National High Court Decision 1993Gyeong1544, 1993 07.09

Addition

Dismissal

It is judged that the disposition of the disposition imposing value-added tax is legitimate after calculating the inventory tax amount at the time when the general taxable person is deemed to have been converted from the special taxable person.

Article 25 of the Value-Added Tax Act: Simplified Taxation and Special Taxation (Revised 29, 195) / Article 74 of the Enforcement Decree of the Value-Added Tax Act, the scope of simplified taxation and special taxation)

I dismiss the appeal.

1. Summary of the original disposition;

The claimant registered the real estate rental business with OOOOOO in Gyeyang-si in Ansan-si in Gyeonggi-do, and completed and started the business after completing the building of 1,141.05 square meters of the second floor of the underground floor on the ground above 89.11, the claimant reported the tax base of value-added tax and tax amount of value-added tax with the amount of 2,830,954 won and the amount of 80,450,000 won in the final return of value-added tax base for the second floor of the second floor of the underground floor in the 89.11.25.259.

Since the claimant's total amount of proceeds from the initial taxable period (the second period of 89 year) in which a new business began is less than 36 million won, the disposition agency shall be deemed to have been converted from the second period of 90 years to the special taxation, and the claimant shall calculate the amount of tax payable (7,858,875 won) as of July 1, 90 for the fixed assets (replacement facilities) for which an input tax amount is deducted in relation to the new construction of a building by the claimant, and then notified the claimant of the value-added tax 6,164,100 on February 16, 93.

The claimant appealed against this and filed a request for adjudication on March 26, 93.6.10

2. Opinions of the applicant and the Commissioner of the National Tax Service;

(a) Request;

(1) The claimant's failure to rent in part at the end of the taxable period (89.12.31) due to the failure to rent in part at the end of the lease business (89.12.31) and resulting in the amount converted into the value of supply in question at 1 year (2,830,954) is below 36,00,000 won, so it is improper to determine whether to be subject to a special taxation on the basis of the value of supply in the pertinent taxable period, and it is improper to determine whether to grant a special taxation on the basis of the value of supply in the pertinent taxable period;

(2) In converting a general taxable person into a special taxable person, the claimant is deemed to have been converted into a special taxable person without notifying the parties of the conversion of the relevant taxable type, and thus, the claimant's assertion that it is improper to impose a inventory tax.

(b) Opinions of the Commissioner of the National Tax Service;

Since the value of supply for the second period of 89 years, which was reported after the claimant registered the business of real estate rental business and started the business, is less than 36 million won, the Commissioner of the National Tax Service holds that there is no error in the disposition of the disposition of the disposition by the disposition authority imposing inventory tax pursuant to Article 25(2) of the Value-Added Tax Act, Article 74-2 of the Enforcement Decree of the same Act and Article 23-3 of the Enforcement Rule of the same Act

3. Hearing and determination

A. Key issue

This case is a dispute as to whether the applicant's business size falls under the scope of special taxation, and whether it can be converted to a special taxation against the business operator's will without notice of the disposition agency's conversion of taxation type.

B. First, examining whether the applicant’s business size falls under the scope of special taxation

(1) According to Article 25(2) of the Value-Added Tax Act, with respect to a business operator who newly starts a business during the immediately preceding or immediately preceding taxable period, the scope of special taxation shall be determined on the basis of an amount calculated by converting the total amount of the proceeds from the commencement of the business to the end of the taxable period from the date of the business to the end of the taxable period. In this case, if there is a fraction of less than one month, it shall be one month. The scope of special taxation shall be defined as "if there is an agent, intermediary, intermediary, consignment, consignment sales, and contracting, the total amount of the proceeds from supply shall be less than 36 million won

(2) The claimant registered a real estate as a general taxable person to the disposition authority 89.6.21, and newly constructed a neighborhood living facility of 1,141.05 square meters on the ground of 624.7 square meters in Gyeyang-si, OOOOOO in Gyeonggi-do, 89.11, and reported the value-added tax base for the second period of 89 years (2,830,954 won in October and December 89) after commencing the business, the value-added tax base for the second period of 89 years (89.10 through December 89) and the purchase price for fixed assets of 80,450,000 won.

(3) In the case of a claimant who newly built the above building and started a real estate rental business, the total amount of the proceeds from the first taxable period from the commencement of the business concerned to the end of the first taxable period (89.12.31) shall be less than 16,985,724 won (2,830,954 won ±2,830,954 won ±2 months x 12 months) and thus falls under the scope of special taxation.

C. Next, whether it is reasonable to impose a tax on stock after converting into a special taxation without notice of the conversion of taxation type.

(1) According to the provisions of Article 74-2 of the Enforcement Decree of the Value-Added Tax Act, the period during which the special taxation provision is or is not applicable is from the second taxable period of the year following the year in which the value of supplies for one year falls short of the amount under any of the subparagraphs of Article 74, to the first taxable period of the next year, and if a new business is commenced, the head of the tax office having jurisdiction over the businessman concerned shall notify it from the first taxable period to the 20th day before the beginning of the taxable period in which the special taxation provision is applicable or is not applicable, the correction of the business registration certificate and deliver it to the business before the beginning of the taxable period. A business operator to whom the special taxation provision is applied at the time prescribed above shall be subject to the special taxation provision regardless of the notice of conversion

Article 30 of the Value-Added Tax Act and Article 78 of the Enforcement Decree of the same Act stipulate that special taxable persons shall be subject to the application of the provisions of the general taxable persons 10 days prior to the commencement date of the taxable period.

(2) In the case of claimant, the sum of the proceeds from supply in the first taxable period (the second taxable period in 89) commencing a real estate rental business falls under the scope of special taxation and is converted from a general taxable person to a special taxable person because the amount converted from the sum of proceeds from supply in the first taxable period (the second taxable period in 89) in the first taxable period (the second taxable period) falls under the scope of special taxation, and the claimant who is the business operator did not report the waiver of special taxation under Article 30 of the Value

In full view of the above facts, it is determined that the claimant's disposition imposing value-added tax on the second period portion of the 89 year return after the claimant newly started a real estate rental business is legitimate on the ground that the amount calculated by converting the value of value-added tax on the second period portion of the 89 year return into the value of value-added tax on the 1.0 million won is less than 36 million won and the claimant did not report the waiver of special taxation within the legal deadline.

D. Accordingly, the appeal is without merit, and it is so decided as per Disposition in accordance with Articles 81 and 65(1)2 of the Framework Act on National Taxes.