The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined.

1. Case summary

A. I had his children J and Plaintiff D, Plaintiff E, Plaintiff F, Plaintiff G, and Plaintiff H.

I, on August 10, 2007, as children between J and the Plaintiff (her spouse) and his spouse, donated 500,000,000 won to Plaintiff B, who was the grandchildren, and 300,000,000 won to Plaintiff C, and donated cash and real estate to the Plaintiffs until around 2009.

B. The Plaintiffs paid gift tax on the said donation. Plaintiff B and Plaintiff C constitute a lineal descendant, who is not a donor, and thus, paid an amount calculated by adding 30/10 to the amount of gift tax calculated on cash donation (hereinafter “the added amount”) as seen earlier pursuant to the main sentence of Article 57 of the former Inheritance Tax and Gift Tax Act (amended by Act No. 11690, Mar. 23, 2013; hereinafter “former Inheritance Tax Act”).

C. While I died on February 22, 2013, the J died on November 21, 2008, and thereafter, the Plaintiff A, B, and C, as the inheritor of J, jointly inherited I with the rest of the Plaintiffs, as the inheritor of J. D.

On December 8, 2014, the Defendant calculated the value of the property donated by I, a decedent, within ten (10) years prior to the commencement date of inheritance, based on the inheritance tax amount included in the taxable value of inherited property of the Plaintiffs, co-inheritors, and notified the Plaintiffs of the payment of the total tax amount payable and the tax amount payable to each heir (the sum of these assessment and assessment of inheritance tax and the collection notice,

However, while adding the property of prior donation to the Plaintiff B and C to the inherited property, the Defendant calculated the tax amount by deducting only the gift tax amount omitted from the inheritance tax amount calculated.

2. Relevant regulations and issues

A. (1) Article 13(1) of the former Inheritance Tax Act provides that “The value of property donated by an ancestor to his heir within 10 years before the commencement date of the inheritance” (No. 1).