

A corporation

Dismissal

Where the claimant corporation fails to present a series of books, etc. related to the tallying procedure, which can confirm that the tallying procedure is a conditional sale, the date of delivery shall be deemed the time of supply for the goods.

Article 17 of the Corporate Tax Act: Time when the profits and losses accrue and calculation of acquisition value / [Business Year of accrual of the profits and losses]

I dismiss the appeal.

1. Summary of disposition;

A requesting corporation shall enter into a fertilizer supply contract with the Association (hereinafter referred to as the "Association") in 198 and 1999 as a corporation that manufactures and sells fertilizers and nitrogen compounds at the location of the OOOOOOOOO of the Jung-gu Seoul Special Metropolitan City (hereinafter referred to as the "OOOOOOOOO") to deliver for example, fertilizers and BB fertilizers (hereinafter referred to as the "non-point special fertilizers") to the designated places of OOOOOO storage and OOOOOO. After delivery by the requesting corporation to farmers within one to two days from the date of the factory shipment of the requesting corporation, the requesting corporation shall receive the receipt from the farmers, and when OOOO submits a certificate of acquisition of the farm household together with the certificate of acquisition of the OOOOO, OOOO shall put it on the completed quantity of the fertilizer, and the requesting corporation shall include the quantity of OOOO in sales.

According to Article 68 (1) 1 of the Enforcement Decree of the Corporate Tax Act, the business year in which sales profits and losses accrue from the sale of the product when a regular investigation into the corporate tax is conducted against the requesting corporation belongs to the business year in which the date of delivery of the product belongs. Thus, after the delivery of the product, the director of the regional tax office has made a check of the product by electronic manipulation after the lapse of a considerable period from the delivery date of the product, and then carried it over to the next period without including it as sales in the business year to which the date of delivery of the product belongs. Thus, it is unreasonable to make an appropriation for sales by carrying it over to the second period, Article 40 of the Corporate Tax Act, Article 68 of the Enforcement Decree of the Corporate Tax Act, Article 33 of the Enforcement Decree of the same Act, Article 9 of the Value-Added Tax Act, Article 21 of the Enforcement Decree of the Value-Added Tax Act, and Article 21 of the Enforcement Decree of the same Act shall make a reservation of the sales cost 2,034,80.

The applicant filed an appeal on May 30, 2001.

2. Opinion of the requesting corporation and the disposition agency;

A. The claimant corporation's assertion

(1) As to the claim(1)

In the purchase supply contract entered into with the Association, the applicant corporation issued a tax invoice in accordance with the quantity of the mark and properly appropriated the sales as the agent of the applicant corporation received the receipt of the receipt from the farmer and submitted it to the OOOO with the certificate of acceptance of the farm household, and the OOOO issued a fertilizer inspection certificate after the entry into the OOOOOO's computer network was completed.

In accordance with the terms and conditions of acceptance and acceptance confirmation clause of the instant contract, even though the unit association of the OOC issues an electronic acceptance manipulation, fertilizer inspection certificate, and the fertilizer inspection certificate is signed and sealed by the members of the OOC unit association in the column of the tallyman, the tallying agency is unreasonable since it presumed that the computerized input of the OO computer network is merely a simple method of compiling and that it is not a sale under the condition of examination. Therefore, the instant disposition of imposition should be revoked.

(2) As to Section B:

The amount pointed out by the agency as non-issuance and omission of tax invoices in 198 and 199 shall include the actual inventory of the special fertilizer products kept in stock at the agency of the requesting agency, so this part shall be excluded from omission of sales.

(b) Opinions of disposition agencies;

(1) As to the claim(1)

Article 68 (1) 1 of the Enforcement Decree of the Corporate Tax Act provides that the business year of accrual of earnings and losses for the sales of assets shall be the date on which the goods are delivered, and in the determination of the date of delivery under Article 3 (1) 1 of the Enforcement Rule of the same Act, where the goods are delivered under a supply contract, the relevant goods shall be kept in the place on which the contract is to be delivered: Provided, That in the case of the goods for which the acquisition and delivery are finalized through the inspection

Tally, it means the procedure to confirm quality, quantity, price, etc. of ordered goods, and it is the method of calculating the quantity supplied to OOO by means of data processing, such as the terms and conditions of acceptance under the purchase and supply contract of the major special fertilizer, and the acceptance thereof is also confirmed, so that OOOO's input in the OO computer network is merely the means of compiling the quantity supplied to OOO, and it is not the meaning of tally. Thus, the claimant corporation's assertion that it is a conditional sale is unfair. The claimant corporation should deliver OOOO storage and OOOOO's designated place, and deliver the special fertilizer to the OOOO warehouse and farmer within 1 to 2 days ordinarily from the date of the factory shipment of the applicant corporation after receipt of the order. In addition, if the agent presents the receipt certificate to OO at the time of delivery, and if OOO is acquired by electronic data processing, the claimant corporation's assertion that it does not have any reason to claim the rights and obligations.

(2) As to Section B:

The requesting corporation stated that the amount of recovery pointed out as non-issuance and omission of tax invoice in 1998 and 199 includes the actual inventory of special fertilizers products in stock status at the requesting corporation. However, at the time of the regular investigation of corporate tax in November 2000, the requesting corporation stated that the actual inventory of the special fertilizer products in stock status is included in the actual inventory (25,251,095,095, 275,564,015, 275,015, 275,015) but the requesting corporation stated that at the time of the regular investigation of corporate tax in 1998 and 1999, the amount related to the association's electronic data delay and the acquisition certificate of the farm household that did not present to the association, and that the actual inventory quantity in the agency is not identified, and that the agency's inventory quantity was not stored in the agency's request prior to the review of tax review, but the agency's disposal is justified in collusion with the initial inventory amount.

3. Hearing and determination

A. Key issue

(1) Whether the sales time of the pertinent special fertilizer can be seen as the time when the pertinent special fertilizer was delivered or as the time when the applicant corporation recognized the completion of inspection

(2) The legitimacy of the claim that the disposition agency's disposal of the claimed corporation contains the actual stock of the key special fertilizer not delivered to the farmer, etc. but kept in stock at the agency's disposal in the 1998 and 199.

(b) Related statutes;

Article 17 of the former Corporate Tax Act: Time when profits and losses accrue and calculation of acquisition value)

(1) The fiscal year of accrual of earnings and losses of a domestic corporation shall be the fiscal year which includes the date on which the concerned earnings and losses are settled.

(2) The acquisition value of assets acquired by a domestic corporation through purchase, manufacture, etc. shall be the amount calculated by adding the purchase value or the manufacturing cost of the relevant assets to the incidental expenses.

(3) Notwithstanding the provisions of paragraphs (1) and (2), where a domestic corporation applies corporate accounting standards which are generally deemed fair and reasonable with respect to the fiscal year of accrual of earnings and losses and the acquisition and evaluation of assets and liabilities, or continuously applies practices, the relevant corporate accounting standards or practices shall govern: Provided, That this shall not apply to cases prescribed by Presidential Decree

Article 36 of the Enforcement Decree of the Corporate Tax Act [Business Year]

(1) The business year which includes the date on which the gross income and the deductible expenses under the provisions of Article 17 (1) and (4) of the Act are confirmed shall be as follows:

1. The business year in which the profit or loss from the sale of goods (excluding the real estate), products, or other products in each business year is business year shall be the business year in which the delivery date of the goods, products, or products is included;

2. The business year in which earnings and losses accrue from the transfer of assets not falling under the provisions of subparagraph 1 in each business year shall be the business year which includes the date of the settlement of the price: Provided, That in cases where registration of transfer of ownership, etc. (including registration) is made or the relevant assets are delivered before the settlement of the price, the business year which includes the date of registration of transfer (including the date of registration)

Article 14 of the Enforcement Rule of the former Corporate Tax Act

"Date of delivery of goods, products, or products" in Article 36 (1) 1 of the Decree means the date prescribed in the relevant subparagraph in any of the following cases:

1. In case where the goods are supplied or processed under a delivery contract or a consignment processing contract, the date on which the relevant goods are stored in the place where the delivery is to be carried out under the contract: Provided, That for the goods for which the acceptance and delivery are finally decided through an inspection,

Article 40 of the Corporate Tax Act for Business Year of Profit and Loss

(1) The fiscal year of accrual of earnings and losses of a domestic corporation shall be the fiscal year which includes the date on which the concerned earnings and losses are settled.

(2) Matters necessary for the scope of the business year of accrual of earnings and losses under the provisions of paragraph (1) shall be prescribed by the Presidential Decree.

Article 68 of the Enforcement Decree of the Corporate Tax Act (Business Year for Sale Profit and Loss of Facilities)

(1) In the application of the provisions of Article 40 (1) and (2) of the Act, the fiscal year of accrual of earnings and losses accruing from the transfer of assets shall be the fiscal year which includes the date under each of the

1. For the sale of commodities (excluding real estate), manufactured goods, or other products (hereafter referred to as "products" in this Article): The date on which the commodities are delivered;

Article 33 of the Enforcement Rule of the Corporate Tax Act: Scope of the date of delivery

For the determination on the date of delivery of the goods, etc. under Article 68 (1) 1 of the Decree, the date prescribed in the relevant subparagraph shall apply in the following cases:

1. In case where the goods are supplied or processed under a delivery contract or a consignment processing contract, the date on which the relevant goods are stored in the place where the delivery is to be carried out under the contract: Provided, That in case of goods the acceptance and delivery of which are decided by the inspection concerned,

Article 9 of the Value-Added Tax Act

(1) The time of supply for goods shall be the time provided for in the following subparagraphs:

1. When the goods are delivered, in case where the moving of goods is required;

2. When the goods are made available, in case where the moving of goods is not required; and

3. (Omission)

Article 21 of the Enforcement Decree of the Value-Added Tax Act

(1) The time of supply for goods under Article 9 (1) of the Act shall be as follows: Provided, That if the time of supply for goods supplied before the closure of business arrives after the date of such cessation, the time of supply shall be deemed the time of

1. For cash sales, outdoor sales, or installment sales, when goods are delivered or made available;

2. (Omission)

3. For conditional sale, conditional sale, and other conditional sale and time-limit sale, when the conditions are fulfilled or the sale becomes final and conclusive after the lapse of time limit;

C. Facts and determination

(1) We examine issues ①.

The requesting corporation directly supplies the key special fertilizer to farmers and OOOO which are scattered across the country through the requesting corporation's agency through a sales contract with the OOO's federation, and each agency nationwide entrusts the OOO with the inspection of the fertilizer receipt after receiving the fertilizer receipt from the farmers, and when the electronic input is finished through the OO computer network after the inspection by the OOOO, the requesting corporation shall include the quantity of the fertilizer in sales. The quantity of the fertilizer is still required for a long period of time in the distribution structure from the direct supplier to the farm to the examination of the shipment, and the omission of the sales appropriation of the quantity of the pre-inspection is the assertion that from the viewpoint of the requesting corporation supplying the fertilizer, the timing of the completion of the inspection should be considered as sales.

In regard to this, the agency's claim that it takes place for a long period of time after the delivery of fertilizers is unfair, and as to the claim that it is a conditional sale, it is reasonable to confirm the quality, quantity, price, etc. of the ordered goods, and to enter into the OO computer network for the fertilizers that are delivered immediately, such as the terms and conditions of acceptance and acceptance under the purchase supply contract of the major fertilizers, and the terms and conditions of acceptance under the purchase supply contract of the major fertilizers, the agency's entry of the delivered fertilizers into the OO computer network is merely an aggregate method for the quantity supplied to the OOO, not the meaning of examination, and the business year for which sales profits and losses accruing from the sale of the products, etc. belongs to the date of delivery of the products, etc., so this disposition is justifiable.

In light of the contract for the purchase and supply of the controversial special fertilizers between the requesting corporation and the non-claimed OOF, Article 6 (Conditions of Acceptance)(2) provides that "the requesting corporation shall directly transmit and supply the quantity and refined products to the member cooperatives designated places of the OOF or supply them under the conditions of farm trademark in accordance with the notification of the modification of the fertilizer placed by the OOF, and Article 6(3) provides that "the date of delivery shall be the day designated by the association." Article 7(1) of the same contract provides that "if a member cooperative of the OF has taken over fertilizers, it shall be the day designated by the association."

In the case where the claimant corporation claims that the special fertilizer in question is directly supplied to the farm household for a considerable time from the shipment to the examination of the shipment, and the time of the completion of the examination falls under the contract, and the fertilizer is taken over under Article 7 of the above contract or Article 7 of the above contract, the claimant corporation claims that the time of completion of the examination should be regarded as the sale. Generally, the examination refers to the confirmation of the nature and quality of the goods, whether the goods are damaged, the quantity and the price of the goods, etc., and the applicant corporation does not present a series of books related to the examination procedure, i.e., a series of books related to the examination procedure, namely, the date of sale, name, quantity, amount, the amount of the goods, and the inspection ledger or the return statement, etc. stating the inspection date, and thus, the sale of the goods is not verified.

On the other hand, the Korean Tribunal has inquiredd about the official text (the Korean Supreme Court Decision 46830-1240, November 12, 2001) of the OOO cooperative, OOOO cooperative, etc. in the event of the non-request-based POO cooperative, EOOOO cooperative, etc., and it replys that the date when the OOO was delivered to the farm and the date when the OOO was examined is the same.

In full view of these facts and relevant laws, the first disposition imposed on the company by deeming the date when the corporation which requested the disposition was delivered the special fertilizers to the farm members under the exhibition regulations as the time of supply for the goods is deemed to have not been erroneous.

(2) As to the issue ②

The claimant corporation's assertion that the amount of recovery pointed out by the disposition agency as non-issuance of the tax invoice in 1998 through 1999 is not delivered to farmers, etc., but includes the real inventory of the related special fertilizers in stock condition at the agency, so this part shall be deducted from the omitted sales amount. However, the claimant corporation's assertion that this part shall be deducted from the omitted sales amount. However, it is difficult to accept the claim claim because it did not present specific and objective evidence, etc. to support the claim, unlike the related books such as the non-issuance of the goods that can be identified

D. Conclusion

Since a request for a trial is recognized as groundless as a result of a trial, it shall be decided as ordered in accordance with Articles 81 and 65(1)3 of the Framework Act on National Taxes.