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| TITLE | 【Syllabus of Latest Opinion】 Supreme Court Decision 2021Du51881 Decided September 12, 2024 【Revocation of Disposition Imposing General Income Tax】 [full Text] |
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| Summary | |
| 【Main Issues and Holdings】 [1] Method of determining whether to correspond to “when the transfer of stocks, etc. contributed by the contributors is restricted by the articles of incorporation of the corporation” stipulated as one of the constituent elements of the secondary tax liability of a corporation as referred to in Article 40(1)2 of the former Framework Act on National Taxes and, in such a case, where stocks, etc. of the contributors were issued by foreign corporations and thus correspond to legal relationships with foreign elements, whether the applicable law stipulated pursuant to the provisions of the former Act on Private International Law should be deemed the primary standard (affirmative in principle) Whether the law applicable to the establishment of the relevant corporation should apply to matters regarding the interpretation and effect of the articles of incorporation of the corporation (affirmative in principle) Method of confirming the meaning and details of the foreign law applicable in relation to legal relationships with foreign elements [2] In a case where when the head of the competent tax office imposed general income tax on Party A and notified Party A of such fact, but the property of Party A was insufficient to collect national taxes in arrears, the head of the competent tax office designated Corporation B as a person secondarily liable to pay taxes of Party A according to Article 40 of the former Framework Act on National Taxes on the premise that Party A is actually an oligopolistic stockholder holding a 100% stake in Corporation B corresponding to a foreign corporation under our Corporate Tax Act established in the Hong Kong Special Administrative Region in accordance with statutes or regulations of the Hong Kong Special Administrative Region of the People’s Republic of China and seized immovable assets and claims owned by Corporation B, issuing a disposition imposing general income tax, etc. upon Corporation B within the limit of the net asset value of Corporation B, the case holding that the lower court, which rendered a different judgment on the grounds that the stocks of Corporation B meet all the requirements stipulated in Article 40(1)2 of the former Framework Act on National Taxes as “when the transfer is restricted by the articles of incorporation,” erred and adversely affected the conclusion of judgment by misapprehending the legal doctrine | |
