2. The plaintiff's remaining claims are dismissed.

3. Of the costs of lawsuit, 4/5 shall be borne by the Plaintiff, and the remainder by the Defendant, respectively.

Cheong-gu Office

The Defendant’s disposition imposing KRW 350,904,650 (including additional taxes; hereinafter the same shall apply) on the Plaintiff on October 7, 2014 and KRW 674,761,855 regarding the gift tax on the gift of February 4, 2010 and January 28, 2013 is revoked.

A. On February 4, 2010 and January 28, 2013, the Plaintiff acquired Z special metal (hereinafter “instant company”) shares of 1,000 shares in each of 50 shares in the title of a corporation at issue, a private village of AA (hereinafter “instant company”) and filed a report on capital gains tax with the following content.

B. As a result of the tax investigation on the Plaintiff, the director of the Seoul Regional Tax Office: (a) deemed that the instant shares held in title by AA had been donated to the Plaintiff at a school; and (b) notified the Defendant of the tax data; (c) on October 7, 2014, the Defendant calculated the value of 500 shares (hereinafter referred to as “first shares”) acquired by the Plaintiff on February 4, 2010 as KRW 552,270,232; and (d) KRW 350,904,650 (including penalty tax) of gift tax on the Plaintiff; and (e) KRW 500 shares acquired by the Plaintiff on January 28, 2013 (hereinafter referred to as “second shares”) calculated as KRW 839,916,67 and notified the Plaintiff of the tax data; and (e) determined and notified each of the gift tax amount of KRW 713,893,640 (including penalty tax).

C. On December 30, 2014, the Plaintiff filed an objection with the director of the Seoul Regional Tax Office. On March 12, 2015, the director of the Seoul Regional Tax Office, deeming that the Plaintiff out of the shares of this case, which were transferred on January 28, 2013, assessed an excessive amount of 500 shares, and determined that the tax base and tax amount should be revised accordingly. The Defendant corrected the amount of KRW 39,131,787, out of the imposition of gift tax for the year 2013 as stated in the foregoing paragraph (b) (b) plus the imposition of gift tax for the donation of February 4, 2010, KRW 350,90,650, and the imposition of gift tax for the donation of this case of this case, KRW 674,71,85,89,379,379,5379,5379,5379,579,57,20,5379).

D. On June 18, 2015, the Plaintiff filed an appeal with the Tax Tribunal on the instant disposition, which was dismissed on October 28, 2016.

[Ground of recognition] Facts without dispute, Gap evidence 17, 18, Eul evidence 1, 2, 9 (including each number; hereinafter the same shall apply) and the purport of the whole pleadings

2. Whether each of the dispositions of this case is legitimate

A. The plaintiff's assertion

1) The instant shares were not held in title by AA, but they were acquired and held as promoters at the time of the establishment of the instant company, and the Plaintiff decided to purchase the instant shares at KRW 19,500,000 per share, with a total of KRW 39,000 per share of KRW 19,50,000 per share, and paid the sales amount in substitute by purchasing vehicles at an institution for commercialization. The Plaintiff decided to purchase the instant shares at KRW 25,000 per share of KRW 50,000 per share of KRW 25,00,000 per share, and actually paid to the institution for commercialization. The Defendant’s disposition was unlawful on the premise that the Plaintiff received a donation of the instant shares trusted by AA to the institution for commercialization.

2) Even if the Plaintiff donated the instant shares held in title by the Plaintiff to a commercial title trust, it cannot be deemed that the Plaintiff committed an active unlawful act for tax evasion. As such, the penalty tax on the donation of the instant shares cannot be applied to the Plaintiff regarding the donation of the instant shares.

3) Furthermore, while imposing gift tax on the Plaintiff with respect to the donation of the shares 2 in this case, the Defendant imposed an unfair non-declaration penalty tax on the entire calculated tax amount, which was not deducted from the already paid tax amount, under Article 47-2 of the Framework Act on National Taxes (amended by Act No. 11124, Dec. 31, 201). However, Article 47-2 of the amended Framework Act on National Taxes applies to the portion first donated after January 1, 2012 in accordance with its Addenda. Since the first donation to the Plaintiff was made before January 1, 2012, the Defendant should impose an unfair non-declaration penalty tax on the basis of an amount obtained by subtracting the already paid tax amount from the calculated tax amount pursuant to Article 47-2 of the previous Framework Act on National Taxes (amended by Act No. 11124, Jan. 1, 2012).

B. Relevant statutes

It is as shown in the attached Form.

(c) Fact of recognition;

1) The instant company was established on October 29, 1987 as an unlisted corporation engaged in manufacturing valves, assembly metal products, etc., and seven persons, such as AA, a school-level, and MM, participated as promoters at the time of its establishment.

2) From 2009 to 2013, the details of the instant company’s stock transaction and transfer income tax reporting between the Plaintiff and the shareholders of the instant company are as listed in the following table (the sound portion is related to the instant stocks).

3) From July 8, 2014 to August 16, 2014, the director of the Seoul Regional Tax Office: (a) as a result of the tax investigation with the Plaintiff from July 8, 2014 to August 16, 2014, each of the shares listed in the table in paragraph (2) 1, 2, 4, and 6 are nominally held in trust by AA; (b) it appears that AA donated each share listed in the table 3 and 5 to the Plaintiff; (c) the Plaintiff acquired it at a price lower than the market price and received it at a price lower than the market price; and (d) the Plaintiff deemed that the Plaintiff donated KRW 175 million from AA on February 15, 2013 to the Defendant, and notified the Defendant of the taxation data; and (d) on October 7, 2014, the Defendant determined and notified each gift tax (including additional tax) as indicated in the following table with respect to the Plaintiff (which is related to the shares in this case).

4) On February 4, 2010, a share sales contract (No. 5) was formulated between the Plaintiff and the institution for the settlement of accounts with the intent to purchase KRW 500,000 shares of the instant company owned by the institution for the settlement of accounts (per share of KRW 39,000 per share). On January 28, 2013, a share sales contract (No. 12) was formulated for the Plaintiff to purchase KRW 50,000 shares of the instant company owned by the institution for settlement of accounts (per share of KRW 50,00 per share) to purchase KRW 25,000 shares of the instant company (per share of KRW 50,00 per share) (hereinafter referred to as “each share sales contract”).

5) 원고 명의의 계좌에서 2010. 2. 4. 차량 구입대금 명목으로 19,500,000원이 이체되었는데, 같은 날 차량등록원부에 40거8977 그랜저 차량(이하 '이 사건 그랜저 차량'이라 한다)이 XXX 앞으로 이전등록되었고, 2011. 8. 29. 위 차량의 소유권이 ㅇㅇㅇ에게 이전되었다. 한편 XXX는 이 사건 회사 소유의 26오3623 토요타 차량(이하 '이 사건 토요타 차량'이라 한다)을 아파트 차량으로 등록하였다.

6) The major details of transactions and the major details of the account of an enterprise bank in the name of the national bank bank account in the name of the State bank account opened on December 26, 2012 from December 27, 2012 to February 15, 2013 are as follows, and the said national bank account was terminated on February 18, 2013.

7) The main contents of the literature answer received by a public official in charge in the course of investigating the Plaintiff of the Seoul Regional Tax Office on July 28, 2014 are as follows.

- The developments leading up to the acquisition on February 4, 2010 of the instant franchise vehicle were informed that AA had loaded the said vehicle and transferred the instant 1 share in lieu of the passage of the vehicle.

- There is no separate agreement on the sale and purchase of the shares of this case.

- It was known that no transfer income tax from the transfer of the instant shares was paid, and that it was known that AA was processed, or that it was processed by the instant company by being aware of the fact.

- The instant franchise vehicle was returned to AA because it was difficult to cope with a large amount of oil on board the instant franchise vehicle for more than two to three years, and the vehicle was returned to the Plaintiff, and the vehicle was transferred to the Plaintiff, such as a motor vehicle registration certificate, and the latter was not known, and there was no fact that the vehicle price was paid to the company on August 201 at the time when the vehicle was transferred to the company.

- Vehicles repair costs or oil supply costs have been borne by the Zgas industry for the vehicle retention period, and there is no fact that the person himself/herself bears.

- A national bank account in one’s name was first opened on December 26, 2012, and thereafter deposited total of KRW 228,360,000, and KRW 200 million was deposited to the Plaintiff. The remaining amount was KRW 28,30,000,000, transferred to the corporate bank account in one’s name.

- Retirement allowances of the Zgas industry are 28,300,000 won, and 25 million won, deposited by the Plaintiff on January 28, 2013, are the proceeds from the sale of the Zgas industry’s shares, and 50,760,000 won, paid on December 27, 2012, is the retirement allowances that were not received from the Zgas special metal, and 70 million won, paid on January 28, 2013, was paid as piece pay, and 58,000 won, paid from AA on January 30, 2013, was paid as merit pay.

- On February 4, 2013, remitting KRW 200 million from the national bank account to the Plaintiff on February 4, 2013, the Plaintiff loaned KRW 200 million as it is necessary for the Plaintiff to transfer the house, and the interest was paid after 200 million, and the interest was not required by the principal. The Plaintiff transferred KRW 300,000 per month to the interest, and the global income tax on the interest was known by the company.

- 기업은행 계좌로 AAA으로부터 2013. 2. 1.부터 2013. 2. 15.까지 171,700,000원을 수령한 것으로 나타나는데 2013. 2. 4. 원고에게 대여한 2억 원을 11일 후인 2013. 2. 15. AAA이 대신 반환하여 준다며 본인의 기업은행 계좌에 ㅁㅁㅁ의 입금분을 포함하여 총 171,700,000원을 입금해 주었다.

- The transfer of KRW 200 million to the Plaintiff, while only KRW 171,00,000 from AA was received by the Plaintiff, is not the transfer price of shares to be received by the principal, but the transfer price of shares to be received by the principal.

8) Public officials in charge in the process of investigating the Plaintiff of the Seoul Regional Tax Office on July 23, 2014

ㅇㅇㅇ로부터 받은 문답서의 주요 내용은 아래와 같다.

- The space between the Company’s private States AA and the Company’s domestic knowledge from 37 years ago.

- On July 27, 2009, the share transfer contract between the Plaintiff and the Plaintiff on the shares of the instant company was made to cause a seal imprint stamp on an empty agreement with which the AA had no statement on the certificate of the personal seal impression and its content stated that the transfer of shares was made, and sent the documents in favor of the Plaintiff, stating that this is what it was and what it was not related to the Plaintiff himself/herself, and that it was not related with him/her, and that it was forgotten. However, the sales contract stating that the transaction value of KRW 55 million or the number of shares per 1,000 stock price as of June 26, 2014 was first seen after the receipt of the notice of this inspection. < Amended by Presidential Decree No. 25390, Jun. 27, 2014>

- Without paying the transfer income tax on stock transfer, AA paid the transfer income tax under the name of Yangcheon Tax Office and displayed a receipt. AA can verify the fact that he/she did not receive the transfer income even if he/she paid the transfer income, even if he/she paid the transfer income, even if he/she did not receive the transfer income.

- The Plaintiff’s remittance of KRW 50 million to KRW 28 million on August 6, 2009 and KRW 27 million on August 20, 2009 to KRW 55 million was made by AA to refer to the amount of KRW 30 million on July 16, 2009, and the amount of KRW 28 million on August 6, 2009 was returned to the Plaintiff’s name. AA was the interest on borrowed money on the same day, and transferred KRW 20 million separately under the name of AA to lend KRW 30 million to the Plaintiff, not in the name of the Plaintiff, but in the name of the Plaintiff, the transfer was made to the Plaintiff, and the transfer was made to the Plaintiff, but the transfer was made to the Plaintiff, and the purchase and sale was made to the Plaintiff, but the transfer was made to the Plaintiff, which was the first day.

- On August 20, 2009, the remittance of additional KRW 27 million was made by AA on August 20, 2009 by telephone, and transferred KRW 27 million to AA on August 20, 2009. Among them, the remaining KRW 24 million, excluding KRW 2 million of the previous outstanding amount and KRW 1 million of the cash, and KRW 14 million to HIE. The deposit account number was sent in writing and transferred to HIE account in the name of the wife who was exempted from the remittance next day.

- At the time of the establishment of the instant company, at the time of the establishment of the instant company, the promoters stated that they were to put themselves as shareholders and had been unaware of a few shares in their own name.

- The actual owners of 1000 shares of the instant company under their own name are known to A, and there is no fact that they paid KRW 10 million to the acquisition price of shares at the time of the incorporation of a corporation.

- In 30 years prior to the lending of KRW 10 million to AA, the mail was sent to the effect that the payment of the money was made, and the AA would bring about the instant franchise vehicle owned by the instant company instead of the money, the said vehicle was taken over on August 29, 201.

- The former nominal owner of the instant vehicle is a person working in the instant company in the private village of AA, and the instant vehicle was known to the said company’s vehicle, so, regardless of the nominal owner’s occupation, AA transferred the instant vehicle to the low-income bracket, and there was no fact that the payment was made for44.

9) In the course of the Seoul Regional Tax Office’s tax investigation, AA and the Plaintiff prepared and submitted a written confirmation or statement of the following contents:

AA’s factual confirmation of August 5, 2014

At the time of the establishment of the instant company, I confirm that, under the conditions that the Commercial Act promoters should be composed of seven members, I paid for the following persons among the constituent members of the shareholder registry and reported them to stockholders, and that I donated the instant company’s shares to the Plaintiff.

AA’s factual confirmation of August 14, 2014

본인은 사촌형 XXX에게 2013. 2. 1. 송금한 5,000만 원, 2013. 2. 15.자 총 12,170만원(본인 명의 송금액 7,170만 원, 1,000만 원, 본인의 지인 ㅁㅁㅁ 명의 송금액 4,000만원)은 본인이 운영 중인 법인 등 사업체와 지급한 대가 관계나 지급의무는 없지만 본인의 사업에 장기(30년 이상) 근무하여 도움을 주었고, 법인 근무 후 퇴사할 때 퇴직금을 지급하지 못한 미안하고 고마운 마음에 본인이 개인적으로 지급한 금원임을 확인합니다.

【Plaintiff’s Statement on August 2014

2010. 2. 4. 백부 XXX 명의로 취득한 이 사건 그랜저 차량은 본인의 개인사업인 ZZ가스산업에서 차량대금 1,950만 원을 지급한 ZZ가스산업의 실제 소유 차량으로, 2011. 8. 29. 회사의 채권자인 ㅇㅇㅇ에게 대물변제 형식으로 양도한 시점까지 ZZ가스산업의 사업 소득 계산상 감가상각비 및 차량유지비를 필요경비로 전액 계상한 사실이 있습니다.

/ The plaintiff's factual confirmation of August 8, 2014

The amount of KRW 200,000,000,000,000,000,000 won, which was remitted by AA from the person's capital gains on February 4, 2013, was returned from the person's capital gains on December 27, 2012, and was returned to the person's capital gains on January 28, 2013 by AAA and the amount of KRW 70,00,000,00,000, which was remitted by AA to the person's capital gains on January 28, 2013, and the amount of KRW 25,00,000,000,000,000,000 won was returned from the person's capital gains on January 28, 2013.

10) The details of the Defendant’s imposition of the unjust non-reported penalty tax on the Plaintiff related to the property received by the Plaintiff from AA are as listed below (hereinafter “each of the donations listed in the table below”). In the case of the above 2 and 3 donations, the Defendant considered the calculated tax amount excluding the amount of the gift tax on the property received prior to the date of donation (the amount of property donated prior to the date of donation) pursuant to Article 47-2 of the previous Framework Act on National Taxes as the tax amount subject to additional tax, and imposed the unjust non-reported penalty tax on the Plaintiff. However, with respect to the 4th donation related to the donation of the 2nd shares of this case, the calculated tax amount on the sum of the donated property and the amount of the pre-donation property (the amount of donated property donated prior to the date of donation) as the tax amount subject to additional

[Reasons for Recognition] Unsatisfy, Gap evidence 1, 5 through 13, 16, 17, Eul evidence 1, 6 through 9

Each entry, the purport of the whole pleadings

D. Determination

1) Determination on the assertion that the instant shares were purchased from a trade-related class

In full view of the following circumstances acknowledged by the respective descriptions of the evidence Nos. 3 through 15 and the purport of the entire pleadings, the Plaintiff did not purchase the instant shares from the relevant commercial class, but it is reasonable to deem that the said shares were trusted in title by AA to the relevant commercial class, and that AA was a donation to the Plaintiff. Therefore, this part of the Plaintiff’s assertion is without merit.

① Unless there are special circumstances, such as: (a) if a tax authority received a written confirmation from a taxpayer, etc. to the effect that a certain taxable fact is the person liable for tax investigation, it may not readily deny the value of the evidence of the written confirmation, barring special circumstances, such as that the written confirmation was duly signed and sealed against the will of the originator; or that it is difficult to consider it as the supporting material for the specific fact due to lack of the content thereof; (b) at the time of the Seoul regional tax office’s investigation, AAA made a title trust on the instant stocks to the Plaintiff; (c) the Plaintiff prepared and submitted a written confirmation

② The Plaintiff submitted each share sales contract of this case as evidence to the effect that he actually purchased the instant shares from the perspective of commercialization. However, in the course of the tax investigation of the Seoul Regional Tax Office, he stated that he did not prepare a share sales contract with the Plaintiff at the time of transfer of the instant shares, and that he knows that both the transfer of the instant shares and the report and payment of capital gains tax are dealt with by AAA.

③ 이 사건 토요타 차량은 이 사건 회사 소유 차량에 불과한 점, 이 사건 그랜저 차량이 XXX 명의로 되어 있던 기간에도 XXX가 차량의 수리비나 주유비를 부담한 바 없고, ZZ가스산업의 차량운반구감가상각비명세서에 감가상각자산으로 등재되어 있었던 점, 서울지방국세청의 세무조사 과정에서 XXX는 '이 사건 그랜저 차량을 ZZ가스산업에 반환하였는데 그 과정에서 매매대금을 수령한 사실이 없다'고 진술하였고, XXX로부터 이 사건 그랜저 차량의 소유권을 이전받은 ㅇㅇㅇ도 '위 차량은 ZZ가스산업의 차량으로, XXX와 관계없이 AAA에 대한 채권의 변제 명목으로 위 차량을 취득하였다'고 진술한 점 등을 ZZ할 때, XXX가 이 사건 각 차량을 일정 기간 사용한 것을 넘어 이 사건 제1주식의 매매대금 명목으로 위 각 차량을 실질적으로 취득하였다고 보기 어렵다.

④ XXX는 2013. 2. 4. 원고에게 2억 원을 이체하여 주었는데, 이후 2013. 2. 15. 까지 AAA 및 그 지인인 ㅁㅁㅁ으로부터 합계 1억 7,170만 원만 이체받음으로써 원고가 2013. 1. 28. 이 사건 제2주식의 매매대금 명목으로 XXX에게 지급한 2,500만원 상당을 원고 내지 AAA에게 반환한 결과가 되는 점, 서울지방국세청의 세무조사 과정에서 XXX는 '원고가 이 사건 제2주식 매수대금 명목으로 이체한 2,500만 원은 제가 받아야 될 양도대금이 아니라서 위와 같은 방식으로 반환하였다'고 진술한 점 등 을 ZZ할 때, XXX가 원고로부터 이 사건 제2주식의 매매대금을 실제로 지급받았다고 보기도 어렵다.

2) Determination as to the assertion that the imposition of an unfair non-declaration penalty is illegal

A) The main text of Article 47-2(2) of the Framework Act on National Taxes provides that an amount equivalent to 40/100 of the calculated tax amount under the Income Tax Act shall be the penalty tax in a case where a person fails to file a return of tax base of national tax under the tax law by the statutory due date of return due to "unlawful act". Even if income is derived from a disguised name under the disguised name, if it is an act not related to tax evasion, it cannot be deemed a "unlawful act" only by the nominal name. However, such as avoidance of progressive tax rates, diversification of income, application of special cases concerning reduction and exemption, use of the name of insolvent person who does not pay taxes, etc. Furthermore, if an active act, such as preparation of a false sales contract and false payment of the price, false return of capital gains tax, false registration, false registration, preparation and keeping of a false account book, etc., such act constitutes "unlawful act that makes it impossible or considerably difficult to impose and collect taxes (see Supreme Court Decision 2013Du76767, Dec. 12, 2013).

B) However, according to the overall purport of the above facts and arguments, the Plaintiff was given a donation from AA to purchase the pertinent shares more than twice in the form of purchasing the said shares from the perspective of a title trust. The Plaintiff falsely prepared each share sales contract in order to pretend that the actual purchase was made while taking the form of purchasing the instant shares from the perspective of a title trust. The Plaintiff made a false appearance to purchase the instant shares at a cost of acquiring the shares, or transferred the amount equivalent to the transfer price of the shares to the department of a trade, and received a refund of the said shares. After the transfer of the instant shares to the Plaintiff, it is recognized that the Plaintiff reported and paid the transfer income tax on the transfer of the said shares on behalf of AA after the transfer of the shares to the Plaintiff, and the Plaintiff’s above act is an active act with the intent to evade tax and making it considerably difficult to apply the gift tax and the progressive tax rate, and thus, it is reasonable to deem that the Plaintiff’s above portion of the Plaintiff’s assertion constitutes “unlawful act” as stipulated in the main sentence of Article 47-2(2) of the Framework Act.

3) Determination as to the assertion that the already paid tax amount should be deducted when calculating the unfair non-return tax related to the donation of 2 shares of this case

A) Article 47-2(1) of the revised Framework Act on National Taxes provides that general non-reported additional taxes (the amount equivalent to 20/100 of the calculated tax amount, etc.) and Article 47-2(2) of the revised Framework Act on National Taxes (the amount equivalent to 40/100 of the calculated tax amount, etc.) shall each apply to non-reported additional taxes (the amount equivalent to 40/100 of the calculated tax amount), and Article 47-5 (5) provides that where there is a tax amount prescribed by Presidential Decree (hereinafter referred to as "existing tax amount"), which is paid by deducting the already paid tax amount from the calculated tax amount, etc. In addition, Article 5(4) of the amended Act provides that "Article 47-2 through 47-4 of the Addenda of the Framework Act on National Taxes shall apply to the amended provisions concerning inheritance tax and gift tax from the first inheritance and donation after January 1, 2012."

B) However, as seen earlier, the purport of the additional tax without filing an illegal return under Article 47-2(2) of the revised Framework Act on National Taxes is to impose additional tax at a higher rate than that without filing an illegal return in cases where the tax base, etc. is not filed by unlawful means. It is calculated on the basis of the same calculated tax amount for calculating additional tax without filing an illegal return, but only the rate of additional tax is different. ② Where a second donation is made within 10 years from the previous donation, the donee shall file a return on the aggregate of the value of donated property again on the donated property of the previous donation as a gift tax base. It is difficult to interpret that imposing additional tax on the previous donation may result in imposing double burden on the taxpayer, and that additional tax without filing an illegal return should be calculated on the said portion without deducting the tax amount without filing an additional tax return from the revised tax amount without filing an additional tax return under Article 24 of the revised Framework Act on National Taxes from the revised tax amount without filing an additional tax return without filing an additional tax return without filing an additional tax return with the taxpayer.

4) The revoked portion

A) Ultimately, in calculating the additional tax on the illegal non-declaration on the gift of shares 2 in this case, the amount of the tax calculated excluding the amount of the gift tax on the property (the amount of the gift tax in advance) donated prior to the donation date shall be deemed as the amount of the tax subject to additional tax, and thus, the additional tax on the illegal non-declaration of tax should be imposed. Therefore, the additional tax on the legitimate non-declaration of tax amount is 124,395,199 [=310,987,99 won (=i.e., KRW 793,438,751 won - KRW 482,450,752] x 40%, and less than KRW 40]. Therefore, the justifiable tax amount to be imposed on the Plaintiff in relation to

B) Therefore, the part of the Defendant’s imposition of gift tax of KRW 674,761,855 ( KRW 309,237,99, KRW 317,375,50, KRW 500, KRW 48,356, KRW 356, and KRW 317,375, KRW 50, KRW 124,395, and KRW 199, out of KRW 124,39, KRW 500, which was issued against the Plaintiff on October 7, 2014 should be revoked.

3. Conclusion

Therefore, the plaintiff's claim is accepted within the scope of the above recognition, and the remaining claims are dismissed as it is without merit. It is so decided as per Disposition.

Relevant statutes

director Framework Act on National Taxes (amended by Act No. 10405, Dec. 27, 2010)

(1) Where a taxpayer (excluding a person exempted from liability for tax payment under Article 29 of the Value-Added Tax Act) fails to file a tax base return under the tax-related Acts by the statutory due date of return, the amount of tax calculated under the tax-related Acts (including corporate tax on capital gains from land, etc. under Article 5-2 of the Corporate Tax Act in cases of corporate tax; including the amount to be added under Article 27 or 57 of the Inheritance Tax and Gift Tax Act in cases of inheritance tax and gift tax; and referring to the amount of tax payable under Articles 17 and 26 (2) of the Value-Added Tax Act in cases of value-added tax; hereafter referred to as "amount of tax payable" in this Section) shall be added to the amount of tax payable or deducted from the amount of tax payable: Provided, That where a person subject to double-entry bookkeeping (hereafter referred to as "person subject to double-entry bookkeeping by double-entry bookkeeping" in this Section) or a corporation fails to file a tax base return or corporate tax base return, the amount to be refunded or deducted from the amount of tax payable.

(2) Notwithstanding paragraph (1), if a taxpayer has filed a tax base without filing a return (referring to the amount of tax payable under Articles 17 and 26 (2) of the Value-Added Tax Act in cases of value-added tax; hereafter the same shall apply in this Section) by improper means (referring to any method prescribed by Presidential Decree, which is a violation of his/her duty to return the tax base or amount of national tax on the basis of the concealment or pretending of all or part of the fact that serves as the basis for calculating the tax base or amount of national tax; hereafter the same shall apply in this Section), the aggregate of the

1. Penalty tax on a non-reported tax base by improper means: An amount equivalent to 40/100 of an amount calculated by multiplying the ratio of an amount equivalent to the non-reported tax base by improper means (hereafter in this paragraph, referred to as "non-reported tax base") to the tax base by the calculated tax amount (hereafter in this paragraph, referred to as "additional tax on non-reported return"): Provided, That where a person subject to double-entry bookkeeping or a corporation fails to file a tax base return of income tax or corporate tax, it shall be the larger of an amount calculated by multiplying the amount of penalty tax on non-reported return by 14/10,000 of the amount of income related to the non-reported tax base (hereafter in this

2. The amount of additional tax on the part other than that referred to in subparagraph 1: An amount equivalent to 20/100 of an amount calculated by multiplying the ratio of an amount equivalent to the tax base less the unjustly non-reported tax base out of the tax base to the tax base by the calculated tax amount: Provided, That where a person subject to double-entry bookkeeping or a corporation fails to file a tax base return of income tax or corporate tax, the amount equivalent to 20/100 of an amount calculated by multiplying the ratio of an amount calculated by subtracting the unjustly non-reported tax base from the tax base to the tax base by the ratio of the amount obtained by subtracting the unjustly non

director Framework Act on National Taxes (amended by Act No. 11124, Dec. 31, 201)

(1) Where a taxpayer (excluding a person exempted from liability for tax payment under Article 29 of the Value-Added Tax Act) fails to file a tax base return under the tax-related Acts by the statutory due date of return, the amount of tax calculated under the tax-related Acts (including corporate tax on capital gains from land, etc. under Article 5-2 of the Corporate Tax Act in cases of corporate tax; including the amount to be added under Article 27 or 57 of the Inheritance Tax and Gift Tax Act in cases of inheritance tax and gift tax; and referring to the amount of tax payable under Articles 17 and 26 (2) of the Value-Added Tax Act in cases of value-added tax; hereafter referred to as "amount of tax payable" in this Section) shall be added to the amount of tax payable or deducted from the amount of tax payable: Provided, That where a person subject to double-entry bookkeeping (hereafter referred to as "person subject to double-entry bookkeeping by double-entry bookkeeping" in this Section) or a corporation fails to file a tax base return or corporate tax base return, the amount to be refunded or deducted from the amount of tax payable.

(2) Notwithstanding paragraph (1), if a taxpayer has filed a non-reported tax base (referring to the amount of tax payable under Articles 17 and 26 (2) of the Value-Added Tax Act in cases of value-added tax; hereafter the same shall apply in this Section) by improper means (referring to any method prescribed by Presidential Decree, which is a violation of his/her duty to report the tax base or amount of national tax on the basis of the concealment or pretending of all or part of the fact that serves as the basis for calculating the tax base or amount of national tax; hereafter the same shall apply in this Section), the aggregate of

1. Penalty tax on a non-reported tax base by improper means: An amount equivalent to 40/100 of an amount calculated by multiplying the ratio of an amount equivalent to the non-reported tax base by improper means (hereafter in this paragraph, referred to as "non-reported tax base") to the tax base by the calculated tax: Provided, That where a person subject to double-entry bookkeeping or a corporation fails to file a tax base return of income tax or corporate tax by improper means, it shall be the larger of an amount calculated by multiplying the amount of penalty tax on a non-reported tax base by 14/10,000 of the amount of income related to the non-reported tax base (hereafter in this Article, referred to as "amount of income non-reported

2. The amount of additional tax on the part other than that referred to in subparagraph 1: An amount equivalent to 20/100 of an amount calculated by multiplying the ratio of an amount equivalent to the tax base less the unjustly non-reported tax base out of the tax base to the tax base by the calculated tax amount: Provided, That where a person subject to double-entry bookkeeping or a corporation fails to file a tax base return of income tax or corporate tax, the amount equivalent to 20/100 of an amount calculated by multiplying the ratio of an amount calculated by subtracting the unjustly non-reported tax base from the tax base to the tax base by the ratio of the amount obtained by subtracting the unjustly non

(8) Where a return on tax base of inheritance tax or gift tax is not filed by the statutory due date of return and there is any amount to be added pursuant to Article 13 (1) and (2) or 47 (2) of the Inheritance Tax and Gift Tax Act, the amount calculated according to the following subparagraphs shall be deemed the calculated tax amount of inheritance tax or gift tax and paragraph (1) or (2)

1. In cases of inheritance tax: The amount obtained by subtracting the amount of deductible gift tax under Article 28 (1) of the Inheritance Tax and Gift Tax Act from the calculated tax under the same Act (including the amount to be added under Article 27 of the same Act);

2. In cases of gift tax: The amount obtained by subtracting the amount of gift tax deducted under Article 58 (1) of the Inheritance Tax and Gift Tax Act from the calculated tax under the same Act (including the amount to be added under Article 57 of the same Act).

Addenda No. 10405, Dec. 27, 2010

The amended provisions of Articles 47-2 (7) and (8) and 47-3 (3) shall apply to the first return, decision, or correction after this Act enters into force.

director Framework Act on National Taxes (amended by Act No. 12848, Dec. 23, 2014)

(1) If a person liable to pay taxes fails to file a return on the tax base of national taxes (including preliminary return and interim return, but excluding a return under the Education Tax Act, the Act on Special Rural Development Tax and the Comprehensive Real Estate Holding Tax Act) under tax-related Acts by the statutory deadline for filing a return, an amount equivalent to 20/100 of the amount classified as follows (hereinafter referred to as "amount of tax, etc.") shall be the additional tax: Provided, That if a person who fails to file a return on the tax base (limited to a return under Articles 70 and 124 of the Income Tax Act or Articles 60, 76-17 and 97 of the Corporate Tax Act) fails to file a return on the tax base (hereinafter referred to as "person liable to double-entry bookkeeping") or a corporation, the amount equivalent to 20/100 of the amount under subparagraph 1 or 2 by multiplying the amount by 7/10,000,000 of the zero-rate tax base by the aggregate of the amounts under Article 48 (1), 49 and 7 of the Value-Added Tax Act:

3. Inheritance tax and gift tax: Calculated tax under the Inheritance Tax and Gift Tax Act (if there is an amount to be added pursuant to Articles 27 and 57 of the same Act, such amount shall be added);

(2) Notwithstanding paragraph (1), an amount equivalent to 40/100 of the calculated tax, etc. shall be the additional tax where a person who fails to file a return on the tax base (limited to a return under Articles 70 and 124 of the Income Tax Act or Articles 60, 76-17 and 97 of the Corporate Tax Act) by unlawful means fails to file a return on the tax base under the tax-related Acts by the statutory due date of return: Provided, That where a person who files a return on the tax base by unlawful means is a person subject to double-entry bookkeeping or a corporation, the larger amount between the amount equivalent to 40/100 of the amount under paragraph (1) 1 or 2 and the amount calculated by multiplying the amount of income by 14/10,000, whichever is larger, shall be the additional tax where a person under the Value-Added Tax Act fails to file a return on the tax base under Articles 48 (1), 49 (1) and 67 of the same Act.

(5) In applying paragraph (1), where there is a tax amount paid by deducting the already paid tax amount from the calculated tax amount, etc. when the relevant national tax is paid, such as the interim tax amount, withholding tax amount, occasional tax amount, etc. (hereinafter referred to as " already paid tax amount"), the amount of income related to the already paid tax amount shall be deducted from the

Addenda No. 11124, Dec. 31, 2011

(4) The amended provisions concerning inheritance tax and gift tax in Articles 47-2 through 47-4 shall apply to the first inheritance and gift tax after January 1, 2012.

director Framework Act on National Taxes (amended by Act No. 14382, Dec. 20, 2016)

(1) If a taxpayer fails to file a return on the tax base of national taxes (including preliminary return and interim return, but excluding a return under the Education Tax Act, the Act on Special Rural Development Tax and the Comprehensive Real Estate Holding Tax Act) under tax-related Acts by the statutory deadline for filing the return, an amount equivalent to 20/100 of the amount of tax to be paid by such return (excluding additional taxes under this Act and other tax-related Acts, and the interest to be paid in addition under the tax-related Acts; hereinafter the same shall apply) shall be the additional tax: Provided, That where a person who fails to file a return on the tax base (limited to a return under Articles 70 and 124 of the Income Tax Act or Articles 60, 76-17 and 97 of the Corporate Tax Act) fails to file a return on the zero-rate tax under Article 160 (3) of the Income Tax Act or a corporation, an amount equivalent to 20/100 of the amount of tax to be paid by such return by multiplying the amount equivalent to 7/10,0,00, and 47 of the zero tax base under the same Act.

(2) Notwithstanding paragraph (1), if a person fails to file a return on the tax base of national taxes under tax-related Acts by the statutory due date of return due to an unlawful act, an amount equivalent to 40/100 (60/100, if a person fails to file a return on the tax base of national taxes due to an unlawful act committed in international trade) of tax payable shall be the additional tax: Provided, That if a person who files a return on the tax base (limited to a return under Articles 70 and 124 of the Income Tax Act or Articles 60, 76-17 and 97 of the Corporate Tax Act) by unlawful act fails to file a return on the tax base by double-entry bookkeeping or corporation, the amount equivalent to 40/100 (60/10, if a person fails to file a return on the tax base of national taxes due to an unlawful act committed in international trade) of which the amount is larger than the amount calculated by multiplying the tax base by 14/10,000, and if a person under the Value-Added Tax Act fails to file the tax base of zero percent (10/10).

Addenda No. 12848, 23, 2014

(4) The amended provisions concerning inheritance tax and gift tax in Articles 47-2 and 47-3 concerning the inheritance tax and gift tax shall apply from the portion inherited or donated on or after July 1, 2015: Provided, That the amended provisions under Article 47-3 (4) 1 (d) shall apply from the portion of correcting gift tax after this Act enters into force.

(1) Enforcement Decree of the Framework Act on National Taxes (Amended by Presidential Decree No. 26066, Feb. 3, 2015)

Article 27 (Additional Tax on Non-Filing) (1) "Amount of tax prescribed by Presidential Decree" in Article 47-2 (5) of the Act means the following amount of tax:

4. In cases of inheritance tax or gift tax: Amount of gift tax deducted under Article 28 or 58 of the Inheritance Tax and Gift Tax Act.

【Enforcement Decree of Framework Act on National Taxes

Article 27 (Additional Tax on Non-Filing) (2) In applying Article 47-2 of the Act, the amount of income shall be the amount of income falling under any of the following subparagraphs:

1. Private individual: The amount of gross revenue of the individual as an income from running a business as calculated in accordance with Articles 24 through 26 and 122 of the Income Tax Act;

2. Corporation: The amount of revenue of the relevant corporation to be entered in the report of tax base and amount of corporate tax pursuant to Articles 60, 76-17 and 97 of the Corporate Tax Act.

【Inheritance Tax and Gift Tax Act (Amended by Act No. 13557, Dec. 15, 2015)

(1) The amount of gift tax (referring to the amount of gift tax calculated on donated property at the time of donation) on donated property added to inherited property pursuant to Article 13 shall be deducted from the amount of inheritance tax calculated: Provided, That this shall not apply where gift tax is not imposed on donated property which is added to the taxable value of inherited property due to the expiration of the period prescribed in Article 26-2 (1) 4 or (4) of the Framework Act on National Taxes.

(2) The amount of the gift tax to be deducted pursuant to paragraph (1) shall be limited to an amount calculated by multiplying the amount of inheritance tax calculated by multiplying the ratio of the tax base of donated property added to the tax base of inherited property (including donated property added to inherited property pursuant to Article 13; hereafter the same shall apply in this paragraph) by the ratio of the tax base of donated property. In such cases, where the donee of such donated property is a successor or a testamentary donee, a deduction shall be made from the amount of inheritance tax to be paid by each heir or testamentary donee within the limit of an amount calculated by multiplying the inheritance tax amount to be paid

Article 47 (Taxable Value of Gift Tax) (1) The taxable value of gift tax shall be the total amount of the donated property under this Act as of the date of donation [excluding the value of the donated property under Articles 32 subparagraph 3 (b), 40 (1) 2, 41-3, 41-5, 42 (4), and 45-3 (hereinafter referred to as " donated property") minus the amount acquired by the donee as debts (including debts prescribed by Presidential Decree, such as debts related to the donated property, etc.) secured by the donated property.

(2) Where the total amount of the donated property received from the same person (where the donor is a lineal ascendant, including the spouse of such lineal ascendant) within ten years before the date of relevant donation is at least 10,000 won, such value shall be added to the taxable value of donated property: Provided, That this shall not apply to the donated property

(1) The amount of gift tax (referring to the calculated amount of gift tax on the relevant donated property as at the time of donation) paid or to be paid on the value of donated property (referring to the sum of values, when two or more donations exist) added to the taxable value of donated property pursuant to Article 47 (2) shall be deducted from the calculated amount of gift tax: Provided, That this shall not apply where gift tax is not levied on donated property which is added to the taxable value of donated property due to the expiration of the period prescribed in Article 26-2 (1) 4 or paragraph (4) of the same

(2) In cases falling under paragraph (1), the amount of deductible gift tax shall be limited to an amount calculated by multiplying the calculated amount of gift tax by the ratio occupied by the tax base of donated property, which is added to the aggregate of the value of the relevant donated property and the value of donated property added under Article 47