(MENAFN) South Korean top court has affirmed the cancellation of part of some 100b won of corporate taxes charged on US private equity fund Lone Star for dividends from its former major stake in a local bank.
The Supreme Court has supported the lower court's ruling that the tax agency should withdraw 38.3b won of corporate taxes on Citibank Korea, Lone Star's trustee bank, of the 103.1b won it has imposed for the shareholder return from Korea Exchange Bank (Hana Bank).
Citibank Korea filed a lawsuit against Seoul's Namdaemun district tax office, claiming that the additional 103.1b won charged was not fair and demanded it be revoked.
The lower courts agreed with the defendant's argument, ruling that the charge was in accordance with the corporate tax law, but ordered the partial amount to be withdrawn because it is fair to apply the tax treaty with the US since a significant number of Lone Star investors are US residents.
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