Where the amount of gift tax on donated property added to inherited property is included in the amount of inheritance tax report, the method of calculating the amount deducted from the amount of inheritance tax tax

Article 20-2 (1) 2 of the former Inheritance Tax Act (amended by Act No. 5193 of Dec. 30, 1996) provides that "for a person who files a return within the return period under the provisions of Article 20 (1), 10/100 of the amount calculated by applying the provisions of Article 14 (Tax Rates) to the tax base reported shall be deducted from the inheritance tax amount calculated by deducting the amount to be deducted or reduced from the inheritance tax amount under the provisions of this Act or other Acts." The main sentence of Article 18 (3) of the same Act provides that "the amount of gift tax on donated property added to inherited property pursuant to the provisions of Article 4 (referring to the amount equivalent to the gift tax amount on donated property at the time of donation) shall be deducted from the inheritance tax amount calculated by deducting the amount of gift tax on donated property included in the reported tax amount and added to inherited property pursuant to the provisions of Article 4 of the same Act, and only 10/100 of the remaining reported tax amount shall be deducted from the inheritance tax amount.

Article 18 (3) (see current Article 28 (2) of the Inheritance Tax and Gift Tax Act) and Article 20-2 (1) 2 of the former Inheritance Tax Act (see current Article 69 (1) 2 of the Inheritance Tax and Gift Tax Act)

Plaintiff 1 and five others

Head of Nam Busan District Tax Office

Busan High Court Decision 97Gu15791 delivered on August 12, 1998

All appeals are dismissed. The costs of appeal are assessed against the plaintiffs.

The grounds of appeal are examined.

Article 20-2 (1) 2 of the former Inheritance Tax Act (amended by Act No. 5193, Dec. 30, 1996; hereinafter referred to as the "Act") provides that "as regards a person who files a return within the reporting period under the provisions of Article 20 (1), the amount included in the reported tax amount (hereinafter referred to as "reported tax amount") shall be deducted from the assessed tax amount of inheritance tax after deducting the amount to be deducted or reduced from the assessed tax amount of inheritance tax under the provisions of this Act or other Acts, from the amount calculated by applying the provisions of Article 14 (Tax Rates) to the reported tax base (hereinafter referred to as "reported tax amount"). The main sentence of Article 18 (3) of the Act provides that "the amount of gift tax on donated property added to inherited property under the provisions of Article 4 (referring to the amount equivalent to the assessed tax amount of gift tax on the relevant donated property at the time of donation") shall be deducted from the assessed tax amount of inheritance tax."

In the same purport, the judgment of the court below is just in holding that only 10/100 of the amount obtained by subtracting the amount of tax payable included in the reported amount of tax from the reported amount of tax shall be deducted from the assessed amount of inheritance tax, and there is no error in the misapprehension of legal principles as to the reported amount of tax or the amount of tax deducted or exempted

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

Justices Lee Yong-woo (Presiding Justice)