[2] Whether a corporation’s operating right is included in the net asset value of the corporation under Article 5(6)1(c) of the former Enforcement Decree of the Inheritance Tax Act, which provides for a supplementary evaluation method of unlisted stocks (affirmative), and in a case where a corporation that issued stocks, which are inherited property, owns stocks exceeding 10/10 of the total stocks issued by another corporation, whether such other corporation’s stocks may be assessed in accordance with the above Enforcement Decree (affirmative)

[2] The net asset value of a corporation under the formula of Article 5 (6) 1 (c) of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by the Presidential Decree No. 15193 of Dec. 31, 1996), which provides the supplementary method of appraisal of non-listed stocks, shall be included as a matter of course in the net asset value of the corporation. If the market value can be calculated pursuant to the provisions of Article 9 (2) of the former Inheritance Tax and Gift Tax Act (amended by the Inheritance Tax and Gift Tax Act No. 5193 of Dec. 30, 196), the evaluation of the operating right shall be made according to the supplementary method of appraisal as provided in the above Enforcement Decree when it is difficult to calculate the market value. In addition, as the above provision of Article 5 (6) 1 (h) of the former Enforcement Decree provides that where a corporation which issued non-listed stocks of another corporation owns not more than 10/100 of the total issued stocks of the other corporation, the evaluation right of the other corporation shall be made in accordance with the net asset value of shares issued by the corporation.

After finding the facts as stated in its reasoning based on the evidence adopted, the court below determined that the Plaintiffs were unable to divide the value of the deceased’s inherited property into the inherited property within the reporting deadline of the deceased’s inheritance tax base for the purpose of calculating the inheritance tax base under Articles 11(1)1 and 11(2) of the former Inheritance Tax Act (amended by Act No. 5193, Dec. 30, 1996; hereinafter referred to as the “former Inheritance Tax and Gift Tax Act”), and that the spouse’s personal deduction amount deducted from the taxable value should be calculated by multiplying the number of days of marriage by the number of 12 million won, and that “the spouse’s actual value of inherited property” should be calculated by dividing the value of the deceased’s inherited property by the inheritance tax return deadline for the purpose of deducting the actual value of the deceased’s inherited property from the deceased’s actual value of inherited property. Thus, it is difficult to view the Plaintiffs’ actual value of the deceased’s inherited property to have been reported within the reporting deadline of the deceased’s new shares transferred to the deceased’s heir’s death.

Examining the reasoning of the judgment below in light of the relevant provisions and records, the fact-finding and judgment of the court below are just and there is no error of law such as misunderstanding of legal principles as to the spouse's inheritance deduction amount or misunderstanding of facts

2. As to the appraisal of goodwill

After finding the facts as stated in its reasoning based on its adopted evidence, the court below rejected the plaintiffs' assertion that it is improper to increase the value of non-listed stocks, which are inherited property, by calculating the net asset value of other corporations, including the corporation's operating rights, if the value of non-listed stocks is limited to the case where the value of the non-listed stocks is inherited property. The court below rejected the plaintiffs' assertion that the increase of the value of non-listed stocks, which is inherited property, is unfair by calculating the net asset value of the other corporations, including the corporation's operating rights, for the purpose of assessing the value of the non-listed stocks. According to the formula of Article 5 (6) 1 (c) of the former Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 15193, Dec. 31, 196), the net asset value of the corporation under the provision of Article 9 (2) of the former Act, including the value of the non-listed stocks, is included in the net asset value of the corporation's issued stocks, for the purpose of calculating the market value of the non-listed stocks.

Examining the reasoning of the judgment below in light of relevant provisions and records, the fact-finding and judgment of the court below are just and there is no error of law such as misunderstanding of legal principles as to the method of appraisal of unlisted

3. Conclusion

Therefore, all appeals are dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Byun Jae-chul (Presiding Justice)