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1. The plaintiff's claim is dismissed.
2. The costs of lawsuit shall be borne by the Plaintiff.
Reasons
1. On November 21, 1985, the Plaintiff acquired a building B, B, 123.6 square meters and its ground (hereinafter “instant real estate”) and transferred on May 18, 2010 due to the sale by auction of real estate. On August 1, 2013, the Defendant issued a disposition imposing capital gains tax of KRW 196,730,040 on the Plaintiff for the year 2010 (hereinafter “instant disposition”). The fact that the Plaintiff filed a request for a tax appeal and received a decision of dismissal from the Tax Tribunal on May 12, 2014 is not disputed between the parties, or that it is recognized by the evidence No. 1, A, and evidence Nos. 6 through 10 (including the serial number, hereinafter the same shall apply).
2. Whether the disposition is lawful;
A. The plaintiff's assertion that the plaintiff acquired the real estate of this case in KRW 145,00,000 and carried out the renovation and reconstruction construction work by spending a total of KRW 396,20,000 in three times, which shall be deducted as necessary expenses. Thus, it is unlawful that the defendant calculated the acquisition price based on the conversion price, not the actual transaction price for the acquisition of the above real estate, and that this part of the deduction is not recognized.
B. According to the relevant legal doctrine and Article 97(3) of the former Income Tax Act (amended by Act No. 10408, Dec. 27, 2010) and Article 163(3) and (6) of the former Enforcement Decree (amended by Presidential Decree No. 23588, Feb. 2, 2012) of the former Enforcement Decree, where the acquisition value of assets is based on the actual transaction value, the necessary expenses that can be deducted from the calculation of gains from transfer may include the capital expenditure of the assets or the cost of lawsuit directly required for securing ownership. However, where the acquisition value is calculated based on the conversion value as at the time of acquisition of assets, the necessary expenses other than the acquisition value may be recognized only as 3% of the standard market value at the time of acquisition, namely, the estimated deduction amount.
The actual transaction price, which is the basis for calculating gains on transfer, shall reflect the objective exchange values.