Kim Young-gwon to pay 800 million won in taxes... Loses final appeal at Supreme Court in lawsuit challenging comprehensive income tax assessment, "No country-by-country aggregation of tax credits allowed"

*This content was translated by AI.View Original

Kim Young-gwon (36, Ulsan HD) lost his final appeal at the Supreme Court in a lawsuit seeking to cancel an 800 million won comprehensive income tax assessment against the tax authorities. The Third Division of the Supreme Court dismissed Kim Young-gwon's appeal and upheld the lower court's ruling that ruled against the plaintiff.

Kim Young-gwon played as a professional football player in China from 2012 to 2018, and in Japan from 2019 to 2021. When filing his domestic comprehensive income tax for his period of activity in Japan, he carried over 605 million won in taxes that had not been credited in China because they exceeded the credit limit, and aggregated them with his Japanese income for a combined credit.

The tax authorities argued that foreign tax credits and carryovers must be calculated separately by country, and imposed an additional 830 million won in comprehensive income tax for the 2019–2021 tax years.

Following the first and second instances, the Supreme Court also determined that the tax authorities' action was justified. The court held that carrying over taxes paid in China (approximately 43.9%), a relatively high-tax country, to be aggregated with income from Japan (approximately 20.4%), a low-tax country, for a combined credit contradicted the intent of the tax law to prevent excessive credits.

The claim by Kim Young-gwon's side that he was not a "domestic resident" under the Income Tax Act during his period of activity in Japan was also not accepted. The court concluded that Kim Young-gwon was a resident with an obligation to pay comprehensive income tax, noting that he maintained domestic resident registration while his family resided in Seoul, and that he sent most of the income earned in Japan back to Korea for living expenses.

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*This content was translated by AI.View Original