Examination Inheritance 2013-0028 ( November 19, 2013)

It does not constitute money or goods of the nature of consolation money due to a traffic accident of the deceased.

The key traffic accident compensation includes only consolation money for physical and mental pain of the inheritee, and it cannot be excluded from inherited property because it is difficult to view it as compensation for bereaved family's compensation or accident compensation caused by the death of the inheritee due to the death of the inheritee.

Article 7 (Scope of Inherited Property)

revocation of revocation of revocation of inheritance tax rejection by Suwon District Court 2014Guhap51235

L**

*The Director of the Tax Office

September 5, 2014

October 17, 2014

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

The rejection disposition of correction of KRW 1,614,708,729, which the defendant of the Gu office was made to the plaintiff on July 5, 2013, shall be revoked.

1. Details of the disposition;

A. The Plaintiff’s most son** suffered serious injury from the bones of trees, while travelling to Australia on September 22, 2009 (hereinafter “the instant accident”).

B. Maximum** filed a lawsuit against the insurance company of Lereler in the instant case against the insurance company, and the conciliation was concluded with the insurance company to receive USD 6 million (excluding money paid directly to the medical institution due to rehabilitation treatment costs, etc.) from the insurance company 5,816,511,727 (hereinafter referred to as "the issue amount of this case").

C. On September 11, 201, the most** was under domestic treatment. On September 11, 201, the Plaintiff was inherited (hereinafter “instant inheritance”). D. On March 31, 2012, the Plaintiff reported and paid KRW 1,65,208,729 as inheritance tax on September 31, 201, and received notification of the results of the tax investigation determined as reported and paid by the Director of the Central Tax Office on September 24, 2012.

E. However, on May 13, 2013, the Plaintiff filed a claim for correction of KRW 1,655,208,729 for the refund of KRW 90,000,000,000 for the GSS test to be borne by the decedent in calculating the inheritance tax of this case, on the ground that the Plaintiff did not deduct KRW 90,000,000 for the deposit money for the GSS test, and on July 5, 2013, the Defendant received the Plaintiff’s above part of the claim, but the Defendant did not accept the remainder of the claim on the ground that the Plaintiff was subject to inheritance tax, without accepting the remainder of the claim on the ground that it was subject to imposition of inheritance tax (i),614,708,708,729,729-40,500,000 for the remainder of KRW 40,50,000 for the said part (hereinafter “instant disposition”). The Plaintiff received a request for correction from the Commissioner of the National Tax Service on October 131, 213, 2013.

[Ground of recognition] Facts without dispute, entry of Gap evidence Nos. 3 through 7, purport of the whole pleadings

2. Related statutes;

It is as shown in the attached Form.

3. Whether the instant disposition is lawful

A. Whether the key issue member of the instant case is subject to inheritance tax

(1) The plaintiff's assertion

Since the substance of this case is the damage compensation for a human body or life, imposing taxes is contrary to the human dignity prescribed by the Constitution. The above key money sources include various medical expenses for decedents, and mental and property damage for the plaintiff, etc., so it should be excluded from the subject of the inheritance tax in light of the substance over form principle.

(2) Determination

Article 1 (1) of the Inheritance Tax and Gift Tax Act (hereinafter referred to as the "Act") provides that "the inheritance tax shall be levied, as prescribed by this Act, on all inherited property of a resident in cases where a person who has a domicile in the Republic of Korea or has a domicile in the Republic of Korea as of the date of commencing the inheritance (hereinafter referred to as "resident") dies," and Article 7 (1) of the Act provides that "property shall include all articles having economic value and property value that can be converted into money, and all de facto or de facto rights having property value, which belong to the decedent." This issue issue issue is that the automobile insurance money received by the decedent before his/her birth (it has substance of damage compensation for the decedent caused by the accident in this case) is subject to the inheritance tax unless it is evident that there is economic or property value due to the automobile insurance money received by the decedent before his/her death (it is not the subject of inheritance tax even if the death of the decedent is directly related to the accident in this case, so it cannot be found that the inheritance tax is imposed on the decedent's life or property itself at the time of his/her death.

In addition, the materials submitted by the Plaintiff alone lack of evidence to deem that the instant key money source includes mental and physical damage against the Plaintiff, and even if various medical expenses for the decedent were included, it cannot be the basis to exclude the decedent from the subject of imposition of inheritance tax solely on such grounds. Therefore, the Plaintiff’s assertion in this part is rejected.

B. As to the expenses paid by the Plaintiff for nursing, etc. of the inheritee, the Plaintiff submitted a copy of various receipts (Evidence A No. 8) without asserting that the expenses paid by the Plaintiff for nursing, etc. of the inheritee should be deducted from the subject of the inheritance tax of this case. However, in light of the Plaintiff’s report, payment, etc. of inheritance tax and the process up to the argument in this case, the evidence submitted by the Plaintiff alone cannot be deemed as having been directly paid by the Plaintiff for nursing, etc. of the inheritee, and it is difficult to view that the expenses were not deducted from the inheritee’

4. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit. It is so decided as per Disposition.

Judges Kim*

Judges New*

Judges Yoon*

Related Acts and subordinate statutes

Inheritance Tax and Gift Tax Act

Article 1 (Inheritance Tax Taxables)

(1) A donation becoming effective due to the death of a donor (a testamentary gift or a donation under Article 14 (1) 3)

Where a donor dies during the performance of his/her obligations, the donor shall be included in the gift; hereinafter the same shall apply) and the Civil Act

Awards by means of distribution of inherited property to a special relative under Article 1057-2; hereinafter the same shall apply)

The date of commencement (referring to the date of adjudication of disappearance in cases where inheritance commences due to the adjudication of disappearance; hereinafter the same shall apply).

Inheritance tax on any of the following inherited property, as prescribed by this Act:

shall be imposed.

1. Where a person who has established a domicile in Korea or has established a temporary domicile in Korea for at least one year (hereinafter referred to as "resident") dies;

All inherited property (property bequeathed by an ancestor and becoming effective upon the death of an ancestor) of a resident;

(including donated property; hereinafter the same shall apply)

Article 3 (Liability for Inheritance Tax Payment)

(1) An inheritor (referring to an inheritor under Articles 1000, 1001, 1003 and 1004 of the Civil Act) and the same shall apply.

A person who renounces inheritance under Article 1019 (1) of the Act and a special relative under Article 1057-2 of the same Act;

(c) A person to whom a legacy is made (including any donation becoming effective due to the death of the deceased; and

a person acquiring property, including a person acquiring property; hereinafter referred to as a testamentary donee) shall pay to the inheritance tax imposed under this Act

(1) Calculation, as prescribed by Presidential Decree, on the basis of property received or to be received by each person among such inherited property.

shall be liable to pay inheritance tax at the same rate: Provided, That special succession pursuant to Article 1057-2 of the Civil Act shall be subject to

(i) Where a person or testamentary donee is a profit-making corporation, the profit-making corporation shall be exempted from inheritance tax payable by it.

Any successor or investor who has a lineal descendant and his/her lineal descendant shall be governed by Presidential Decree.

The heir and his lineal descendant are liable to pay the share amount calculated as D.

Article 7 (Scope of Inherited Property)

(1) The inherited property under Article 1 shall be the property belonging to the ancestor and usable for conversion into money.

All articles having economic value and all legal or de facto rights having property value;

section 3.

Article 8 (Insurance Money Regarded as Inherited Property)

(1) Insurance proceeds of life or non-life insurance received due to the death of an ancestor, appointed by the ancestor.

Those received according to an insurance contract which is a contractor for examination shall be considered as inherited property.

(2) Where an ancestor substantially pays premiums even where the ancestor is not the decedent.

The provisions of paragraph (1) shall apply to an decedent who is deemed a policyholder.

Article 10 (Retirement Allowance, etc. Deemed Inherited Property)

Retirement allowances, allowances, merit pays, pension, or other similar things payable to the inheritee which are deceased;

If payment is made with respect to inherited property, such amount shall be deemed inherited property: Provided, That any of the following years shall be deemed inherited property:

Current assets shall not be considered as inherited property.

1. A lump-sum refund payable under the National Pension Act or due to death;

2. A survivor pension or survivor pension paid pursuant to the Public Officials Pension Act or the Pension for Private School Teachers and Staff Act.

Ad hoc, bereaved family's pension, bereaved family's compensation, or bereaved family's compensation

3. A survivor's pension, a bereaved family's pension, a bereaved family's pension, or a bereaved family's pension.

§ 80,000

4. Survivors' compensation annuities, lump sum survivors' compensation annuities, special survivors' compensation annuities paid under the Industrial Accident Compensation Insurance Act;

Pneumoconiosis survivors' annuities

5. The oil of a worker by applying mutatis mutandis the Labor Standards Act, etc. to the worker due to occupational death.

Survivor's compensation, accident compensation, and others similar thereto paid to satisfaction;

6. Cases similar to subparagraphs 1 through 5, which are prescribed by Presidential Decree.

Enforcement Decree of Inheritance Tax and Gift Tax Act

Article 6 (Retirement Allowance, etc. Excluded from Inherited Property)

"Those prescribed by Presidential Decree" in subparagraph 6 of Article 10 of the Act means the Honorable Treatment of Former Presidents Act or the Honorable Treatment Act.

A survivor's pension, a bereaved family's pension, and a bereaved family's pension paid pursuant to the Special Post Offices Act.