Gwangyang City Wins Final Victory in Administrative Lawsuit Over Local Resource Facility Tax

Preserving 2.9 Billion KRW in Local Taxes
through Supreme Court Ruling

Gwangyang City, Jeollanam-do announced on the 17th that it has received a final Supreme Court ruling in its favor regarding the case filed by a local power generation company to cancel the disposition rejecting the amended claim for the local resource facility tax.

Previously, in June 2020, the city rejected the amended claim for the local resource facility tax, and the taxpayer subsequently filed an administrative lawsuit in objection.

Exterior view of Gwangyang City Hall.

In this ruling, the Supreme Court determined that Gwangyang City's rejection of the taxpayer's amended claim regarding the tax base and tax liability for the local resource facility tax on thermal power generation was lawful, and the tax disposition was justified.

During this lawsuit, the city collaborated with the Ministry of the Interior and Safety, which participated as an administrative agency, and local tax experts to thoroughly analyze relevant precedents and develop response strategies for both the appellate and Supreme Court proceedings. As a result of five years of meticulous preparation, the city secured victories in the first and second trials, and ultimately in the Supreme Court, thereby preserving 2.9 billion KRW in local taxes.

Meanwhile, last year, the Taxation Division of Gwangyang City also won all 10 lawsuits related to local taxes (four provincial tax cases and six municipal tax cases), safeguarding a total of 20.2 billion KRW and achieving a 100% winning rate, thereby contributing to the strengthening of local fiscal soundness.

Lee Kanggi, Director of the Taxation Division, emphasized, "Civil servants in charge of local tax litigation face many challenges, such as developing response strategies against lawyers from major law firms or dealing with malicious complaints. However, we will do our utmost to enhance the expertise, consistency, and efficiency of local tax litigation, and ensure fair taxation and tax justice in the face of increasing local tax objections and lawsuits."