An Analysis and Evaluation of Duty-tax appeal Cases on the Types and Effects of Price-Discounts Transactions under the Customs Act

This study investigate more than 30 cases of duty-tax appeals searched for 'discount' and It is founded that various discount transactions were acknowledged but denied in some cases. Therefore, discount transactions were classified into recognized types and denied types, and the limitations of legal evaluation and research on them were described. The conclusions of this paper are as follows: First, the types of discount transactions that were recognized respected the intention of the parties and allowed various discount transactions, such as discounts based on bulk purchases. There are some regrets about the types that were denied, such as discounts due to gift cards, etc., but overall it was a valid interpretation. Second, if there is no intention of tax avoidance, it is desirable to go in the direction of recognizing discount transactions between the parties. Although it is a different conclusion from the trial case, it is necessary to recognize the discount of the initial transaction, and to recognize the discount transaction that is recognized as a general transaction method and can be recognized as objective data even if it is not based on the price adjustment agreement. Third, if legislation related to discount transactions is necessary, the minimum criteria for recognition are "(1) it must be confirmed that the discount can be obtained based on the basis of the import declaration, (2) there must be objective data that can confirm the contents of the discount, such as a contract, and (3) the economic rationality of the discount must be recognized.” However, this is only an administrative interpretation of tax appeal cases, and it has the limitation that it is not binding on legal disputes, but I think that analyzing it in a tangible way is meaningful in terms of dispute prevention, and I hope that there will be additional research such as analysis of the types of Supreme Court precedents.