所得稅法상 損害賠償金의 取扱

Abstract

In case a person receives a compensation for damage from a wrongdoer or a debtor, it is controversial whether the compensation for damage is a taxable income under the Income Tax Act. The current Income Tax Act adopts the schedule system in defining taxable income and it does not have clear provisions on the scope of taxable compensations for damage. Furthermore, there have been continuous arguments about interpretation on whether a compensation paid by a debtor or a wrongdoer for the default of an obligation or an illegal act is an expense under the Income Tax Act.This paper examined whether a compensation for damage that a person receives for others’ illegal act or the default of an obligation is a taxable income under the Income Tax Act and, if it is a taxable income under the Income Tax Act, what type of taxable income it is.Next, This paper examined whether a compensation for damage that a taxpayer pays for the infringement of others’ right in relation to business is an expense.