The case holding that the taxation disposition of earned income tax imposed on the corporation by the tax authority is unlawful where the provisional payment for the resigned representative director can be recovered.

Even if Nonparty A, the representative director of the Plaintiff Company, received the provisional payment from the Plaintiff, and later resigned from the office of representative director, if: (a) the Plaintiff offered the real estate owned by Nonparty B as a debtor jointly and severally liable to the Plaintiff’s bank and a surety’s surety; (b) but due to the Plaintiff’s nonperformance, the auction procedure was conducted on the said real estate; and (c) was appropriated for repayment of the Plaintiff’s obligation to the above bank; and (d) the Plaintiff was liable for the repayment of the above provisional payment to the Plaintiff Company A; (b) it is a case where it is proved that the Plaintiff did not recover the provisional payment from the Plaintiff; and (c) it is objectively proven that the provisional payment was impossible to recover, the imposition of the tax on earned income against the Plaintiff

Article 94-2 (1) 1 (b) of the Enforcement Decree of the Corporate Tax Act; Article 1-2-7 (1) 2 and (2) 1 of the former General Rules on Corporate Tax (amended by March 1, 198)

[Defendant-Appellant] Han-jin, Counsel for defendant-appellant-appellant

Gangwon-gu Director of the District Office

Seoul High Court Decision 88Gu13320 decided Dec. 6, 1989

The appeal is dismissed.

The costs of appeal shall be assessed against the defendant.

The grounds of appeal are examined.

According to the court below's findings of fact-finding, the defendant's disposal of the above amount of 1,092,52,255 won as of the end of the above business year of 1986 by the plaintiff's non-party 1's non-party 1's non-party 1's non-party 1's non-party 1's non-party 1's non-party 1's non-party 1's non-party 6's non-party 1's non-party 6's non-party 1's non-party 1's non-party 6's non-party 1's non-party 1's non-party 1's non-party 1's non-party 1's non-party 1's non-party 1's non-party 1's non-party 1's non-party 6's non-party 1's non-party 1's non-party 1's non-party 6's non-party 1's non-party 3's non-party 1's non-party 1's claim.

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 Yong-sung (Presiding Justice)