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ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON NATIONAL TAXES

ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON NATIONAL TAXES

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ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON NATIONAL TAXES

Presidential Decree No. 7459, Dec. 31, 1974

Amended by Presidential Decree No. 8352, Dec. 31, 1976 Presidential Decree No. 8650, Aug. 20, 1977

Presidential Decree No. 8749, Nov. 21, 1977

Presidential Decree No. 9228, Dec. 30, 1978

Presidential Decree No. 9693, Dec. 31, 1979

Presidential Decree No. 10118, Dec. 31, 1980

Presidential Decree No. 10696, Dec. 31, 1981

Presidential Decree No. 11577, Dec. 31, 1984

Presidential Decree No. 12882, Dec. 30, 1989

Presidential Decree No. 13192, Dec. 31, 1990

Presidential Decree No. 13539, Dec. 31, 1991

Presidential Decree No. 13895, May 27, 1993

Presidential Decree No. 14076, Dec. 31, 1993

Presidential Decree No. 14473, Dec. 31, 1994

Presidential Decree No. 14860, Dec. 30, 1995

Presidential Decree No. 14870, Dec. 30, 1995

Presidential Decree No. 14988, Apr. 27, 1996

Presidential Decree No. 15014, Jun. 4, 1996

Presidential Decree No. 15189, Dec. 31, 1996

Presidential Decree No. 15968, Dec. 31, 1998

Presidential Decree No. 16622, Dec. 28, 1999

Presidential Decree No. 17036, Dec. 29, 2000

Presidential Decree No. 17047, Dec. 29, 2000

Presidential Decree No. 17830, Dec. 30, 2002

Presidential Decree No. 18172, Dec. 30, 2003

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 18385, May 10, 2004

Presidential Decree No. 18849, May 31, 2005

Presidential Decree No. 19461, Apr. 28, 2006

Presidential Decree No. 19513, Jun. 12, 2006

Presidential Decree No. 19893, Feb. 28, 2007

Presidential Decree No. 20516, Dec. 31, 2007

Presidential Decree No. 20622, Feb. 22, 2008

Presidential Decree No. 20654, Feb. 29, 2008

CHAPTER GENERAL PROVISIONS

Article 1 (Definition)

Article 1-2 (Special Cases to Electronic Returns) Article 2 (Extension of Time Limit and Provision of Security) Article 2-2 (Extension of Time Limit and Limit of Installment Payment) Article 3 (Application for Extension of Time Limit) ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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Article 4 (Approval of Extension of Time Limit)

Article 4-2 (Revocation of Extension of Payment Time Limit) Article 4-3 (Revocation Notice about Extension of Payment Time Limit) Article 5 (Reporting of Place to be Served on)

Article 5-2 (Scope of Delivery by General Mail)

Article 6 (Letter of Service)

Article 6-2 (Application for Electronic Service)

Article 6-3 (Causes to Make Electronic Service Impossible) Article 6-4 (Scope of Documents to be Provided through Electronic Service) Article 7 (Confirmation of Unknown Address)

Article 7-2 (Service by Public Notification)

Article 8 (Application and Approval, etc. of Organization Deemed as Juristic Person) Article 9 (Reporting of Representative, etc. of Organization Deemed as Juristic Person) Article 10 (Notification of Designation of Representative, etc. of Organization Deemed as Juristic Person)

CHAPTER LIABILITY TO PAY TAX

Article 10-2 (Determination of Tax Liability)

Article 11 (Value of Inherited Property)

Article 12 (Report on Representative of Heirs)

Article 12-2 (Scope of False Report, etc. of Inheritance Tax or Gift Tax) Article 12-3 (Initial Date in Reckoning Exclusion Period for National Taxes) Article 12-4 (Initial Date in Reckoning Extinctive Prescription of National Taxes) Article 13 (Appraisal of Security for Tax Payment) Article 14 (Offering of Security for Tax Payment) Article 15 (Change and Supplementation of Security for Tax Payment) Article 16 (Payment and Collection through Security for Tax Payment) Article 17 (Cancellation of Security for Tax Payment) CHAPTER RELATIONS BETWEEN NATIONAL TAXES AND COMMON OBLIGATIONS

Article 18 (Priority of National Taxes)

Article 18-2 (Scope of Relatives, etc. Colluding in Presumed False Contract) Article 19 (Limits of Secondary Tax Liability of Liquidator, etc.) Article 20 (Scope of Relatives and Other Specially-Related Persons) Article 20-2 Deleted. Article 21 (Limits of Secondary Tax Liability of Juristic Person) Article 22 (Scope of Transfer and Acquisition of Business) Article 23 (Limits of Secondary Tax Liability of Business Transferee) CHAPTER TAXATION

Article 24 (Disposition of Return Violating Jurisdiction) Article 25 (Revised Return of Tax Base)

Article 25-2 (Ex Post Factor Causes)

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Article 25-3 (Request for Revision, etc.)

Article 25-4 (Tax Base Return after Time Limit)

Article 26 (Additional Voluntary Payment)

Article 26-2 (Payment of National Taxes by Credit Card, etc.) Article 27 (Surtax against Non-filed Tax Return)

Article 27-2 (Additional Tax against Understated Tax Return) Article 27-3 (Additional Tax against Over-declared Refundable Tax) Article 27-4 (Additional Tax against Insincere Payment or Refund) Article 28 (Application for Abatement or Exemption of Additional Tax, etc.) Article 29 (Grounds for Exception from Abatement or Exemption upon Filing Revised Tax Return)

Article 29-2 (Limits on Surtax)

CHAPTER REFUNDS OF NATIONAL TAXES AND ADDITIONAL

PAYMENTS ON REFUNDS OF NATIONAL TAXES

Article 30 (Determination of Additional Payment on National Tax Refund) Article 31 (Notice of Appropriation of National Tax Refunds, etc.) Article 32 Deleted. Article 33 (Payment of National Tax Refund, etc.) Article 33-2 (Adjustment between Revenue Accounts of Tax Officers) Article 34 (Payment of Refund of National Tax through Account Transfer) Article 34-2 Deleted. Article 35 (Cash Payment for Refund of National Tax) Article 36 (Refund Notice to Taxpayer)

Article 37 (Procedures for Cash Payment for National Tax Refund) Article 38 (Delivery, etc. of Refund Funds to Postal Service Office) Article 39 (Settlement of Unpaid Funds by Postal Service Office) Articles 40 and 41 Deleted. Article 42 (Assignment of National Tax Refund)

Article 43 (Statement of Account of National Tax Refund Amount) Article 43-2 (Refund of Property Paid in Kind)

CHAPTER EXAMINATION AND ADJUDICATION

SECTION 1 Common Provisions

Article 44 (Scope of Interested Persons with Objection) Article 44-2 (Dispositions Exempted from Objection) Article 45 (Suspension of Execution of Disposition) Article 46 (Application for Inspection of Related Documents) Article 47 (Statement of Opinion)

Article 48 (Notice of Disposition by Commissioner of National Tax Service, etc.) Article 49 (Relief for Mistake in Notice of Objection Method) SECTION 2 Examination

Article 50 (Written Examination Request)

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Article 51 (Request for Examination via Director of Regional Tax Office) Article 52 (Request for Correction)

Article 53 (National Tax Examination Committee)

Article 53-2 (Rectification of Decision)

Article 54 (Application for Objection)

Article 54-2 (Objection Review Committee)

SECTION 3 Adjudication

Article 55 (Request for Adjudication)

Article 55-2 (Required Qualifications of Tax Adjudicators) Article 55-3 (Required Qualifications of Investigators) Article 55-4 (Appointment and Commissioning of Tax Adjudicators) Article 56 (Request for Submission of Defense Materials) Article 57 (Notice of Designation of Tax Adjudicators) Article 58 (Council of Tax Adjudicators)

Article 59 Deleted. Article 60 (Request for Challenge against Tax Adjudicator in Charge) Article 61 (Application for Questioning and Inspection) Article 62 (Small Sum Adjudication)

Article 62-2 (Joint Session of Tax Adjudicators)

Article 63 (Delivery of Decision Papers)

SECTION 4 Rights Of Taxpayers

Article 63-2 (Prevention from Double Investigations) Article 63-3 (Scope of Field Investigation for Tax Disposition) Article 63-4 (Standards for Tax Investigation of Taxpayers Not Subjected to Tax Investigation for Long Time)

Article 63-5 (Exemption of Honest Small Business Proprietors from Tax Investigation) Article 63-6 (Advance Notification of Tax Investigation) Article 63-7 (Application for Postponement of Tax Investigation) Article 63-8 (Notification of Results of Tax Investigation) Article 63-9 (Scope, etc. of Judgment on Propriety before Tax Levying) Article 63-10 (Committee for Judgment on Propriety before Tax Levying) CHAPTER SUPPLEMENTARY PROVISIONS

Article 64 (Report of Designation of Tax Manager) Article 64-2 (Scope of Duties of Tax Manager)

Article 65 (Measures for Changing Tax Manager)

Article 65-2 (Tax Guidance Grant Money)

Article 65-3 (Minimum Level of Amount Notified)

Article 65-4 (Payment of Bounty)

Article 65-5 (Cooperation, etc. in Submission of Tax Data) Article 65-6 Moved to Article 63-6.

Article 65-7 (Information Storage Device Recognizable as Documentary Evidence, and Records and Books)

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Article 65-8 (Delivery of Certificate of Receipt of Documents) Article 66 (Publication of Roll of High and Habitually Delinquent Taxpayers, etc.) Article 67 (Publication of Statistical Data)

CHAPTER GENERAL PROVISIONS

Article 1 (Definition)

The definitions of the terms used in this Decree shall be as determined by the Framework Act on National Taxes (hereinafter referred to as the "Act"). Article 1-2 (Special Cases to Electronic Returns) (1) The term "obstacle prescribed by the Presidential Decree" in Article 5 (3) of the Act means any obstacle that makes an electronic return or payment impossible by a suspension of operation of national tax information and communications networks due to a power failure, a transmission error, an error in programs, or other inevitable causes. (2) The term "documents prescribed by the Presidential Decree" in Article 5-2 (3) of the Act are relevant documents to be submitted at the time of electric return, including a certificate of the receipt of export price, as designated and notified by the Commissioner of the National Tax Service. (3) In extending the term of submission under Article 5-2 (3) of the Act, with respect to such documents as may be necessary for early refund under Article 24 (2) of the Value-Added Tax Act, the extension of the term of submission thereof shall be separately determined and notified by the Commissioner of the National Tax Service.

[This Article Wholly Amended by Presidential Decree No. 17830, Dec. 30, 2002] Article 2 (Extension of Time Limit and Provision of Security) (1) The case falling under any of the following subparagraphs which is deemed by the chief of tax office, shall be regarded as being grounds entitling an extension of the time limit pursuant to Article 6 of the Act:

1. When the taxpayer suffers fire, damage from war, or other calamities, or is robbed;

2. When the taxpayer or a family member who is living together with him is critically ill, or has died and is in mourning; ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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3. When the taxpayer suffers a serious loss to his business or his business is faced with a major crisis (limited to cases of payment); 3-2. When the normal operation of information and communications networks of the Bank of Korea (including its agencies) or a communications agency is impossible due to a power failure, an error of programs or other unavoidable causes;

3-3. When the Commissioner of the National Tax Service deems that it is difficult to pay tax normally due to the holiday of a financial institution (limited to a financial institution which is a national treasury agency or national treasury receipt agency of the Bank of Korea) or a communications agency or other unavoidable causes;

4. When the books and documents are seized or provisionally held by a competent authoritative agency;

5. When a case arises which meets the criteria set by the Commissioner of the National Tax Service on condition that it is accepted as a case for which it is necessary to extend the deadline of tax payment, in consideration of the circumstance, economic condition, etc. of a taxpayer (limited to cases of payment); and

6. When there exists a cause corresponding to subparagraph 1, 2 or 4. (2) The term "when there occur causes as prescribed by the Presidential Decree" in the proviso to Article 6 (2) of the Act means when it falls under paragraph (1) 1, 3-2, and 3-3, or when it falls under a cause corresponding thereto. (3) The provisions of Article 6 of the Act shall apply mutatis mutandis with respect to the extension of the relevant period. Article 2-2 (Extension of Time Limit and Limit of Installment Payment) (1) The extension of time limit under any subparagraph of Article 2 (1) shall be made within three months, and if any cause for such extension of the time limit does not cease to exist, the chief of the competent tax office may re-extend the time limit within the limit of one month.

(2) Notwithstanding the provisions of paragraph (1), the extension of time limit related to a return and payment may be decided by the chief of the competent tax office within the limit not exceeding 9 months.

(3) The time limit and amount of payment in installments during the period of extension under paragraph (2) may be determined by the chief ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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of the competent tax office. In this case, if the extended period exceeds six months, the chief of the competent tax office shall make it possible for a taxpayer to pay an equal amount in installments within three months from the day that six months pass, as the case may be.

[This Article Newly Inserted by Presidential Decree No. 17830, Dec. 30, 2002] Article 3 (Application for Extension of Time Limit) A person who desires to have a time limit extended pursuant to Article 6 of the Act shall apply to the head of the administrative body concerned in writing stating the items of the following subparagraphs by not later than three days prior to the expiration of the time limit. In this case, if the head of the administrative body deems that the person would be unable to file such application not later than three days prior to the expiration of the time limit, he may allow such person to make such application not later than the expiration day of the time limit:

1. The name and domicile or temporary domicile of the person who desires to have the time limit extended;

2. The time limit for which an extension is desired;

3. Cause for desiring an extension; and

4. Other necessary matters. Article 4 (Approval of Extension of Time Limit)

(1) Where the time limit is extended pursuant to Article 6 of the Act, the head of the administrative body shall, without delay, notify the persons concerned by a document stating the items corresponding to each subparagraph of Article 3. Where the application is made under the former part of Article 3, he shall notify the applicant of whether he approves or not before the expiration of the time limit.

(2) The head of the administrative body may, in case where it falls under one of the following subparagraphs, substitute the means of a public notice on the Official Gazette or the daily newspaper for the notification, notwithstanding paragraph (1):

1. Where the cause corresponding to Article 2 (1) 3-2 occurs all at once on a national scale;

2. Where the persons who are subject to the notification of extension of time limit are many and unspecified persons; and

3. Where there exists no time for individual notification of the fact of ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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extension of time limit to the persons subject to it. Article 4-2 (Revocation of Extension of Payment Time Limit) "Grounds prescribed by the Presidential Decree" as referred to in Article 6-2 (1) 3 of the Act means a case where the payment time limit is extended on the grounds falling under Article 2 (1) 3-2 and 3-3, terminating the relevant grounds that makes it possible to pay taxes normally. [This Article Newly Inserted by Presidential Decree No. 18172, Dec. 30, 2003] Article 4-3 (Revocation Notice about Extension of Payment Time Limit) Any notice about the revocation of the extension of the payment time limit provided for in Article 6-2 (2) of the Act shall be served in the form of document containing matters falling under each of the following subparagraphs:

1. The date of revocation; and

2. The grounds of revocation. [This Article Newly Inserted by Presidential Decree No. 18172, Dec. 30, 2003] Article 5 (Reporting of Place to be Served on)

In case of reporting of the place on which a document is served under Article 9 of the Act (including the report of changes), a document stating the items of the following subparagraphs shall be submitted to the head of the administrative body concerned:

1. Name of the taxpayer;

2. Domicile or temporary domicile of the taxpayer, or location of his place of business;

3. Location of the place on which documents are served;

4. Cause for designating a place on which documents are served; and

5. Other necessary matters. Article 5-2 (Scope of Delivery by General Mail)

The term "amount prescribed by the Presidential Decree" in the proviso to Article 10 (2) of the Act means the amount of 500 thousand won. [This Article Newly Inserted by Presidential Decree No. 18172, Dec. 30, 2003] Article 6 (Letter of Service)

The following items shall be entered in the letter of service as referred to in Article 10 (6) of the Act:

1. Title of the document;

2. Name of the recipient of the document;

3. Name of the person who received the document;

4. Place of delivery;

5. Date of delivery; and ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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6. Main contents of the document. Article 6-2 (Application for Electronic Service)

(1) Any person who intends to file an application for electronic service under Article 10 (8) of the Act or to withdraw such application shall submit to the head of the competent tax office a document stating the following matters:

1. Matters relating to identity of a taxpayer, including his name and citizen registration number;

2. Address or location of the principal office and place of business of a taxpayer;

3. Electronic mail address or point of contact for electronic service of information;

4. Method of notice on, and reasons for applying for (or withdrawing), electronic service; and

5. Any other matter prescribed by Ordinance of the Ministry of Strategy and Finance.

(2) The initiation and withdrawal of electronic service shall apply beginning with the day following the date of receiving an application filed under paragraph (1).

(3) Where any person who has withdrawn an application for electronic service intends to file a new application therefor, he may do so at least thirty days after the date of application for such withdrawal. [This Article Newly Inserted by Presidential Decree No. 17830, Dec. 30, 2002] Article 6-3 (Causes to Make Electronic Service Impossible) The term "cause prescribed by the Presidential Decree" in Article 10 (9) of the Act means any case which falls under any of the following subparagraphs:

1. Where it is impossible to render electronic service due to any obstacle to information and communications networks; and

2. Other cases where it is impossible to render electronic service, as prescribed by the Commissioner of the National Tax Service. [This Article Newly Inserted by Presidential Decree No. 17830, Dec. 30, 2002] Article 6-4 (Scope of Documents to be Provided through Electronic Service) (1) The documents to be provided through electronic service under Article 10 (10) of the Act shall be limited to notifications of tax payment or notices of payment, notices of the amount of refund of national tax, notices of return, and other documents determined by the Commissioner of the National Tax Service.

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(2) Where the Commissioner of the National Tax Service provides by means of electronic service a notification of tax payment, or a notice of payment, and a notice of the amount of refund of national tax among the documents of paragraph (1), he shall make them accessible to the taxpayer concerned through national tax information and communications networks. (3) Where the Commissioner of the National Tax Service provides by means of electronic service, documents other than those described in paragraph (2), he shall serve them on the electronic mail address designated by the taxpayer concerned.

[This Article Newly Inserted by Presidential Decree No. 17830, Dec. 30, 2002] Article 7 (Confirmation of Unknown Address)

The term "cases where his domicile or business office is not ascertainable" in Article 11 (1) 2 of the Act means cases where the domicile or business office cannot be confirmed even by the citizen registration card or corporate registry. Article 7-2 (Service by Public Notification)

The term "cases prescribed by the Presidential Decree" in Article 11 (1) 3 of the Act means cases falling under any of the following subparagraphs:

1. Where it is difficult to serve a document by the time limit for payment because the document served by registered mail was returned due to the addressee's absence; and

2. Where it is difficult to serve a document by the time limit for payment due to the addressee's absence, for all that a tax official visited the taxpayer two or more times to deliver the document.

[This Article Newly Inserted by Presidential Decree No. 15189, Dec. 31, 1996] Article 8 (Application and Approval, etc. of Organization Deemed as Juristic Person)

(1) The representative or manager of an unincorporated association, foundation, or organization (hereinafter referred to as an "unincorporated organization") which desires to obtain approval pursuant to Article 13 (2) of the Act shall submit a document stating the items of the following subparagraphs to the chief of the competent tax office:

1. Title of the organization;

2. Location of its main office;

3. Name and domicile or temporary domicile of its representative or manager;

4. Business purposes;

5. Status of Property; ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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6. Articles of association or provisions relating to the organization and its operations; and

7. Other necessary matters. (2) Where the representative or manager of the unincorporated organization submits a document under paragraph (1), the chief of the competent tax office shall notify the applicant of whether or not he approves, within 10 days from the date of the application.

(3) Where the unincorporated organization has obtained approval pursuant to paragraph (2), a proper number under Article 8 (2) of the Enforcement Decree of the Value-Added Tax Act shall be granted concurrently with such approval: Provided, That this shall not apply where the organization concerned which desires to operate a profit-making business shall make registration of the business under Article 111 of the Corporate Tax Act.

(4) Where the unincorporated organization which has obtained approval under paragraph (2) fails to meet the requirements under any subparagraph of Article 13 (2) of the Act, the chief of the competent tax office shall, without delay, cancel the approval.

[This Article Wholly Amended by Presidential Decree No. 14473, Dec. 31, 1994] Article 9 (Reporting of Representative, etc. of Organization Deemed as Juristic Person)

Where an unincorporated organization which is deemed as a juristic person under Article 13 (1) and (2) of the Act (hereinafter referred to as an "organization deemed as a juristic person") desires to report on the selection or change of its representative or manager under Article 13 (5) of the Act, it shall submit to the chief of the competent tax office the document which includes the name and domicile or temporary domicile of the representative or manager (in cases of a change, the former and current representative or manager), and other necessary matters. [This Article Wholly Amended by Presidential Decree No. 14473, Dec. 31, 1994] Article 10 (Notification of Designation of Representative, etc. of Organization Deemed as Juristic Person)

When a person who performs duties related to national taxes is designated, pursuant to the provisions of Article 13 (6) of the Act, the chief of the competent tax office shall, without delay, notify the organization concerned deemed as a juristic person, in writing stating the items of the following subparagraphs:

1. Name, and domicile or temporary domicile of the person performing ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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the duties related to national taxes;

2. Date of the designation;

3. Grounds for designation; and

4. Other necessary matters. CHAPTER LIABILITY TO PAY TAX

Article 10-2 (Determination of Tax Liability)

The time when an amount of tax is finally determined in accordance with the procedure under the relevant tax-related Act provided for in Article 22 (1) of the Act shall be as follows:

1. For income tax, corporate tax, value-added tax, individual consumption tax, liquor tax, securities transaction tax, education tax, or traffic, energy and environment tax, the time when the tax base and amount of tax are reported to the Government: Provided, That the cases falling under subparagraph 2 shall be excluded;

2. For national taxes which fall under subparagraph 1 and whose tax base and amount of tax are determined by the Government, the time when the Government makes such determination;

2-2. For gross real estate tax, the time when the tax base and amount of tax are determined by the Government: Provided, That it shall be the time when the tax base and amount of tax are reported, in cases where the taxpayer reports the tax base and amount of tax of gross real estate tax to the Government in accordance with Article 16 (3) of the Gross Real Estate Tax Act; and

3. For national taxes, other than those of subparagraphs 1 and 2-2, the time when the tax base and amount of tax of the relevant national taxes are determined by the Government.

[This Article Newly Inserted by Presidential Decree No. 8650, Aug. 20, 1977] Article 11 (Value of Inherited Property)

(1) The term "property acquired by inheritance" in Article 24 (1) of the Act means the values remaining after deducting the total amount of debts and inheritance tax which is either levied or is to be paid due to such inheritance from the total amount of the assets obtained through inheritance. (2) The values of the total amount of assets and the total amount of debts ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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pursuant to the provisions of paragraph (1) shall be appraised by applying mutatis mutandis the provisions of Articles 60 through 66 of the Inheritance Tax and Gift Tax Act. Article 12 (Report on Representative of Heirs)

(1) The report of the representative of heirs under the latter part of Article 24 (2) of the Act shall be made by a document (including electronic documents) in which the name, domicile and residence of the said representative, and other necessary matters are entered, within 30 days after the inheritance concerned commences. (2) When the report as prescribed in the latter part of Article 24 (2) of the Act is not made, the chief of tax office may designate one person, among the heirs, as the representative. In this case, the chief of tax office shall notify it to each heir, without delay, by a document stating such action. Article 12-2 (Scope of False Report, etc. of Inheritance Tax or Gift Tax) "Cases of a false or omitted return as prescribed in the Presidential Decree is made" in Article 26-2 (1) 4 (c) of the Act means cases falling under one of the following subparagraphs:

1. When the fabricated debts are deducted from the value of the inherited or donated property, and reported;

2. When a property is omitted in the report of inherited or donated property, such property not being registered, etc. in the name of the heir or donee, when registering, recording, change of title entry (hereafter in this subparagraph referred to as "registration, etc.") is required for the transfer or exercise of the rights thereon; and

3. When deposits, stocks, bonds, insurance money, or other financial assets are omitted in the report of inherited property or donated property. [This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994] Article 12-3 (Initial Date in Reckoning Exclusion Period for National Taxes) (1) The dates on which national taxes may be levied pursuant to the provisions of Article 26-2 (4) of the Act shall be those set forth in the following subparagraphs:

1. For the national taxes of which tax base and tax amount are reported (excluding the gross real estate tax reported in accordance with Article ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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16 (3) of the Gross Real Estate Tax Act), the date following the report deadline or the deadline for the submission of a written report (hereinafter referred to as the "report deadline for tax base"), relating to the tax base and the tax amount of the national taxes concerned. In this case, the report deadline and the amendment report deadline relating to the periods of interim payments and scheduled report shall not be included in the report deadline for tax base; and

2. For the undue gain tax, gross real estate tax, and stamp tax, the date when the liability to pay such national taxes comes into existence. (2) The dates of the following subparagraphs, notwithstanding the provisions of paragraph (1), shall be dates on which national taxes may be levied:

1. For the national taxes levied upon the tax withholding agents or tax associations, the date following the legal deadline for payment of the amount of the withholding tax concerned or the amount of the tax collected from the tax associations;

2. If the legal deadline for payment, pursuant to the provisions of subparagraph 1, or the report deadline for tax base is extended, the date immediately following such an extended period; and

3. If the tax amount is collected on the grounds of a failure to fulfill obligations, etc. in accordance with deduction, exemption, non-taxation or the application of low tax rates, etc., the day on which the grounds that make it possible to collect the relevant deducted tax amount, etc. accrue (in the case of benefiting any income deduction, it means the tax amount equivalent to the deducted income amount and in the case of benefiting low tax rates, it means the tax amount equivalent to a difference from general tax rates; hereafter in this subparagraph referred to as the "deducted tax amount, etc.").

[This Article Newly Inserted by Presidential Decree No. 11577, Dec. 31, 1984] Article 12-4 (Initial Date in Reckoning Extinctive Prescription of National Taxes)

(1) The term "time when the State may exercise its rights to collect the national tax" in Article 27 (3) of the Act, means the dates of the following subparagraphs:

1. For the reported tax amount concerned, with respect to the national ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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taxes of which tax liability is finally determined by the report of the tax amount and the tax base, the day immediately following the expiration of its legal deadline for report and payment; and

2. For the tax amount concerned, with respect to those of which tax base and tax amount are determined, corrected or occasionally decided and imposed by the Government, the day immediately following the expiration of the deadline for payment by the tax notification. (2) On the dates set forth in the following subparagraphs, notwithstanding the provisions of paragraph (1), the State may exercise its rights to collect national taxes:

1. In case of national taxes collected from taxpayers liable for withholding taxes or tax associations, the next day of the payment deadline notified by a notice of tax payment concerning the amount of the withholding tax concerned or the amount collected by tax associations concerned;

2. In case of stamp taxes, the next day of the payment deadline notified by a notice of tax payment concerning the amount of the stamp tax concerned; and

3. In case the statutory deadline for the payment under paragraph (1) 1 is extended, the next day of such an extended deadline. [This Article Newly Inserted by Presidential Decree No. 11577, Dec. 31, 1984] Article 13 (Appraisal of Security for Tax Payment) (1) The appraisal of security for tax payment pursuant to the provisions of subparagraphs 1 and 2 of Article 30 of the Act shall be in accordance with the following subparagraphs:

1. For the securities having the fact of trade from among the securities listed in the securities market or KOSDAQ market under the Korea Securities and Futures Exchange Act: The final market values announced at the securities market or KOSDAQ market on the day preceding the day they are offered as security; and

2. For other securities than those of subparagraph 1: The values calculated by applying mutatis mutandis the provisions of Article 58 (1) 2 of the Enforcement Decree of the Inheritance Tax and Gift Tax Act on the day preceding the day they are offered as security. ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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(2) The appraisal of security for tax payment, pursuant to the provisions of subparagraph 5 of Article 30 of the Act, shall be in accordance with the following subparagraphs:

1. The values of lands or buildings shall be appraised by applying mutatis mutandis the provisions of Article 61 of the Inheritance Tax and Gift Tax Act; and

2. The values of factory foundations, mining foundations, ships, aircraft, or construction machinery shall be appraised by certified public appraisers pursuant to the Public Notice of Values and Appraisal of Real Estate Act or shall be based on the current base values pursuant to the Local Tax Act.

Article 14 (Offering of Security for Tax Payment) (1) In offering security for tax payment, pursuant to the provisions of Article 31 of the Act, security equivalent to the value of 120 percent (in the case of cash or tax guarantee insurance policy, 110 percent) or more of the national taxes to be paid shall be offered: Provided, That in cases where the national taxes are not finally determined, the security amounts shall be prescribed by the Commissioner of the National Tax Service.

(2) When a taxpayer desires to offer a land, a building, a factory foundation, a mining foundation, a ship, an aircraft, or construction machinery as security for tax payment, the chief of tax office shall investigate whether or not the relevant facts conform to those in the certificate of completion of registration or the registration certificate presented under Article 31 (3) of the Act, and in case it falls under one of the following subparagraphs, the taxpayer shall offer other security:

1. When the offering of a security is either prohibited or restricted, pursuant to Acts and subordinate statutes, except for the case where the offer is made by obtaining permission from the competent administrative agency;

2. When it is deemed that the property cannot attain the purpose of security as the use and profit of the property concerned is restricted, pursuant ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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to Acts and subordinate statutes; and

3. When, other than subparagraphs 1 and 2, it is deemed that the property cannot attain the purpose of security.

(3) A person offering a building, a factory foundation, a mining foundation, a ship, an aircraft, or construction machinery, which has been insured, as security for tax payment, shall submit the fire insurance policy. In such a case, the insured period shall be longer than the period required for security for tax payment by 30 or more days.

(4) The scope of the securities which the chief of tax office confirms to be reliable under Article 29 (3) of the Act, shall be prescribed by the Commissioner of the National Tax Service.

(5) The period of a tax guarantee insurance policy offered as tax security, pursuant to the provisions of Article 31 (2) of the Act, shall be longer than the period required for security for tax payment by 30 or more days: Provided, That in case of a national tax whose deadline for payment is not finally determined, it shall be in accordance with a period prescribed by the Commissioner of the National Tax Service.

(6) For a registration or a record for the establishment of a mortgage under the provisions of Article 31 (3) of the Act, a written request stating the items of the following subparagraphs shall be submitted to the administrative agency concerned:

1. Description of the property;

2. Cause for registration or record, and the date;

3. Purpose of the registration or record;

4. Scope of the mortgage;

5. Registered or recorded holder of the title deed; and

6. Domicile and name of the obligor of the registration or record. Article 15 (Change and Supplementation of Security for Tax Payment) (1) In case a taxpayer applies to change the security already offered for payment, pursuant to the provisions of Article 32 (1) of the Act, if it falls under one of the following subparagraphs, the chief of tax office shall approve such application:

1. When other collateral is offered in replacement of the letter of guarantee ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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of the guarantor;

2. When the offered collateral, because of a change in its value, becomes excessive; and

3. When for the stocks and bonds offered as collateral with redemption period the period of redemption is reached.

(2) An application for approval of changes, pursuant to the provisions of Article 32 (1) of the Act, or either an additional offering of security for tax payment or a request for change of the guarantor, pursuant to the provisions of Article 32 (2) of the Act, shall be made by necessary documents. Article 16 (Payment and Collection through Security for Tax Payment) (1) A person who desires to pay national taxes, additional dues, and disposition fees for arrears by money offered as security for tax payment pursuant to the provisions of Article 33 (1) of the Act shall submit a written application to the chief of the competent tax office. In this case, it shall be regarded that he has paid national taxes, additional dues, and disposition fees for arrears which corresponds to the applied amount.

(2) When the chief of tax office desires to collect national taxes, additional dues, and disposition fees for arrears through security for tax payment, pursuant to the provisions of Article 33 (2) of the Act; if the security for tax payment is money, such money shall be appropriated to the national taxes, additional dues, or disposition fees for arrears concerned; in case the security for tax payment is something other than money, money which is collected or realized under the following subparagraphs shall be appropriated to them:

1. In cases of government bonds, municipal bonds, other stocks and bonds, lands, buildings, factory foundations, mining foundations, ships, aircraft, or construction machinery, they shall be sold pursuant to the procedure for public sale prescribed by the National Tax Collection Act;

2. In cases of tax guarantee insurance policies, the payment of the insurance money shall be requested to the tax guarantee insurer concerned; and

3. In cases of the letters of guarantee for tax payment, they shall be ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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collected from the tax guarantors pursuant to the collection procedures prescribed by the National Tax Collection Act.

(3) When the amount realized from security for tax payment, pursuant to the provisions of paragraph (1), is appropriated to the collectable national taxes, additional dues, and disposition fees for arrears, and remains, it shall be returned to the taxpayer, after distributing it in accordance with the method for disposition of public sale proceeds, prescribed by the National Tax Collection Act.

Article 17 (Cancellation of Security for Tax Payment) (1) A cancellation of security for tax payment, pursuant to the provisions of Article 34 of the Act, shall be carried out by notifying the person who offered such security for tax payment, by a document stating such intent. In this case, when there are relevant documents, submitted in accordance with the offering of security for tax payment, these shall be appended to the cancellation notification.

(2) In case of paragraph (1), when the registration or record of mortgage was requested pursuant to the provisions of Article 14 (6), the cancellation of such registration, or record, of mortgage shall be again requested to the administrative agency concerned, by a document with items stated corresponding to the subparagraphs of the same paragraph of the same Article. CHAPTER RELATIONS BETWEEN

NATIONAL TAXES AND

COMMON OBLIGATIONS

Article 18 (Priority of National Taxes)

(1) Deleted. (2) Proving the fact of having registered or recorded a pledge, a mortgage, or a lease on a deposit basis, pursuant to the provisions of Article 35 (1) 3 of the Act, shall be by the following subparagraphs:

1. A copy of a real estate register;

2. Certification by a notary; ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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3. A document recognized by the chief of tax office as a certification pertaining to the pledge; and

4. A document recognized by the chief of tax office as a certification by public documents or books of financial institutions. (3) When a property related to claims having priority to national taxes, etc. is seized, pursuant to the provisions of Article 35 (1) 4 and 5 of the Act, the chief of tax office shall notify the claimant concerned of such fact, by a document stating the items of the following subparagraphs: Provided, That in case the number of claimants, pursuant to the provisions of Article 35 (1) 5 of the Act, is large, such fact may be notified to a representative appointed by the chief of tax office, and the representative who receives such notification shall, through public notification or a posting, inform the other claimants of such fact:

1. Name, and domicile or temporary domicile of the defaulted taxpayer;

2. The taxation year, items of taxation, amount of tax, and deadline for payment of the national taxes related to the seizure;

3. The location, kind, quantity, and quality of the seized property; and

4. The date of the seizure. (4) With respect to notification of seizure to the holder of provisionally registered title deed, pursuant to the provisions of Article 35 (3) of the Act, the provisions of Article 49 of the Enforcement Decree of the National Tax Collection Act shall be applied mutatis mutandis. Article 18-2 (Scope of Relatives, etc. Colluding in Presumed False Contract) With respect to the scope of relatives or other specially-related persons who are the other contracting parties presumed to have colluded in a false contract, pursuant to the provisions of the latter portion of Article 35 (4) of the Act, the provisions of Article 20 shall apply mutatis mutandis. [This Article Newly Inserted by Presidential Decree No. 13192, Dec. 31, 1990] Article 19 (Limits of Secondary Tax Liability of Liquidator, etc.) The value of the property, pursuant to the provisions of Article 38 (2) of the Act, shall be in accordance with the current market value of the ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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remaining assets concerned, on the day they are distributed or handed over.

Article 20 (Scope of Relatives and Other Specially-Related Persons) "Who is a relative or has other special relation...., as prescribed by the Presidential Decree" in Article 39 (2) of the Act means a person who falls under one of the following subparagraphs: Provided, That in case a stockholder or a partner with limited liability is a woman married into another family, the cases of subparagraphs 9 through 13 shall not apply, and she will be subject to the relationship with her husband's family:

1. A paternal blood relative of not more than six degrees of relationship and the wife of a paternal blood relative of not more than four degrees of relationship;

2. The husband and children of a paternal blood relative of not more than three degrees of relationship;

3. A maternal blood relative of not more than three degrees of relationship and the spouse and children of such person;

4. A paternal blood relative of not more than two degrees of relationship of the wife and the spouse of such a person;

5. Spouse (including a person who is in a de facto marital relationship);

6. A lineal ascendant of the birth parents of an adoptee;

7. A person who enters a family as an adopted child and his spouse, and a lineal descendant of an adoptive family of the person who enters a family as an adopted child;

8. The natural mother of a person born out of wedlock;

9. An employee or other person in an employment relationship;

10. Person sharing a livelihood with a person who maintains his livelihood based on money or other property of a stockholder or a partner with limited liability;

11. In case a stockholder or a partner with limited liability is an individual, a juristic person of which the total of the number of owned stocks or the amount of investments (hereinafter referred to as the "number of owned stocks, etc.") of such a stockholder or partner with limited liability ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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and persons who have a relation as prescribed in subparagraphs 1 through 10 with such a stockholder or partner with limited liability, is 50/100 or more of the total number of the issued stocks or the total amount of investments (hereinafter referred to as the "total number of issued stocks, etc.");

12. In case a stockholder or a partner with limited liability is a juristic person concerned, a juristic person (in case the Government is the stockholder, the Government shall be excluded) 50 per cent or more of the total amount of shares, etc. issued by the juristic person concerned; and a juristic person (in case the Government is the stockholder, the Government shall be excluded) or an individual who owns 50 percent or more of the total amount of shares, etc. issued by the juristic person concerned; and

13. A non-profit juristic person having the stockholder or partner with limited liability, and persons of subparagraphs 1 through 8 related to such a stockholder or partner, as either a majority of its directors, or as its founder: Provided, That it shall be limited to cases where 20 percent or more of the total number of stocks issued by the juristic person concerned is owned by such persons.

Article 20-2 Deleted. Article 21 (Limits of Secondary Tax Liability of Juristic Person) The assessment of the total sum of assets and the total sum of liabilities, pursuant to the provisions of Article 40 (2) of the Act, shall be in accordance with the current market value on the date of the expiration of the time limit for payment of the national taxes concerned (in case of 2 or more national taxes, the national taxes of which deadline arrives later). Article 22 (Scope of Transfer and Acquisition of Business) "A transferee of the business as prescribed by the Presidential Decree" in Article 41 of the Act means a person who has succeeded to all rights (excluding rights related to amounts receivable) and all duties (excluding duties related to unpaid amounts) with respect to such business as a whole. Article 23 (Limits of Secondary Tax Liability of Business Transferee) (1) In case where a transferor of the business under Article 41 (1) of the Act has two or more business places, the secondary tax liability of the person who acquired one of those business places shall be limited to the national ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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taxes, additional dues, and disposition fees for arrears which have been imposed on the business place acquired (in case where there are national taxes, additional dues, and disposition fees for arrears which are common to two or more business places, the amount distributed to the acquired business place is included).

(2) "Value of the transferred property" in Article 41 (2) of the Act means values of the following subparagraphs:

1. In case where the transferee of business either paid an amount or has an amount to be paid to the transferor, that amount; and

2. In case where the amount under subparagraph 1 is either non-existent or uncertain, or is considerably lower in comparison to the market value, the value derived by deducting the total amount of liabilities from the total amount of assets, after appraising such acquired assets and liabilities by applying mutatis mutandis the provisions of Articles 60 through 66 of the Inheritance Tax and Gift Tax Act. CHAPTER TAXATION

Article 24 (Disposition of Return Violating Jurisdiction) (1) As for a return of tax base submitted to the chief of tax office other than the chief of tax office stipulated by Article 43 (1) of the Act, the competent tax office shall be clarified, and the said return shall be submitted to the chief of relevant tax office.

(2) In a case of paragraph (1), after receiving the relevant return of tax base, if it is found that such return falls outside of one's jurisdiction, it shall be forwarded without delay to the chief of competent tax office, and the relevant taxpayer shall be notified by a document stating thereof. Article 25 (Revised Return of Tax Base)

(1) In the revised return of tax base stipulated under Article 45 of the Act, the items of the following subparagraphs shall be entered, and if there are any documents to be attached to the original return of tax base relating to the revised part, the documents containing such revisions shall be attached thereto:

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1. Originally returned tax base and tax amount;

2. Revised return of tax base and tax amount; and

3. Other necessary matters. (2) "Causes as prescribed by the Presidential Decree such as an ommission in the process of tax adjustment" in Article 45 (1) 3 of the Act means a case where the treasury subsidies, etc., construction charges, and the amount corresponding to difference in revaluation of land under Articles 36, 37 and 39 of the Corporate Tax Act, are not concurrently included in the profits and losses in the process of tax adjustment.

(3) Deleted. Article 25-2 (Ex Post Factor Causes)

The term "where any cause prescribed by the Presidential Decree occurs after the legal return term of national taxes" in Article 45-2 (2) 5 of the Act means cases falling under any of the following subparagraphs:

1. When, concerning the original return, decision, or revision, the permission or other disposition of the authorities related to the validity of transactions or actions, etc. which served as bases in the calculation of the tax base and amount of tax, is cancelled;

2. When, concerning the original return, decision, or revision, the contract related to the validity of transactions or actions, etc. which served as bases in the calculation of the tax base and amount of tax, is rescinded, due to the exercise of the right of rescission, or is either cancelled or rescinded due to compelling cause which occurred after the conclusion of the contract concerned;

3. When, concerning the original return, decision, or revision, due to the seizure of books and records and documentary evidence, or other compelling cause, the tax base and amount of tax could not be calculated, but the cause concerned ceases to exist later; and

4. When it falls under other causes similar to subparagraphs 1 through 3. [This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994] Article 25-3 (Request for Revision, etc.)

When a person desires to request a decision or revision pursuant to the provisions of Article 45-2 (1), (2), and (4) of the Act, he shall submit ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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(including a submission via the national tax information and communications networks) a written request for decision or revision, entering the matters of the following subparagraphs:

1. Name and domicile or temporary domicile of the applicant;

2. The tax base and amount of tax before the decision or revision;

3. The tax base and amount of tax after the decision or revision;

4. Grounds for requesting a decision or revision; and

5. Other necessary matters. [This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994] Article 25-4 (Tax Base Return after Time Limit)

(1) Any person who intends to file the a tax base return after the term pursuant to Article 45-3 of the Act shall submit a tax base return after the time limit to the chief of the competent tax office. (2) The provisions of tax-related Acts shall govern a tax base return after the term referred to in Article 45-3 of the Act.

[This Article Newly Inserted by Presidential Decree No. 16622, Dec. 28, 1999] Article 26 (Additional Voluntary Payment)

(1) According to the provisions of Article 46 of the Act, persons making additional national tax payments shall submit an invoice of additional voluntary payment, designated by tax-related Acts, by attaching the invoice of voluntary payment with the revised information of the original invoice of payment appended.

(2) Deleted. Article 26-2 (Payment of National Taxes by Credit Card, etc.) (1) The term "amount prescribed by the Presidential Decree" in Article 46-2 (1) of the Act means two million won (including the amount of a special tax for rural development and education tax and the amount of surtax). In this case, where the amount of tax exceeds two million won, it may be paid by a credit card, debit card, etc. (hereafter referred to as "credit card, etc.") on condition that the tax is a national tax reported by the taxpayer.

(2) The term "national tax payment agency prescribed by the Presidential Decree" in Article 46-2 (1) of the Act means an entity designated as a national tax payment agency under the conditions prescribed by Ordinance ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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of Ministry of Strategy and Finance as an institution which settles payments made by credit card, etc., using information and communications networks. (3) The kinds of national taxes payable by credit card, etc. in accordance with Article 46-2 (1) of the Act are as mentioned in the following subparagraphs, which are national taxes paid by individuals (including a special tax for rural development imposed thereon):

1. Income tax;

2. Value-added tax;

3. Gross real estate tax;

4. Liquor tax; and

5. Individual consumption tax. (4) A national tax payment agency may receive payment agency commissions in return for its service of vicarious processing of taxpayer's payment of national taxes by credit card, etc. under the conditions prescribed by Ordinance of the Ministry of Strategy and Finance.

(5) The Commissioner of the National Tax Service may prescribe matters necessary for the payment of national taxes by credit card, etc. [This Article Newly Inserted by Presidential Decree No. 20622, Feb. 22, 2008] Enforcement Date: Oct. 1, 2008

Article 27 (Surtax against Non-filed Tax Return)

(1) The term "person subject to double-entry bookkeeping as prescribed by the Presidential Decree" in the proviso to Article 47-2 (1) of the Act means a resident who has an income from leasing a real estate or business income and who is a taxpayer subject to bookkeeping by double entry under Article 160 (3) of the Income Tax Act.

(2) The term "manner prescribed by the Presidential Decree" in the part other than subparagraphs of Article 47-2 (2) of the Act means a manner falling under any of the following subparagraphs:

1. Double bookkeeping or entering false descriptions in account books;

2. Preparing false evidence or false documentation (hereafter referred to as "false evidence or the similar" in this Article);

3. Receiving and accepting false evidence or the similar (applicable only where knowingly receiving and accepting such false evidence or the ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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similar);

4. Destroying account books or records;

5. Hiding assets or fabricating or hiding an income, earnings, acts, or transactions; or

6. Evading a national tax, or committing a fraud with an intention to have a national tax refunded or deducted or any other fraudulent act. (3) The revenue amount, to which Article 47-2 of the Act is applicable, shall be the revenue amount of income falling under either of the following subparagraphs:

1. Private individual: The gross revenue amount of the individual as an income from leasing a real estate or running a business as calculated in accordance with Articles 24 through 26 of the Income Tax; or

2. Corporation: The revenue amount of the corporation which shall be entered on the return on tax base and tax amount of corporate tax in accordance with Article 60 of the Corporate Tax Act. (4) The unjustly non-filed revenue amount, to which the proviso of Article 47-2 (2) 1 of the Act is applicable, shall be calculated by adding up the revenue amounts non-filed in any fraudulent manner as set forth in subparagraphs of paragraph (2).

(5) In applying Article 47-2 (2) of the Act, the proportion under either of the following subparagraphs shall be deemed as 1 if it is greater than 1, while such a proportion shall be deemed as zero if it is below the decimal point:

1. Proportion of the unjustly non-filed tax base out of the tax base to the tax base; or

2. Proportion of the amount equivalent to the tax base from which unjustly non-filed tax base out of the tax base is subtracted to the tax base. [This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007] Article 27-2 (Additional Tax against Understated Tax Return) (1) The understated tax base, to which Article 47-3 of the Act is applicable, shall be limited to the difference between the tax base that shall be reported in accordance with tax-related Acts and the tax base that a taxpayer actually declared. In this case, it shall be deemed that there is no deficit or refundable tax amount in calculation of the tax base understated if a tax return as filed declares that there is a deficit in the tax base for income tax or corporate tax or there is a tax amount refundable in the tax base for value-added ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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tax.

(2) In case where the proviso of Article 47-3 (2) 1 of the Act is applicable, the revenue amount unjustly understated shall be calculated by adding up the revenue amounts understated in any unjust manner set forth in subparagraphs of Article 27 (2).

(3) In applying Article 47-3 (1) and (2) of the Act, a proportion under either of the following subparagraphs shall be deemed as 1 if it is greater than 1, while such a proportion shall be deemed as zero if it is below the decimal point:

1. Proportion of the amount equivalent to the understated tax base to the tax base (which means the amount calculated by adding the deficit amount declared or the refundable tax amount to the tax base, in case where a tax return declares that there is a deficit in reporting the tax base of income tax or corporate tax or that there is a refundable tax amount in reporting the tax base of value-added tax; hereafter the same shall apply in this paragraph);

2. Proportion of the unjustly understated tax base out of the tax base to the tax base; or

3. Proportion of the tax base calculated by subtracting the amount equivalent to the understated tax base from the amount equivalent to the understated tax base to the tax base.

[This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007] Article 27-3 (Additional Tax against Over-declared Refundable Tax) (1) In case where Article 47-4 of the Act is applicable, the over-declared refundable tax amount shall be limited to the difference between the refundable tax amount declared by the taxpayer and the refundable tax amount that shall be declared in accordance tax-related Acts. (2) The refundable tax amount over-declared in an unjust manner out of the over-declared refundable tax amount under Article 47-4 (2) 1 of the Act shall be determined by multiplying the refundable tax amount declared by the taxpayer by the proportion prescribed in Article 27-2 (3)

2. In this case, the proportion shall be deemed as 1 if it is greater than 1, while it shall be deemed as zero if it is below the decimal point. (3) The tax amount, excepting the refundable tax amount over-declared in an unjust manner out of the over-declared refundable tax amount under ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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Article 47-4 (2) 2 of the Act shall be determined by multiplying the refundable tax amount declared by the taxpayer by the proportion prescribed in Article 27-2 (3) 3. In this case, the proportion shall be deemed as 1 if it is greater than 1, while it shall be deemed as zero if it is below the decimal point. [This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007] Article 27-4 (Additional Tax against Insincere Payment or Refund) "Interest rate prescribed by the Presidential Decree" in Article 47-5 (1) or (2) of the Act means the rate of 3/10000 per day. [This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007] Article 28 (Application for Abatement or Exemption of Additional Tax, etc.)

(1) A person who desires to have an additional tax abated or exempted in accordance with Article 48 (1) or (2) of the Act shall file an application stating the following matters with the chief of the competent tax office (including the chief of the competent customs office or the head of the competent local government; hereafter the same shall apply in this Article):

1. Items of taxation, year of imposition of national tax related to the additional dues to be exempted or abated and type and amount of additional dues; and

2. The reason for failure to perform the duty (limited to the case of Article 48 (1) of the Act).

(2) In case of paragraph (1), if there are documents evidencing reasons stated in subparagraph 2 of the said paragraph, it shall be submitted. (3) The chief of the competent tax office shall, upon receiving an application under paragraph (1), notify the applicant of whether the application is approved or disapproved.

Article 29 (Grounds for Exception from Abatement or Exemption upon Filing Revised Tax Return)

The term "cases where he files the revised return of tax base with a prior knowledge that the initial tax base and amount would be rectified" in Article 48 (2) 1 of the Act means cases where a taxpayer files a revised tax base return, knowing that the tax officials have initiated an investigation into the national tax in question.

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[This Article Wholly Amended by Presidential Decree No. 19893, Feb. 28, 2007] Article 29-2 (Limits on Surtax)

(1) The limits on surtax under Article 49 (1) of the Act shall be classified in accordance with the substance of the obligations imposed by tax-related Acts.

(2) The applicable periods of the limits on surtax under subparagraphs of Article 49 (1) of the Act shall be categorized as follows:

1. The surtax under the Income Tax Act, the Corporate Tax Act, and the Value-Added Tax Act: Shall be categorized by the unit of the taxable period;

2. The surtax under the Inheritance Tax and Gift Tax Act: Shall be categorized by the unit of the period during which the obligations under the said Act shall be fulfilled;

3. The surtax under Article 30-5 (5) of the Restriction of Special Taxation Act: Shall be categorized by the unit of the period during which the obligations under the said Act shall be fulfilled; and

4. The surtax under Article 90-2 (1) of the Restriction of Special Taxation Act: Shall be categorized by the unit of taxable period for income tax. [This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007] CHAPTER REFUNDS OF NATIONAL

TAXES AND ADDITIONAL

PAYMENTS ON REFUNDS OF

NATIONAL TAXES

Article 30 (Determination of Additional Payment on National Tax Refund) (1) When the chief of a tax office intends to appropriate national tax refunds or refund national taxes according to the provisions of Article 51 of the Act, he shall decide the additional payment on the refund of national tax as prescribed in Article 52 of the Act.

(2) The interest rate of additional payments on the refund of national taxes under paragraph (1) shall be the interest rate prescribed by Ordinance of the Ministry of Strategy and Finance in view of the average deposit interest rate for a term deposit with one-year maturity in a commercial bank. NATIONAL TAXES

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No. 17036, Dec. 29, 2000; Presidential Decree No. 20654, Feb. 29, 2008> (3) Deleted. Article 31 (Notice of Appropriation of National Tax Refunds, etc.) Where the chief of a tax office appropriates the refund of national tax (including additional payments on refunds of national tax) to another national tax type, additional dues, or penalties for arrears pursuant to the provisions of Article 51 (2) of the Act, he shall notify the taxpayer in writing thereof. Article 32 Deleted. Article 33 (Payment of National Tax Refund, etc.) (1) The chief of a tax office shall appropriate national tax refunds (including additional payments on refunds of national tax) pursuant to the provisions of Article 51 of the Act. If any fund remain, he shall request the Bank of Korea to pay it to the taxpayer out of the appropriate revenue for the relevant year. (2) The Bank of Korea shall, upon receiving the notification under paragraph (1), without delay take the steps necessary for the refund.

(3) Any claim filed for refund provided for in the latter part of Article 51 (1) of the Act shall be governed by a refund application form prescribed by Ordinance of the Ministry of Strategy and Finance. Article 33-2 (Adjustment between Revenue Accounts of Tax Officers) (1) When the Commissioner of the National Tax Service or the director of a regional tax office recognizes that the revenue of the chief of the competent tax office is or may be insufficient to pay refunds of national tax, upon the request of the chief of tax office concerned, an order may be issued transferring the amount required from the account of the revenue of the chief of another tax office. In this case, the transfer order shall be issued by the order of transfer of revenue and the terms of that order shall also be notified to the chief of tax office that requested such transfer. (2) The head of tax office who received the order referred to in paragraph (1), shall request the amount concerned to be transferred from its revenue account to the revenue account of the head of the other tax office by request of revenue transfer to the Bank of Korea.

(3) Upon receipt of the request referred to in paragraph (2), the Bank ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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of Korea shall transfer the funds without delay and notify the head of tax office concerned thereof.

[This Article Newly Inserted by Presidential Decree No. 8749, Nov. 21, 1977] Article 34 (Payment of Refund of National Tax through Account Transfer) (1) The chief of tax office may pay the refund of national tax by means of account transfer, with respect to the taxpayers who have opened an account with a financial institution or postal service office and reported that account to the chief of tax office.

(2) The chief of tax office shall, where intending to pay the refund of national tax under paragraph (1), forward the request for payment of the national tax refund by means of account transfer (hereinafter referred to as the "request for payment by means of account transfer") to the Bank of Korea or the postal service office.

(3) The Bank of Korea or the postal service office shall, upon receiving the request for payment by means of account transfer, pay the amount necessary for the refund by transferring it to the account of tax payer, and notify the chief of relevant tax office of its details: Provided, That if the payment is impossible due to the unknown account, etc., it shall notify the chief of tax office thereof not later than the day following the date of receiving the request for payment by means of account transfer. (4) The chief of tax office shall, upon receiving the notification under the provisions of paragraph (3) (proviso), verify without delay the account number of tax payer, and again forward the request for payment by means of account transfer to the Bank of Korea or the postal service office: Provided, That the chief of relevant tax office may, where the account number, etc. of tax payer is unknown not later than the time when 30 days have elapsed since the date of receiving the notification under the provisions of paragraph (3) (proviso), pay the refund of national tax by means of cash payment under Article 35.

[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000] Article 34-2 Deleted. Article 35 (Cash Payment for Refund of National Tax) (1) With respect to the taxpayer for whom the refund of national tax may ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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not be made by means of account transfer under Article 34, the chief of tax office may pay it by means of cash payment.

(2) The chief of tax office shall, in case where he pays the refund of national tax under paragraph (1), forward the request for cash payment for refund of national tax (hereinafter referred to as the "request for cash payment") to the postal service office.

(3) The postal service office shall, upon receiving the request for cash payment, pay the refund of national tax to the tax payer under Article 37, and notify the chief of relevant tax office of its details. (4) The chief of tax office may, in case where the tax payer requests the payment by means of account transfer when the procedures for paying the refund of national tax by means of cash payment are in progress, have the refund of national tax paid by means of account transfer under Article

34. [This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000] Article 36 (Refund Notice to Taxpayer)

The chief of tax office shall, in case where he has requested the Bank of Korea or the postal service office to pay the refund of national tax under Articles 34 and 35, forward to the taxpayer the notice of national tax refund, specifying the relevant amount, reasons, method of receipt, place of payment, date of payment request and other necessary matters (hereinafter referred to as the "notice of national tax refund"). [This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000] Article 37 (Procedures for Cash Payment for National Tax Refund) (1) The postal service office shall, where the notice of national tax refund is presented by the taxpayer who relies upon the means of cash payment under Article 35, without delay compare it with the request for cash payment and verify, and then pay it according to the relevant contents: Provided, That this shall not apply to the case where one year has elapsed since the date of requesting the payment which is indicated on the notice of national tax refund.

(2) The postal service office shall, when it pays the national tax refund under paragraph (1), have the tax payer present his resident registration ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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certificate or other identification cards, and verify whether the relevant taxpayer is a lawful title holder.

(3) In the case of paragraph (2), the resident registration number of the recipient shall be entered on the margin of the notice of national tax refund, and have him sign thereon.

(4) For cases falling under the proviso in paragraph (1), when the taxpayer desires to receive the national tax refund, he shall apply to the chief of the competent tax office in writing with indications of the following subparagraphs, along with the notice of national tax refund. In this case, the chief of tax office shall pay the refund by taking again the procedures set forth in this Chapter:

1. The year and amount of the national taxes, additional dues or fees of disposition for arrears that are desired to be refunded; and

2. The reason for failing to receive it until one year has elapsed from receiving the notice of national tax refund.

[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000] Article 38 (Delivery, etc. of Refund Funds to Postal Service Office) The chief of tax office shall, where he forwards the request for payment by means of account transfer or the request for cash payment to the postal service office, go through the Bank of Korea. In this case, the Bank of Korea shall deliver the amount necessary for the refund so as to have the postal service office be able to pay the refund of national tax to the taxpayer.

[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000] Article 39 (Settlement of Unpaid Funds by Postal Service Office) If there are any funds left unpaid within one year from the date of requesting payment by the chief of tax office from among the amount of refund under Article 35, the postal service office shall cancel the relevant payment, and pay it to the revenue of the fiscal year whereto the date of cancellation belongs.

[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000] Articles 40 and 41 Deleted. Article 42 (Assignment of National Tax Refund)

(1) A taxpayer desiring to assign a right for the national tax refund to another party pursuant to Article 53 of the Act, shall request it to the chief of the competent tax office in writing stating the matters of the following ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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subparagraphs before the chief of tax office issues the notice of national tax refund:

1. The name and address of the assignor;

2. The name and address of the assignee; and

3. The description of the rights to be assigned. (2) When there are other national taxes, additional dues, disposition for arrears, to be paid by an assignor, the chief of tax office shall appropriate such national taxes, additional dues and disposition for arrears and the remaining amount shall be assigned without delay upon request. Article 43 (Statement of Account of National Tax Refund Amount) The chief of tax office shall submit to the Chairman of the Board of Audit and Inspection the statement of account of national tax refund amount along with the attesting documents.

[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000] Article 43-2 (Refund of Property Paid in Kind)

(1) Where the property paid in kind is refunded in accordance with the main sentence of Article 51-2 (1) of the Act, it shall be refunded by the chief of the competent tax office according to the order of refund requested by a taxpayer, or in the absence of such request, according to the following:

1. For property paid in kind under the Inheritance Tax and Gift Tax Act: It shall be refunded in the reverse order of the appropriation of property made in accordance with Article 74 (2) of the Enforcement Decree of the Inheritance Tax and Gift Tax Act; and

2. For property paid in kind under the Income Tax Act or the Corporate Tax Act: It shall be refunded with the property paid in kind under Article 112-2 of the Income Tax Act or Article 65 of the Corporate Tax Act.

(2) "Cases as prescribed by the Presidential Decree" in the proviso of Article 51-2 (1) of the Act means any of the following cases:

1. Where it is difficult to refund the property paid in kind by division from its nature;

2. Where the property paid in kind is on hire or being used for other administrative purpose; and

3. Where it is deemed that it is difficult to refund the property paid in kind due to the establishment of a plan for its use, or it is determined ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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by the Commissioner of the National Tax Service.

(3) In making refund under paragraph (1), the expenses disbursed by the State for the maintenance or management of the property paid in kind shall be borne by the State: Provided, That where the State has made a capital outlay under Article 31 (2) of the Enforcement Decree of the Corporate Tax Act with respect to property paid in kind, the expenses therefor shall be borne by the taxpayer concerned.

(4) In making refunds under paragraph (1), the yields (referring to legal and natural yields) generated after the receipt of the property paid in kind shall revert to the National Treasury, not to the taxpayer. [This Article Newly Inserted by Presidential Decree No. 17830, Dec. 30, 2002] CHAPTER EXAMINATION AND

ADJUDICATION

SECTION 1 Common Provisions

Article 44 (Scope of Interested Persons with Objection) The term "interested person prescribed by the Presidential Decree" in Article 55 (2) of the Act means a person who falls under any of the following subparagraphs:

1. A person who receives a notice of payment liable as a secondary taxpayer;

2. A person who receives a notice of payment as a taxpayer responsible for payment in kind pursuant to Article 42 of the Act;

3. A tax surety; and

4. Other persons prescribed by Ordinance of the Ministry of Strategy and Finance.

[This Article Newly Inserted by Presidential Decree No. 15189, Dec. 31, 1996] Article 44-2 (Dispositions Exempted from Objection) The term "disposition which were or shall have been examined and determined or managed by the Commissioner of the National Tax Service" in Article 55 (3) of the Act means any of the following subparagraphs:

1. Disposition according to the decision and investigation of tax base by the Commissioner of the National Tax Service;

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2. Disposition following a corrective order according to the audit's results by the National Tax Service;

3. Disposition according to the result of tax investigation by the National Tax Service;

4. Disposition other than those stated in subparagraphs 1 through 3 following special order of the Commissioner of the National Tax Service; and

5. Disposition required to be peformed by the Commissioner of the National Tax Service according to tax-related Acts.

Article 45 (Suspension of Execution of Disposition) The suspension of execution of disposition set forth in the proviso to Article 57 of the Act shall be limited to the case the applicant for objection, requester of examination or requester of adjudication has suffered a grave accident, and the Government determines that it will take a substantial period of time to investigate.

Article 46 (Application for Inspection of Related Documents) (1) Those who intend to inspect or copy the contents of documents related to an application for an objection, request for examination, or request for adjudication according to the provisions set forth in Article 58 of the Act, may make an oral request to the ruling agency.

(2) The ruling agency in receipt of the request stated in paragraph (1), shall grant the inspection or copy of the documents or verify the conformity of the abstract and the copy with the original.

(3) When the ruling agency in receipt of the request stated in paragraph (1) recognizes the need, it may request the signature of the applicant of the inspection or copy.

Article 47 (Statement of Opinion)

(1) Those who intend to make a statement of opinion according to the provisions set forth in Article 58 of the Act, shall apply to the ruling agency concerned in writing providing the name, address or temporary domicile of the person making the statement and a summary of the terms of the statement.

(2) The ruling agency in receipt of the application referred to in paragraph (1) shall, excluding cases falling under any of the following subparagraphs, determine the date of attendance, place of attendance, and time deemed necessary to make a statement, and notify the applicant three days before the opening date (in cases where an objection is filed, the date of its decision) ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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of the Objection Review Committee, the National Tax Examination Committee, the Council of Tax Adjudicators, or the Joint Session of Tax Adjudicators, thereby providing an opportunity for statement:

1. When the matters of the application for objection, request for examination, request for adjudgment, are minor or when the application or request is made after the expiration of the period; and

2. When the matters of the application for objection, request for examination, request for adjudgment, are pertaining to legal interpretation of Acts and subordinate statutes, and it is determined that the statement of opinion of the applicant is not necessary. (3) In the case of paragraph (2), when it is determined that the statement of opinion is not necessary, the ruling agency shall notify the applicant in writing stating such reasons.

(4) The statement of opinion set forth in Article 58 of the Act shall be simple and, when necessary, evidence and other materials may be attached thereto.

(5) The statement of opinion set forth in paragraph (4), may be substituted with a submission of documents recording the opinion to be stated. Article 48 (Notice of Disposition by Commissioner of National Tax Service, etc.)

When the chief of tax office makes a disposition pursuant to Article 44-2 or by a request for correction under the Board of Audit and Inspection Act, he shall add the purport thereof on the notice of relevant disposition.

Article 49 (Relief for Mistake in Notice of Objection Method) (1) In notifying the method of objection, etc. according to the provisions of Articles 60 of the Act and Article 48 of this Act, if the notice of objection method designates the wrong administrative body to receive objection, when the designated administrative body receives the application or request, it shall be considered that the lawful administrative body has received the concerned application for an objection, request for examination or request for adjudgment.

(2) In the case referred to in paragraph (1), the administrative body that received the application or request due to incorrect notification, shall transfer it to the correct administrative body without delay and notify ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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the concerned applicant or requester of this fact. SECTION 2 Examination

Article 50 (Written Examination Request)

(1) Request for examination shall, via the chief of the competent tax office, be made by a written examination request in which the following matters are entered. In this case, if there is any related documentary evidence or article of evidence, it shall be appended to the written examination request:

1. The address, temporary domicile and name of the requester;

2. The date when the disposition became known (in case that the notice of disposition was received, the date of the receipt);

3. The matters notified or the substance of the disposition; and

4. The reason for objection. (2) When the examination request has been submitted to a chief of tax office other than the chief of tax office referred to in Article 62 (1) of the Act, or the director of a regional tax office or the Commissioner of the National Tax Service, the examination request concerned must be sent to the chief of the competent tax office without delay and must notify the requester concerned of this fact.

Article 51 (Request for Examination via Director of Regional Tax Office) The provisions set forth in Article 44-2 shall be applied mutatis mutandis to the scope of matters that was or should have been investigated, decided or settled by the director of the regional tax office as provided in the proviso of Article 62 (3) of the Act. In this case, the "Commissioner of the National Tax Service" as referred to in the said Article shall be deemed to be the "director of a regional tax office".

Article 52 (Request for Correction)

(1) The request for correction of the substance or procedure of the request for examination under Article 63 (1) of the Act (including cases applicable mutatis mutandis under Article 66 (5) and Article 81 of the Act) shall be made by documents stating matters in the following subparagraphs:

1. The matters to be corrected; ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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2. The reason for request of correction;

3. The period for correction; and

4. Other necessary matters. (2) When the ruling agency makes corrections according to the provisions set forth in the proviso of Article 63 (1) of the Act by its authority, it shall notify the concerned objector, the requester of examination or requester of adjudgment in writing of this fact.

Article 53 (National Tax Examination Committee)

(1) The National Tax Examination Committee provided in Article 64 of the Act, shall consist of thirty-one committee members or less including one Chairman. (2) The Deputy Commissioner of the National Tax Service shall be the Chairman and the members shall be those in the following subparagraphs:

1. Ten persons or less appointed by the Commissioner of the National Tax Service from among Grade public officials under his control or public officials in general service who are members of the Senior Civil Service; and

2. Twenty persons or less commissioned by the Commissioner of the National Tax Service from among the persons of abundant knowledge and experience in the field of law or accounting (excluding a public official who is not a teacher of a national or public university or college as prescribed in Article 14 (2) of the Higher Education Act). (3) The term of office of members referred to in paragraph (2) 2 shall be two years. (4) When the Commissioner of the National Tax Service deems that a member referred to in paragraph (2) 2 is incapable of performing the duties, he may remove the member even during his term of office. (5) The Chairman shall represent the National Tax Examination Committee and shall be in charge of the administration of the Committee. (6) When the Chairman suffers an accident, the person appointed by the Commissioner of the National Tax Service from among the members referred to in paragraph (2) 1 shall take over his duties.

(7) When there is a request for examination, the Chairman shall set a date and call a meeting of the National Tax Examination Committee and preside over it.

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(8) When the Chairman sets the date referred to in paragraph (7), it shall notify each member and the requester for the examination concerned seven days before the set date.

(9) The meetings of the National Tax Examination Committee shall be formed with the Chairman and ten persons designated by the Chairman for each meeting, in which at least six persons specified in paragraph (2) 2 shall be included.

(10) The meeting of the National Tax Examination Committee shall open with the attendance of the majority of the members specified in paragraph (9), and adopt a resolution by an affirmative vote of the majority of the members present. (11) The term "causes determined by the Presidential Decree" in the proviso of Article 64 (1) of the Act means the cases falling under any of the following subparagraphs:

1. When the substance of the request for examination is such a trivial matter as determined by the Commissioner of the National Tax Service through the deliberation of the National Tax Examination Committee; and

2. When the request for examination is made after the expiration of the set date.

(12) Matters resolved through the meeting of the National Tax Examination Committee shall be reported by the Chairman to the Commissioner of the National Tax Service.

(13) Members referred to in paragraph (2) 2 attending the meeting of the National Tax Examination Committee may be paid allowances within the budgetary limit. (14) A secretary shall be appointed by the Commissioner of the National Tax Service from among public officials of Grade or or public officials in general service belonging to the Senior Civil Service of the National Tax Service to handle the administrative affairs of the National Tax Examination Committee. Article 53-2 (Rectification of Decision)

(1) When the Commissioner of the National Tax Service intends to rectify the decision under Article 65-2 of the Act, he shall go through the resolution by the National Tax Examination Committee.

(2) When the Commissioner of the National Tax Service has rectified ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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the decision under paragraph (1), he shall prepare the written rectification and notify without delay the applicant for the examination thereof. [This Article Newly Inserted by Presidential Decree No. 17036, Dec. 29, 2000] Article 54 (Application for Objection)

(1) The provisions of Article 50 shall be applicable mutatis mutandis to the application for an objection.

(2) The provisions of Article 51 shall be applicable mutatis mutandis to the scope of matters to be or to have been investigated, decided or settled by the director of the regional tax office as provided in Article 66 (2) of the Act.

Article 54-2 (Objection Review Committee)

(1) An Objection Review Committee established under a tax office shall be comprised of 15 members or less including one chairman, and the chief of the tax office shall take the chair of the Committee, while the members of the Committee shall be the persons falling under the following subparagraphs:

1. Four persons or less appointed by the chief of a tax office from among the public officials in Grade or under his control; and

2. Ten persons or less commissioned by the chief of a tax office from among persons of profound knowledge and experience in law or accounting.

(2) An Objection Review Committee established under a regional tax office shall be comprised of 22 members or less including one chairman, and the director of the regional tax office shall take the chair of the Committee, while the members of the Committee shall be the persons falling under the following subparagraphs:

1. Six persons or less appointed by the director of a regional tax office from among public officials in Grade or or public officials in general service belonging to the Senior Civil Service; and

2. Fifteen persons or less commissioned by the director of a regional tax office from among persons of profound knowledge and experience in law or accounting.

(3) Meetings of the Objection Review Committee established under a tax office shall be formed with the chairman and six persons designated by the chairman for each meeting, in which at least four persons specified in paragraph (1) 2 shall be included.

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(4) Meetings of the Objection Review Committee established under a regional tax office shall be formed with the chairman and eight persons designated by the chairman for each meeting, in which at least five persons specified in paragraph (2) 2 shall be included.

(5) The tenure of the committee members as prescribed in paragraphs (1) 2 and (2) 2 shall be two years.

(6) The provisions of Article 53 (4) through (8) and (10) through (14) shall apply mutatis mutandis to the dismissal of committee members, the convocation and notification of a meeting, the method of making decisions, the payment of allowances, and the appointment of the secretary of the Objection Review Committee. In this case, "Commissioner of the National Tax Service", "request for examination" and "National Tax Examination Committee" in Article 53 (4) through (8) and (10) through (14) shall be deemed, respectively, as "chief of a tax office or director of a regional tax office", "objection raising" and "Objection Review Committee".

[This Article Newly Inserted by Presidential Decree No. 15968, Dec. 31, 1998] SECTION 3 Adjudication

Article 55 (Request for Adjudication)

(1) The provisions set forth in Article 50 shall apply mutatis mutandis to requests for adjudication.

(2) When a request for adjudication is directly submitted to the Director of the Tax Tribunal without undergoing the chief of a tax office, the said Director shall send a copy of the relevant request for adjudication to the chief of the competent tax office, and notify the applicant of its purport.

(3) The chief of the tax office in receipt of a copy of the request for adjudgment under paragraph (2) shall, pursuant to Article 69 (3) and (4) of the Act, submit a reply note, etc. to the Director of the Tax Tribunal.

Article 55-2 (Required Qualifications of Tax Adjudicators) (1) The tax adjudicator referred to in Article 67 (4) of the Act shall be one with the required qualifications set forth in any of the following subparagraphs: NATIONAL TAXES

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Decree No. 17830, Dec. 30, 2002; Presidential Decree No. 19513, Jun. 12, 2006; Presidential Decree No. 20654, Feb. 29, 2008>

1. A national public official or local public official of Grade or higher or a public official in general service belonging to the Senior Civil Service with service experience for three years or more in duties related to taxes, or a national public official or local public official of Grade or higher with service experience for five years or more;

2. A judge, prosecutor, or military judicial officer with service experience for five years or more;

3. An attorney-at-law, a certified public accountant, a licensed tax account- ant, a licensed customs agent, or a certified public appraiser with service experience for at least six years; and

4. A person holding a position of assistant professor or higher rank in the field of law, accounting, trade, finance, or real estate appraisal in a publicly certified university.

(2) No more than two permanent tax adjudicators and non-permanent tax adjudicators, shall fall under any of the following subparagraphs, respectively:

1. A person who is appointed to the post of tax adjudicator as meeting the career qualifications under paragraph (1) 1, including a period of service in affairs concerning customs duties or local taxes; and

2. A person who is appointed to the post of tax adjudicator with service experience for six years or more as a licensed customs agent or certified public appraiser.

[This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994] Article 55-3 (Required Qualifications of Investigators) (1) The investigators referred to in Article 67 (7) of the Act shall be public officials of Grade or , public officials in general service belonging to the Senior Civil Service, or public officials in contractual service equivalent thereto, with the required qualifications falling under any of the following subparagraphs:

1. A person with service experience of two or more years in national tax (including customs duties) or local tax affairs; and

2. A person who is qualified as an attorney-at-law, certified public accountant, licensed tax accountant, or licensed customs agent. (2) Deleted. [This Article Newly Inserted by Presidential Decree No. 16622, Dec. 28, 1999] ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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Article 55-4 (Appointment and Commissioning of Tax Adjudicators) (1) The Prime Minister may, when recommending the Director or permanent tax adjudicators pursuant to Article 67 (3) of the Act, consider the opinions of the Minister of Strategy and Finance and the Minister of Public Administration and Security.

(2) Non-permanent tax adjudicators required for performing adjudication under Article 67 (3) of the Act shall be commissioned by the Prime Minister at the request of the Director within budgetary limits. [This Article Newly Inserted by Presidential Decree No. 20654, Feb. 29, 2008] Article 56 (Request for Submission of Defense Materials) The request for submission of evidential documents and evidences referred to in Article 71 (2) of the Act shall be made in writing.

Article 57 (Notice of Designation of Tax Adjudicators) When the Director of the Tax Tribunal designates a tax adjudicator in charge according to the provisions of Article 72 (1) of the Act, he shall notify the relevant tax adjudicator and the applicant of the adjudication without delay in writing of such fact. The same shall apply when a tax adjudicator in charge has been replaced. Article 58 (Council of Tax Adjudicators)

(1) through (3) Deleted. (4) One secretary shall be appointed by the Director of the Tax Tribunal from among investigators to handle the relevant administrative affairs of the Council of Tax Adjudicators. Article 59 Deleted. Article 60 (Request for Challenge against Tax Adjudicator in Charge) A request for challenge against a tax adjudicator in charge provided for in Article 74 (1) of the Act shall be made in writing stating the matters of the following subparagraphs, within seven days from the receipt of the notice of designation or change of the tax adjudicator in charge set forth in Article 57:

1. Name of the tax adjudicator in charge being challenged;

2. The reason for challenge; and

3. The date of receipt of the notice of designation or change of the tax adjudicator in charge.

Article 61 (Application for Questioning and Inspection) Application for inspection and questioning provided for in Article 76 (1) ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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of the Act, shall be made within fourteen days from the date of having received notification of designation of the tax adjudicator in charge provided for in Article 57, and by a document with the mentioned items of the following subparagraphs stated therein:

1. Action requested;

2. Grounds for the request; and

3. Other necessary matters. Article 62 (Small Sum Adjudication)

The term "those of which the amount of tax appeals is so small or minor" in the proviso to Article 78 (1) of the Act means those falling under any of the following subparagraphs:

1. Requests for tax appeals, the amount of which is less than 30 million won (10 million won in cases of local taxes), falling under any of the following items:

(a) The matters requested therein do not pertain to the interpretation of Acts and subordinate statutes; and

(b) The matters requested therein pertain to the interpretation of Acts and subordinate statutes and, for a similar request, the Council of Tax Adjudicators has already rendered a decision by resolution; and

2. An adjudication request pertaining to matters other than determination of the tax base and the tax amount and, for a similar request, the Council of Tax Adjudicators has already rendered a decision by resolution. Article 62-2 (Joint Session of Tax Adjudicators)

(1) The term "other causes determined by the Presidential Decree" in Article 78 (2) of the Act means cases falling under any of the following subparagraphs:

1. Where the Director of the Tax Tribunal deems it necessary to examine and decide at the Joint Session of Tax Adjudicators in order to maintain consistency in decisions between the Councils of Tax Adjudicators;

2. Where the Director of the Tax Tribunal deems it necessary to examine and decide at the Joint Session of Tax Adjudicators, as he presumes that the decision on the relevant case of a request for adjudication may have a serious effect on the national tax administration; and

3. Other cases where the Director of the Tax Tribunal deems it necessary to examine and decide at the Joint Session of Tax Adjudicators. (2) The chief tax adjudicator shall, when an examination of a case of request ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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for adjudication is completed at the Council of Tax Adjudicators, notify without delay the Director of the Tax Tribunal of the relevant examination contents so as to cause him to determine whether the relevant case of request for adjudication is the case which has to go through an examination by the Joint Session of Tax Adjudicators pursuant to Article 78 (2) of the Act. (3) The provision of Article 58 (4) shall apply mutatis mutandis to the Joint Session of Tax Adjudicators. In this case, the "Council of Tax Adjudicators" shall be deemed as "Joint Session of Tax Adjudicators."

[This Article Newly Inserted by Presidential Decree No. 16622, Dec. 28, 1999] Article 63 (Delivery of Decision Papers)

The delivery of a decision paper on adjudication to the applicant shall, except for cases where the applicant or his agent directly receives it at the Tax Tribunal, be made by means determined by Ordinance of the Ministry of Strategy and Finance. [This Article Wholly Amended by Presidential Decree No. 16622, Dec. 28, 1999] SECTION 4 Rights Of Taxpayers

Article 63-2 (Prevention from Double Investigations) The term "other cases similar to subparagraphs 1 through 4, as prescribed by the Presidential Decree" in Article 81-4 (2) 5 of the Act means cases falling under any of the following subparagraphs:

1. If a general investigation is undertaken against a person suspected of disturbing the economic order through speculative investment in real estate, cornering and hoarding, undertaking transactions without authentic documentation, etc., leading to evasion of taxes; and

2. Either a reinvestigation for the handling of all kinds of assessment data, or a confirmation investigation for determination of the national tax refund and re-revision without recourse to field investigation for tax disposition pursuant to the provisions of Articles 81-5 and 81-9 of the Act.

[This Article Newly Inserted by Presidential Decree No. 15189, Dec. 31, 1996] Article 63-3 (Scope of Field Investigation for Tax Disposition) The term "field investigation for taxation dispositions prescribed by the Presidential Decree" in Articles 81-5 and 81-9 of the Act means an investigation falling under any of the following subparagraphs: NATIONAL TAXES

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2007>

1. Investigation of violation incident;

2. Investigation conducted to determine and correct the tax base and amount of tax of national taxes; and

3. Deleted. [This Article Newly Inserted by Presidential Decree No. 15189, Dec. 31, 1996] Article 63-4 (Standards for Tax Investigation of Taxpayers Not Subjected to Tax Investigation for Long Time)

The tax investigation under Article 81-6 (1) 2 of the Act shall be conducted according to the standards as set by the Commissioner of the National Tax Service in consideration of the records of tax payment, tax information, etc. of a taxpayer. [This Article Wholly Amended by Presidential Decree No. 17830, Dec. 30, 2002] Article 63-5 (Exemption of Honest Small Business Proprietors from Tax Investigation)

(1) The term "enterpriser the amount of whose revenue is not more than that prescribed by the Presidential Decree by the category of business" in Article 81-6 (4) 1 of the Act means a person falling under either of the following subparagraphs:

1. Private individual: A person subject to simple book-keeping as defined in Article 160 (3) of the Income Tax Act; or

2. Corporation: A corporation whose revenue amount that shall be stated in the return on tax base and amount of corporate tax in accordance with Article 60 of the Corporate Tax Act (or the revenue amount converted on a yearly basis if the taxable period is less than one year) is not more than one hundred million won.

(2) The term "enterpriser the entry, etc. in whose account book meets the requirements prescribed by the Presidential Decree" in Article 81-6 (4) 2 of the Act means a business proprietor who meets all the following requirements:

1. Account books shall be kept and maintained by the double-entry book-keeping method so that all the details of transactions can be grasped objectively;

2. He shall acquire the membership of credit card merchant under the Specialized Credit Financial Business Act before the beginning of the taxable year, and shall not commit any act set forth in each item of Article 84-2 (1) 3 of the Act during the corresponding taxable year (applicable only to the business proprietors who are obligated to acquire the membership of cash receipt merchant in accordance with Article 162-3 (1) of the Income Tax Act and Article 117-2 (1) of the Corporate ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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Tax Act);

3. He shall acquire the membership of cash receipt merchants under Article 126-3 of the Restriction of Special Taxation Act before the beginning of the taxable year, and shall not commit any act set forth in each item of Article 84-2 (1) 4 of the Act during the corresponding taxable year (applicable only to the business proprietors who are obligated to acquire the membership of cash receipt merchants in accordance with Article 162-3 (1) of the Income Tax Act and Article 117-2 (1) of the Corporate Tax Act);

4. He shall open and use a banking account for business in accordance with Article 160-5 of the Income Tax Act (applicable only to private individuals);

5. The revenue amount, etc. shall meet the guidelines for return as prescribed and publicly notified by the Commissioner of the National Tax Service, taking into consideration the increase rate of the average revenue amount by business type, etc.;

6. He shall not have any record of having been punished on account of a tax crime during the latest three years as of the end of the statutory time limit on filing a tax return and payment for the corresponding taxable year; and

7. He shall not have any record of default on national taxes as of the end of the statutory time limit on filing a tax return and payment for the corresponding taxable year.

[This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007] Article 63-6 (Advance Notification of Tax Investigation) Where an advance notice relating to a tax investigation is given to a taxpayer or a tax manager pursuant to the provisions of Article 81-7 (1) of the Act, it shall be made by a document with the items of the following subparagraphs stated therein:

1. Name, and domicile or temporary domicile of the taxpayer or the tax manager;

2. Period of investigation;

3. Cause for investigation, and the taxation items subject to the investigation;

4. Deleted; and

5. Other necessary matters. [This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994] Article 63-7 (Application for Postponement of Tax Investigation) ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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(1) "Other matters as prescribed by the Presidential Decree" in Article 81-7 (2) of the Act means causes falling under any of the following subparagraphs:

1. When, owing to a fire or a natural disaster, business is faced with extreme difficulty;

2. When it is judged that, due to sickness or a long-term business trip, etc. of the taxpayer or the tax manager, a tax investigation is difficult;

3. When the books and records, and/or documentary evidence is seized or provisionally held by a competent administrative body; and

4. When there is a cause corresponding to subparagraphs 1 through 3. (2) A person who desires to receive a postponement, pursuant to the provisions of Article 81-7 (2) of the Act, shall submit a document with the items of the following subparagraphs stated therein to the head of the administrative body concerned:

1. Name, and domicile or temporary domicile of the person who desires to receive a postponement of the tax investigation;

2. The desired period of postponement of the tax investigation;

3. Cause for desiring a postponement of the tax investigation; and

4. Other necessary matters. [This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994] Article 63-8 (Notification of Results of Tax Investigation) "Cases as prescribed by the Presidential Decree" in the proviso of Article 81-9 of the Act means cases falling under any of the following subparagraphs:

1. When the business has closed down; and

2. When the tax manager has not been designated, and a domicile or temporary domicile is not set up within the territory of Korea. [This Article Newly Inserted by Presidential Decree No. 15189, Dec. 31, 1996] Article 63-9 (Scope, etc. of Judgment on Propriety before Tax Levying) (1) "Matters as prescribed by the Presidential Decree" in the proviso, other than subparagraphs, of Article 81-12 (1) of the Act means the matters falling under any of the following subparagraphs:

1. Matters for which the authentic interpretation of the Commissioner of the National Tax Service is to be changed or a new interpretation is required with respect to Acts and subordinate statutes;

2. Matters for which a new interpretation is required with respect to ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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the instruction, regulation, public notice, etc. of the Commissioner of the National Tax Service;

3. Matters related to the advance notice of taxation given by the chief of a tax office or the director of a regional tax office as a result of the duties inspection (excluding the corrective measures taken on the spot) by the Commissioner of the National Tax Service on the tax office or the regional tax office; and

4. Matters, not falling under subparagraphs 1 through 3, for which the amount of request for judgment on propriety before tax levying is not less than one billion won.

(2) The term "other advance notice of taxation prescribed by the Presidential Decree" in Article 81-12 (1) 2 of the Act means any of the following subparagraphs:

1. The advance notice of taxation given by the chief of a tax office or the director of a regional tax office as a result of the duties inspection (including the corrective measures taken on the spot) by the director of the regional tax office or the Commissioner of the National Tax Service on the tax office or the regional tax office;

2. The advance notice of taxation given by the chief of a tax office or the director of a regional tax office as a result of the investigation of tax data and the field investigation, of such other person than the taxpayer as confirmed by the field investigation under Article 63-3; and

3. The advance notice of taxation of the tax amount that is not less than 5 million won.

(3) The term "other cases determined by the Presidential Decree" in Article 81-12 (2) 4 of the Act means the case where the counterpart state which has concluded a tax treaty pursuant to the Adjustment of International Taxes Act requests the commencement of procedures mutually agreed upon.

(4) The chief of a tax office, the director of a regional tax office, or the Commissioner of the National Tax Service in receipt of the written request for judgment on propriety before tax levying under Article 81-12 (1) of the Act shall reserve a decision on the tax base and tax amount or a rectified decision thereon until the decision is made pursuant to the provisions of paragraph (3) of the same Article: Provided, That this shall not apply to the case falling under any subparagraph of paragraph (2) of the same Article. ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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[This Article Wholly Amended by Presidential Decree No. 16622, Dec. 28, 1999] Article 63-10 (Committee for Judgment on Propriety before Tax Levying) (1) Deleted. (2) The committees for judgment on propriety before tax levying under Article 81-12 (3) of the Act shall be installed in tax offices, regional tax offices, and the National Tax Service.

(3) The committee for judgment on propriety before tax levying installed in each tax office shall be composed of fifteen members or less including one chairman, and the chief of the tax office shall take the chair of the committee, while the persons of the following subparagraphs shall be appointed as its members:

1. Four persons or less appointed by the chief of the tax office from among the subordinate public officials of Grade or ; and

2. Ten persons or less commissioned by the chief of the tax office from among the persons of abundant learning and experience in the law or accounting.

(4) The committee for judgment on propriety before tax levying installed in each regional tax office shall be composed of twenty-two members or less including one chairman, and the director of the regional tax office shall take the chair of the meeting, while the persons falling under each of the following subparagraphs shall be appointed as its members:

1. Six persons or less appointed by the director of the regional tax office from among the subordinate public officials of Grade or or public officials in general service belonging to the Senior Civil Service; and

2. Fifteen persons or less commissioned by the director of the regional tax office from among the persons of abundant learning and experience in the law or accounting.

(5) The committee for judgment on propriety before tax levying installed in the National Tax Service shall be composed of thirty-one members or less including one chairman, and the Deputy Commissioner of the National Tax Service shall take the chair of the committee, while the persons falling under each of the following subparagraphs shall be appointed as its members: ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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1. Ten persons or less appointed by the Commissioner of the National Tax Service from among Grade public officials under his control or public officials in general service belonging to the Senior Civil Service; and

2. Twenty persons or less commissioned by the Commissioner of the National Tax Service from among the persons of abundant learning and experience in the law or accounting.

(6) The tenure of the members pursuant to paragraphs (3) 2, (4) 2 and (5) 2 shall be two years.

(7) Where the chairman is unable to discharge his duties due to unavoidable reasons, the person falling under any of the following subparagraphs shall act as chairman on his behalf:

1. In case of a tax office or a regional tax office, the person who acts on his behalf from among the subordinate public officials; and

2. In case of the National Tax Service, the person designated by the Commissioner of the National Tax Service.

(8) The meetings of the committee for judgment on propriety before tax levying installed in each tax office shall be formed by the chairman and six persons designated by the chairman for each meeting, in which at least four persons specified in paragraph (3) 2 shall be included.

(9) The meetings of the committee for judgment on propriety before tax levying installed in each regional tax office shall be formed by the chairman and eight persons designated by the chairman for each meeting, in which at least five persons specified in paragraph (4) 2 shall be included.

(10) The meetings of the committee for judgment on propriety before tax levying installed in the National Tax Service shall be formed by the chairman and ten persons designated by the chairman for each meeting, in which at least six persons specified in paragraph (5) 2 shall be included. (11) The Commissioner of the National Tax Service shall prescribe the items to be stated on the request form for a judgment on propriety before tax levying, and necessary matters such as the method of notification of decisions, etc.

(12) The provisions of Article 53 (4), (5), (7), (8) and (10) through (14) shall be applicable mutatis mutandis to the dismissal of members of the committee for judgment on propriety before tax levying, convening the ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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meeting and notice thereof, method of resolution, payment of allowances, appointment of a secretary, etc. In this case, the "Commissioner of the National Tax Service", "request for examination", "National Tax Examination Committee" in Article 53 (4), (5), (7), (8) and (10) through (14) shall be respectively deemed as the "chief of a tax office, the director of a regional tax office, or the Commissioner of the National Tax Service", "request for judgment on propriety before tax levying," and "committee for judgment on propriety before tax levying".

[This Article Newly Inserted by Presidential Decree No. 16622, Dec. 28, 1999] CHAPTER SUPPLEMENTARY PROVISIONS

Article 64 (Report of Designation of Tax Manager) (1) Report of designation of tax manager, pursuant to the provisions of the former part of Article 82 (3) of the Act, shall be submitted to the chief of a tax office by a document with the following details stated therein:

1. Name, and domicile or temporary domicile of the taxpayer;

2. Name, and domicile or temporary domicile of the tax manager; and

3. Reason(s) for designation of tax manager. (2) Report of change of tax manager, pursuant to the provisions of the latter part of Article 82 (3) of the Act, shall be submitted to the chief of a tax office by a document with the following details stated therein:

1. Matters as referred to in paragraph (1) 1 and 2;

2. Name, and domicile or temporary domicile of the tax manager, after the change; and

3. Reason(s) for such change. (3) When the chief of a tax office has designated the manager of assets or business of a taxpayer as a tax manager pursuant to Article 82 (4) of the Act, he shall notify the relevant taxpayer and tax manager of such fact without delay. Article 64-2 (Scope of Duties of Tax Manager)

A tax manager may perform the duties falling under each of the following subparagraphs on behalf of a taxpayer:

1. Making reports, applications, or requests, or preparation and submission of other documents as prescribed by this Act and tax-related Acts;

2. Receipt of documents issued by the chief of a tax office, etc.; and ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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3. Payment of national taxes, etc. or receipt of national tax refunds. [This Article Newly Inserted by Presidential Decree No. 16622, Dec. 28, 1999] Article 65 (Measures for Changing Tax Manager)

(1) When the chief of a tax office deems that a tax manager is unfit, he may, by prescribing a time limit, request the taxpayer to change the tax manager.

(2) When the taxpayer who receives the request under paragraph (1) fails to file a report of change of tax manger within the prescribed time limit, it shall be deemed that no tax manager has been established. Article 65-2 (Tax Guidance Grant Money)

(1) An organization which desires to receive grant money for tax guidance under the provisions of Article 84 (3) of the Act (hereinafter referred to as "grant money") shall submit an application for grant money with the following details stated therein to the Commissioner of the National Tax Service, by January 31 of the year for which such grant money is sought:

1. Title and address of the applicant organization, and the name of its representative;

2. Details of the tax guidance business;

3. Expenditure required in such tax guidance and amount of grant money requested;

4. Period of such tax guidance; and

5. A measure, in the event that the paid grant money falls short of the required expenditure.

(2) Where an organization submits an application for grant money pursuant to paragraph (1), the Commissioner of the National Tax Service shall make a decision on whether or not to pay the requested grant money by the end of February of the year concerned, by taking into account the appropriateness, feasibility, and effect of the business. (3) In making a decision on whether to pay the requested grant money pursuant to the provisions of paragraph (2), the Commissioner of the National Tax Service may attach conditions which it deems necessary in attaining the purposes for payment of the grant money. (4) When the Commissioner of the National Tax Service makes a decision on whether to pay the requested grant money, pursuant to the provisions of paragraph (2), or attaches conditions to granting of the grant money, pursuant to the provisions of paragraph (3), he shall, without delay, notify the applicant for grant money.

(5) An organization which has received grant money shall submit to the Commissioner of the National Tax Service a report on the results of the ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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tax guidance business, by January 20 of the year following the year in which grant money was issued.

(6) When an organization uses the grant money for other purposes or is in violation of the payment conditions on the grant money, the Commissioner of the National Tax Service shall partly or wholly revoke the decision for the payment of the grant money or order the return of the grant money already paid.

(7) Other matters necessary with respect to the application for grant money, and decision, payment, and repayment, etc. of grant money, shall be prescribed by Ordinance of the Ministry of Strategy and Finance. [This Article Newly Inserted by Presidential Decree No. 10696, Dec. 31, 1981] Article 65-3 (Minimum Level of Amount Notified)

The term "amount prescribed by the Presidential Decree" in Article 83 (1) of the Act means 10,000 won.

[This Article Newly Inserted by Presidential Decree No. 11577, Dec. 31, 1984] Article 65-4 (Payment of Bounty)

(1) An amount obtained by multiplying the following payment rate by the amount of tax evaded or the amount of tax illegally refunded or deducted (hereafter referred to as the "amount of tax evaded, etc." in this Article) may be paid to anyone falling under Article 84-2 (1) 1 of the Act as a bounty: Provided, That the portion that exceeds one hundred million won shall not be paid:

Amount of Tax Evaded, etc. Payment Rate

Not less than 100 million won to

not more than 1 billion won

5/100

More than 1 billion won to not more

than 2 billion won

50 million won + 3/100 of the

amount exceeding 1 billion won

More than 2 billion won

80 million won + 2/100 of the

amount exceeding 2 billion won

(2) Where a margin of the tax amount accrues on the grounds falling under each of the following subparagraphs, such margin of the tax amount shall not be included in the amount of tax evaded, etc.:

1. Where the margin of the tax amount accrues on the grounds of the ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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difference between the tax accounting and the corporate accounting;

2. Where the margin of the tax amount accrues on the grounds of a mistake in the appraised value provided for in the Inheritance Tax and Gift Tax Act; and

3. Where the margin of the tax amount accrues on the grounds of a mistake in the reversion year of income and transaction, etc. (3) An amount obtained by multiplying the following payment rate by the amount that is collected by means of a report on the concealed property (hereafter referred to as the "collected amount" in this Article) may be paid to the person falling under Article 84-2 (1) 2 of the Act as a bounty: Provided, That the portion that exceeds 100 million won shall not be paid: Collected Amount Payment Rate

Not less than 20 million won to not

more than 200 million won

5/100

More than 200 million won to not

more than 500 million won

10 million won + 3/100 of the

amount that exceeds 200 million

won

More than 500 million won

19 million won + 2/100 of the

amount that exceeds 500 million

won

(4) Fifty thousand won per reported case per person may be paid as bounty to a person who falls under Article 84-2 (1) 3 or 4 of the Act: Provided, That the amount of such bounty to which each person is entitled shall be limited to two million won per year.

(5) The term "amount prescribed by the Presidential Decree" in the proviso to Article 84-2 (1) of the Act means 100 million won in cases of the amount of tax evaded, etc. and 20 million won in cases of the amount collected by means of a report on concealed property. (6) The term "items similar to credit cards, as prescribed by the Presidential Decree" in Article 84-2 (1) 3 (a) of the Act means debit cards and prepaid cards pursuant to the Specialized Credit Financial Business Act. (7) The term "items similar to credit card sales slips, as prescribed by the Presidential Decree" in the proviso other than items of Article 84-2 (1) 3 of the Act means debit card receipts and prepaid card receipts. NATIONAL TAXES

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Feb. 22, 2008>

(8) The term "where a credit card merchant issues a credit card sales slip containing a description different from true facts, as prescribed by the Presidential Decree" in Article 84-2 (1) 3 (b) of the Act means cases where a credit card merchant issues a person, to whom certain goods or services are supplied, a credit card sales slip stating the price of the goods or service more disadvantageous to such person than the price for a transaction by cash (excluding cases where a cash receipt is issued) merely on the ground that it is a transaction by credit card.

(9) Revoking an issued cash receipt against the wishes of the recipient, to whom certain goods or services have been supplied, after issuing it, shall be deemed as refusing to issue a cash receipt under Article 84-2 (1) 4 (a) of the Act.

(10) The term "where a cash receipt merchant issues a cash receipt containing a description different from true details, as prescribed by the Presidential Decree" in Article 84-2 (1) 4 (b) of the Act means cases where a cash receipt merchant issues a cash receipt stating the price of the goods or services differently from the actual price merely on the ground of the issuance of the cash receipt. (11) The term "materials prescribed by the Presidential Decree" in Article 84-2 (2) 3 of the Act means materials falling under any of the following subparagraphs:

1. Materials concerning a tax evasion or accounting fraud involved in illegal tax refund or deduction;

2. Materials concerning the speculative transactions of real estate, including land and housing, which are involved in tax evasion;

3. Materials concerning the smuggling and trafficking drugs involved in tax evasion and detrimental to public safety; and

4. Materials that are reasonably viewed as critical material in light of the circumstances of methods, details and scales, etc., under which taxes are evaded and taxes are illegally refunded or deducted. (12) The term "property prescribed by the Presidential Decree" in Article 84-2 (3) 3 of the Act means real estate that is located in Korea and registered in the name of the defaulter.

(13) Bounty shall be paid after the amount of tax evaded is paid, the period for raising objections or the period for filing lawsuits provided for in Articles ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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55 (6) and (7), 61 and 68 of the Act lapses or a disposition for imposition is determined following the completion of the procedures for raising objections (including procedures for raising objections in administrative review, etc.) and bounty for the reporter of concealed property shall be paid after collecting the amount corresponding to arrears in cash, from the delinquent taxpayer.

(14) A report under Article 84-2 (1) 3 or 4 of the Act shall be made to the chief of the competent tax office, the director of the competent regional tax office, or the Commissioner of the National Tax Service within fifteen days from the day on which an act set forth under any item of the said subparagraph is committed.

(15) A bounty in the amount of one million won may be rewarded to a person who falls under Article 84-2 (1) 5 of the Act for each report made: Provided, That in cases where overlapped reporting on the same case has occurred, it shall be rewarded only to the person who makes the first report, and in cases where it is accepted that a person who runs a business by using another person's name and falls under any of the following subpragraphs has no intention to evade taxes or compulsory execution, a bounty shall not be rewarded:

1. Where he uses the name of his spouse, lineal ascendants, or lineal descendants; and

2. Where he has been registered with comprehensive credit information collection agencies referred to in Article 17 (2) 1 of the Use and Protection of Credit Information Act, since he failed to repay debts within an agreed period of time.

(16) Necessary matters concerning detailed methods, etc. to pay bounties shall be determined by the Commissioner of the National Tax Service.

[This Article Newly Inserted by Presidential Decree No. 18172, Dec. 30, 2003] Article 65-5 (Cooperation, etc. in Submission of Tax Data) (1) Where a person who has a duty to submit tax data, pursuant to the provisions of Article 85 (1) of the Act, and a person who has a duty to report data or statistics related to taxes, pursuant to the provisions of paragraph (2) of the same Article, are operating an electronic computing system, the Commissioner of the National Tax Service may, for the purposes of efficiently executing the administration of national taxes, request the sending of the data concerned through national tax information ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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and communications networks or the submission of the data concerned through electronic record medium, including diskettes and magnetic tapes. (2) A person who receives the request of paragraph (1) shall, unless there exists justifiable cause not to do so, positively respond to such request. [This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994] Article 65-6 Moved to Article 63-6.

Article 65-7 (Information Storage Device Recognizable as Documentary Evidence, and Records and Books)

(1) The term"standards prescribed by the Presidential Decree" in Article 85-3 (3) of the Act means cases falling under the requirements of the following subparagraphs:

1. Either save data or keep records pertaining to the development and operation of electronic computing systems, such as the procedure and method, etc. for modifying, supplementing or erasing such saved data, in connection with the production and use of the information storage device;

2. Either have the data which is saved in an information storage device, in such a way as to be easily verifiable, or have devices and procedures prepared to print such data, and store the data in such a way as to make possible, when necessary, the copying of such data to other information storage devices; and

3. Information storage devices shall cover transaction details and modified matters and be preserved in such a form that the search and use of such transaction details is possible, so as to enable the determination of the tax base and the amount of tax.

(2) The preservation system of electronic records as prescribed in paragraph (1) and other necessary matters shall be determined by the Commissioner of the National Tax Service.

[This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994] Article 65-8 (Delivery of Certificate of Receipt of Documents) (1) The term "other documents prescribed by the Presidential Decree" in Article 85-4 of the Act means documents falling under any of the following subparagraphs:

1. Deleted;

2. Objection applications, written requests for reviews, and written requests for adjudication;

3. Documents with time limits for the submission thereof prescribed by ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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tax-related Acts; and

4. Other documents designated by the Commissioner of the National Tax Service deemed necessary in the protection of taxpayers' rights and interests.

(2) The term "cases prescribed by the Presidential Decree" in the proviso to Article 85-4 of the Act means cases falling under any of the following subparagraphs:

1. When a taxpayer submits a tax base report, etc. by postal service or fax; and

2. When a taxpayer places a tax base report, etc. directly into the designated report box without going through a tax official.

[This Article Newly Inserted by Presidential Decree No. 15189, Dec. 31, 1996] Article 66 (Publication of Roll of High and Habitually Delinquent Taxpayers, etc.)

(1) The term "grounds prescribed by the Presidential Decree" in the proviso other than subparagraphs of Article 85-5 (1) of the Act means cases falling under any of the following subparagraphs:

1. Where not less than 30/100 of arrears are paid; 1-2. Where it is in the stay period after the collection of the amount of tax in arrears is deferred according to a decision to authorize the rehabilitation program pursuant to the provisions of Article 243 of the Debtor Rehabilitation and Bankruptcy Act or the amount of tax in arrears is being paid according to the payment schedule specified in the rehabilitation program; and

2. Where the National Tax Information Disclosure Deliberative Committee (hereafter referred to as the "Committee" in this Article) set up under Article 85-5 (2) of the Act determines that the publication of the roll of high and habitually delinquent taxpayers as not useful and in- appropriate to make such publication, taking into account the current status of their assets, their age and other circumstances, etc. (2) The Vice Commissioner of the National Tax Service shall be the chairman of the Committee and members of the Committee shall be the following persons:

1. Four public officials who are appointed by the Commissioner of the National Tax Service from among public officials in general service belonging to the Senior Civil Service of the National Tax Service; and

2. Six persons who are commissioned by the Commissioner of the National Tax Service from among persons of profound learning and experience ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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in law or accounting.

(3) The term of office for the members of the Committee, who are commissioned under paragraph (2) 2, shall be two years.

(4) Committee meetings shall opened with the attendance of a majority of the total members on the register roll, including the chairman, and resolve with the concurrent vote of a majority of those present. (5) Necessary matters concerning the composition and operation of the Committee, except for the provisions of paragraphs (2) through (4), shall be prescribed by the Commissioner of the National Tax Service. (6) The term "unconscientious donation receiving organizations prescribed by the Presidential Decree" in Article 85-5 (1) 2 of the Act means institutions falling under any of the following subparagraphs from among organizations which have received donations:

1. An organization which has been charged national taxes on at least three occasions during the last two years on the basis of the date of publication of roll, or the aggregate amount of taxes charged is not less than ten million won;

2. An organization which fails to prepare and keep the details of issuance by donators pursuant to Article 160-3 of the Income Tax Act or the details of issuance by donating corporations pursuant to Article 112-2 of the Corporate Tax Act for the last three years on the basis of the date of publication of roll; and

3. An organization which has delivered donation receipts issued differently from the actual amount of donations and identity of a donator (hereafter referred to as a "false receipt" in this Article) on at least five occasions during the last three years on the basis of the date of publication of roll, on the aggregate of the amount issued is not less than fifty million won. (7) Matters to be published at the time of publishing a roll of unconscientious donation receiving organizations shall be the name and representative of the organizations, the number of occasions of being charged national taxes or the amount thereof, the number of occasions of delivering false receipts or the amount thereof, etc.

(8) In the event that taxpayers subject to the publication of their roll are put on notice that they are subject to the publication of their roll in accordance with Article 85-5 (3) of the Act, they shall be urged to pay their taxes in arrears and they shall, if they fall under the grounds of excluding ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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them from the publication of their rolls, be urged to submit explanatory material. (9) If the roll of delinquent taxpayers is published, matters to be published shall be names, firm names (including the names of corporations), ages, occupations, domiciles, items of tax in arrears, payment dates and the sum- mary of taxes in arrears, etc., and if a delinquent taxpayer is a corporation, the name of the representative of such corporation shall also be published. [This Article Newly Inserted by Presidential Decree No. 18172, Dec. 30, 2003] Article 67 (Publication of Statistical Data)

(1) The National Tax Statistics Deliberation Committee established within the National Tax Service pursuant to Article 85-6 (2) of the Act shall be composed of nine committee members as prescribed in the following subparagraphs:

1. Four persons appointed by the Commissioner of the National Tax Service from among public officials in general service under his control, who belong to the Senior Civil Service, or nominated by the Minister of Strategy and Finance and the Commissioner of the National Statistical Office from among public officials in general service under their control, who belong to the Senior Civil Service; and

2. Five persons recommended by the Commissioner of the National Tax Service from among persons of abundant knowledge and experience in the fields of law, statistics, etc. (hereafter referred to as "outside committee members" in this Article).

(2) The term of office of outside committee members shall be two years. (3) The chairperson of the National Tax Statistics Deliberation Committee shall be selected by the Commissioner of the National Tax Service from among outside committee members.

(4) The chairperson of the National Tax Statistics Deliberation Committee shall, when he deems that deliberation by the National Tax Statistics Deliberation Committee is required, such as deliberation of statistical data to be included in the statistical yearbook of national taxes as referred to in Article 85-6 (1) of the Act (hereinafter referred to as "statistical data"), call a meeting, which shall open with the attendance of the majority of members and adopt resolutions by the affirmative vote of the majority of members present.

(5) Allowances may be paid to outside committee members present at meet- ings of the National Tax Statistics Deliberation Committee within budgetary ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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limits.

(6) Where the Commissioner of the National Tax Service has received a request of a relevant standing committee of the National Assembly for the provision of statistical data pursuant to Article 85-6 (3) of the Act, he shall, if the deadline of the submission is not specified, provide such data within ten days from the date of receipt of the request: Provided, That in cases where it is difficult to prepare and provide statistical data within the specified period of time, he may extend the period of time through consultation with a relevant standing committee.

(7) The Commissioner of the National Tax Service shall, if the statistical data requested to be provided by a relevant standing committee pursuant to paragraph (6) are not kept or managed, or able to be produced, issue a notice to the relevant standing committee of the fact, attaching the grounds thereto.

(8) The Commissioner of the National Tax Service shall, in cases where he has provided statistical data to a relevant standing committee pursuant to paragraph (6), deliver the copy thereof to the Minister of Strategy and Finance within 7 days. [This Article Newly Inserted by Presidential Decree No. 20622, Feb. 22, 2008] Enforcement Date: Jan. 1, 2010

ADDENDA

(1) (Enforcement Date) This Decree shall enter into force on the date of the enforcement of Act No. 2679, the Framework Act on National Taxes. (2) (Relations to other Acts and Subordinate Statutes) Where the former provisions of the Enforcement Decree of the National Tax Collection Act have been cited in other Acts and subordinate statutes, and if, among this Decree, any Article and/or clause which falls under such provisions exists, then such citation shall be deemed to have been of the Article and/or clause concerned of this Decree, in place of such provisions.

ADDENDUM This Decree shall enter into force on January 1, 1977. ADDENDUM This Decree shall apply from the date on which the Act on Temporary Measures for Adjustment of the Tax Act by the Implementation of Value-Added Tax ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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enters into force.

ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDUM This Decree shall enter into force on January 1, 1980. ADDENDUM This Decree shall enter into force on January 1, 1981. ADDENDUM This Decree shall enter into force on January 1, 1982. ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on January 1, 1985. Article 2 (Applicability Pertaining to Seizure Notifications with Respect to Creditors over Whom National Taxes Takes Priority) The amended provisions of Article 18 (3) shall be applied from the part of the national taxes of which time limit for payment arrives for the first time, after the enforcement date of this Decree.

Article 3 (Applicability Pertaining to Payment Procedures for Refund of National Taxes Not Requiring Submissions of Certificates of Personal Seal Impressions)

The amended provisions of the proviso of Article 40 (2) shall be applicable to from the part of the national taxes refunded for the first time through the Bank of Korea (local agents of the national treasury included) or a postal service organization after this Decree enters into force. Article 4 Omitted.

ADDENDA (1) (Enforcement Date) This Decree shall enter into force on January 1,

1990. (2) through (5) Omitted.

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ADDENDA (1) (Enforcement Date) This Decree shall enter into force on January 1,

1991. (2) (Applicability Pertaining to Payment Procedures for Refund of National Taxes Not Requiring Submissions of Certificates of Personal Seal Impressions) The amended provisions of the proviso of Article 40 (2) shall be applicable from the part of the national taxes refunded for the first time through the Bank of Korea or a postal service organization, after this Decree enters into force.

(3) (Application Examples Pertaining to Minimum Level of Amount Notified) The amended provisions of Article 65-3 shall be applicable from the part of the national taxes notified for the first time after this Decree enters into force.

ADDENDA (1) (Enforcement Date) This Decree shall enter into force on January 1,

1992. (2) (Application Examples Pertaining to Small Claims Adjudgment) The amended provisions of subparagraph 1 of Article 62 shall be applicable from the first decision made on a request for adjudgment, after this Decree enters into force.

ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDA (1) (Enforcement Date) This Decree shall enter into force on January 1,

1994. (2) (Application Examples Pertaining to Organization Regarded as Juristic Person) With respect to an association, foundation, or other organization registered with the competent authority, prior to the enforcement of this Decree which, is newly regarded as a juristic person, pursuant to the amended provisions of subparagraph 1 of Article 8, in respect of income or conduct etc. of such a juristic person, occurring after the enforcement date of this Decree, such an organization, being regarded as a juristic person from the date ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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on which this Decree enters into force, the Acts and subordinate statutes pertaining to national taxes shall be applicable. ADDENDA (1) (Enforcement Date) This Decree shall enter into force on January 1,

1995. (2) (Application Examples Pertaining to Causes Arising Later) The provisions of Article 25-2 shall be applicable from the first part of the national taxes for ex post factor causes after this Decree enters into force. ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on January 1, 1996. (Proviso Omitted.) Articles 2 through 17 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on January 1, 1996. (Proviso Omitted.) Articles 2 and 3 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. Article 2 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. Article 2 (Application Examples Pertaining to Small Claims Adjudgment) The amended provisions of subparagraph 1 of Article 62 shall be applicable to from the first decision made on a request for adjudgment, after this Decree enters into force.

ADDENDA (1) (Enforcement Date) This Decree shall enter into force on January 1, ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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1997: Provided, That the amended provisions of Article 65-8 shall enter into force on July 1, 1997.

(2) (Application Examples Pertaining to Service by Publication) The amended provisions of Article 7-2 shall be applicable from the first document served after the enforcement of this Decree.

(3) (Application Examples Pertaining to Scope of Interested Parties Who May File Protests) The amended provisions of Article 44 shall be applicable from the part of the national taxes for which an objection application, a written request for review, or a written request for adjudgment is filed for the first time, after this Decree enters into force. ADDENDA (1) (Enforcement Date) This Decree shall enter into force on January 1, 1999. (2) (Application Examples concerning Minimum Level of Amount Notified) The amended provisions of Article 65-3 shall apply to the initial national taxes notified after this Decree enters into force. ADDENDA (1) (Enforcement Date) This Decree shall enter into force on January 1, 2000: Provided, That the amended provisions of Article 1-2 shall enter into force on July 1, 2000, and those of Articles 2 and 4 (2) on the date of its promulgation.

(2) (Examples of General Application to Cases of Request for Adjudgment) The amended provisions of Articles 55 (2) and (3), 61, 62-2, and 63 shall be applicable from the case of request for adjudgment raised first after the enforcement of this Decree.

(3) (Transitional Measures concerning Qualifications of National Tax Judges and Investigators) With respect to national tax judges or investigators who are in active service or commissioned at the time of enforcement of this Decree, the previous provisions shall prevail during their service in the relevant positions, notwithstanding the amended provisions of Articles 55-2 and 55-3.

ADDENDUM This Decree shall enter into force on the date of its promulgation: Provided, That the amendments to Articles 30-2, 32, 33 and 34 through 43 shall enter into force on April 1, 2001.

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ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on September 1, 2001. Article 2 Omitted.

ADDENDA (1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.

(2) (Application Examples Pertaining to Application for Extension of Time Limit) The amended provisions of Article 3 shall apply to the application for extension of time limit which is made on or after the enforcement date of this Decree.

(3) (Application Examples Pertaining to Method of Appraising Security for Tax Payment) The amended provisions of Article 13 shall apply with respect to the security for tax payment which is offered on or after the enforcement date of this Decree.

(4) (Application Examples Pertaining to Refund of Property Paid in Kind) The amended provisions of Article 43-2 shall apply with respect to the application for payment in kind which is made on or after the enforcement date of this Decree.

(5) (Application Examples Pertaining to Request for Judgment on Propriety before Tax Levying) The amended provisions of Article 63-8 (1) and (2) shall apply with respect to the first notice which is given by the chief of a tax office or the director of a regional tax office on or after the enforcement date of this Decree.

ADDENDA (1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.

(2) (Application Example concerning Revocation of Extension of Payment Time Limit) The amended provisions of Article 4-2 shall apply, starting with the portion, the payment time limit of which is extended in accordance with Article 6 of the Act, after the enforcement of this Decree. (3) (Application Example concerning Scope of Delivery by General Mail) The amended provisions of Article 5-2 shall apply, starting with the portion that is delivered first after the enforcement of this Decree. (4) (Application Example concerning Additional Days of National Tax ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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Imposition Exclusion Period) The amended provisions of Article 12-3 (2) 3 shall apply, starting with the portion, for which the grounds of not fulfilling obligations, etc. accrue after the enforcement of this Decree. (5) (Application Example concerning Minimum Notice Amount) The amended provisions of Article 65-3 shall apply, starting with the portion that is put on notice after the enforcement of this Decree.

ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDA (1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 54-2 (1) 2 and (2) 2, and 63-9 (3) 1, (4) 2, and (5) 2 shall enter into force on June 1, 2006.

(2) (Application Example concerning Expansion of Scope of Judgment on Propriety before Tax Levying) The amended provisions of Article 63-8 (2) 3 shall also apply to anyone who receives the advance notice of taxation before this Decree enters into force.

(3) (Transitional Measures concerning Decision to Authorize Rehabilitation Program pursuant to Debtor Rehabilitation and Bankruptcy Act in Amended Provisions of Article 66 (1) 1-2) The decision to authorize the reorganization program pursuant to the previous Company Reorganization Act shall be deemed the decision to authorize the rehabilitation program pursuant to the Debtor Rehabilitation and Bankruptcy Act pursuant to the amended provisions of Article 66 (1) 1-2.

ADDENDA Article 1 (Enforcement Date)

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This Decree shall enter into force on July 1, 2006. Articles 2 through 4 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 1 (limited to the provisions relevant to gross real estate tax), 2-2, and 3 of Article 10-2, the former part of Article 12-3 (1) 1, and Article 12-3 (1) 2 shall enter into force on January 1, 2008, while the amended provisions of Article 53 (1), (2), (9), and (10), Article 54-2 (1) through (4) and (6), Article 63-10 (3) through (5) and (8) through (10) and (12), Article 65-4 (4), (6) through (10) and (14) shall enter into force on July 1, 2007.

Article 2 (Application Example concerning Approval on Extension of Time Limit)

Article 4 as amended shall be enforceable to the applications filed for extension of time limit on or after the enforcement date of this Decree. Article 3 (Application Example concerning Determination of Tax Liability) Subparagraphs 1, 2-2, and 3 of Article 10-2 as amended shall be enforceable to the cases for which tax liability is incurred on or after the enforcement date of this Decree.

Article 4 (Application Example concerning Initial Date of Reckoning Exclusion Period for National Taxes)

Article 12-3 (1) as amended shall be enforceable to the cases for which tax liability is incurred on or after the enforcement date of this Decree. Article 5 (Application Example concerning Commencement Date of Extinctive Prescription of Right to Collect National Tax) Article 12-4 (2) as amended shall be enforceable to the cases for which tax liability is incurred on or after the enforcement date of this Decree. Article 6 (Application Example concerning Application for Abatement of or Exemption from Additional Tax, etc.)

Article 28 (1) and (3) as amended shall be enforceable to the applications filed for abatement, exemption, etc. on or after the enforcement date of this Decree.

Article 7 (Application Example concerning Exemption of Honest Small Business Proprietors from Tax Investigation)

Article 63-5 as amended shall be enforceable to the cases periodically selected for tax investigation pursuant to Article 81-6 (1) of the Act for ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON

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the taxable period on which the enforcement date of this Decree falls or thereafter.

Article 8 (Application Example concerning Payment of Bounty) (1) Article 65-4 (1) and (5) as amended shall be enforceable to the cases where important data are furnished for the first time on or after the enforcement date of this Decree.

(2) Article 65-4 (4) and (6) through (10) and (14) as amended shall be enforceable to the reports made on or after the enforcement date of this Decree.

Article 9 (Transitional Measures for Initial Date in Reckoning Extinctive Prescription of Right to Collect National Taxes)

The initial date reckoning the extinctive prescription of the right to collect national taxes regarding withholding taxes, taxes collected by tax associations, or stamp duties, for which tax liability was incurred before this Decree enters into force, shall be governed by the former provisons, notwithstanding the amended provisions of Article 12-4 (2) 1 through

3. Article 10 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on January 1, 2008. Articles 2 through 7 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 26-2 shall enter into force on October 1, 2008, and the amended provisions of Article 67 on January 1, 2010. Article 2 (Applicability to Payment of National Taxes by Credit Card, etc.) The amended provisions of Article 26-2 shall apply, commencing from the first case reported, paid or notified after October 1, 2008. ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 26-2 shall enter into force on October 1, 2008 and the amended provisions of Article 67 on January 1, 2010. Article 2 (Applicability to Requirements for Qualification of Tax Adjudicators and Investigators)

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The amended provisions of Articles 55-2 (1) 1, 3, and 4, 55-2 (2), 55-3 (1) and 55-4 shall apply, commencing from the tax adjudicator and investigator first appointed or commissioned after this Decree enters into force. Article 3 (Applicability to Small Claims Adjudication Cases) The amended provisions of the parts other than items of subparagraph 1 of Article 62 shall apply, commencing from the first decision of adjudication made after this Decree enters into force.

Article 4 (Special Cases on Requirements for Qualification of Tax Adjudicators)

"Three years" in Article 55-2 (1) 1 shall be "three years (two years in cases of local taxes)" by December 31, 2012.

Article 5 Omitted.


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