[Apha Biz=(Chicago) Reporter Paul Lee] Dunamu, the operator of the virtual asset exchange 'Upbit', lost in the first trial of a corporate tax lawsuit worth 25 billion won.
According to legal circles on the 28th, the Seoul Administrative Court Administration Department 4 (senior judge Kim Jung-joong) ruled against Dunamu in a lawsuit filed by Dunamu against the tax authorities to cancel its refusal to revise the corporate tax.
The government revised the Enforcement Decree of the Venture Business Act in October 2018 to exclude "blockchain-based encrypted asset sales and brokerage" from the venture business sector, while Dunamu did not receive tax breaks for venture companies due to the cancellation of confirmation of venture companies from the government in December of the same year.
Then, Dunamu filed an administrative lawsuit worth 25 billion won, saying that the tax reduction should be applied to the 2018 corporate tax.
It cited that the revised special law, which excludes cryptocurrency-related industries from the tax exemption, took effect in January 2019, and that the administrative court temporarily suspended the effect of the cancellation of confirmation of venture companies from Dec. 31, 2018 to Jan. 18 the following year through a lawsuit filed separately by Dunamu.
The court said, "It should not be considered that income tax and corporate tax cuts cannot be applied from the taxable year in which the date of cancellation of the confirmation of venture companies belongs," adding, "There is no room for tax breaks."
Dunamu appealed against the first trial's ruling on June 20, and the second trial is scheduled to be held at the Seoul High Court in October.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
