Seoul Administrative Court 2014Guhap74817 (Law No. 19, 2016)

to make a donation to a corporation which acquired loss, not a title trust;

In light of the fact that, in the event that a decedent makes a statement as a gift under a tax investigation upon his/her aggravation of the illness, it is reasonable to deem that he/she was in title trust to the corporation as a deficit when considering the fact that there is a risk of imposing gift tax pursuant to the constructive gift of title trust in the future, etc. when transferring to his/her children, it is reasonable to deem that he/she was in title trust with the corporation as a

Donation of title trust property under Article 41-2 of the Inheritance Tax and Gift Tax Act

Disposition Revocation of Imposition of Gift Tax

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The Director of the sericultural Tax Office

August 19, 2016

November 22, 2016

December 6, 2016

1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

1. Purport of claim

On October 1, 2013, the director of the sericultural Tax Office limited to the ○○○○○ on October 1, 201, and on July 27, 2007, gift tax on gift.

The imposition of KRW 3,578,558,210 (including additional taxes), the imposition of KRW 235,470,210 (including additional taxes), the imposition of global income tax for the year 2008, the imposition of KRW 228,147,560 (including additional taxes), the imposition of KRW 218,65,960 (including additional taxes) on global income for the year 2009, the imposition of KRW 210,679,360 (including additional taxes) on global income for the year 201, and the imposition of KRW 168,905,020 (including additional taxes) on global income for the year 2012, shall be revoked.

2. Purport of appeal

The part of the judgment of the court of first instance against the defendant shall be revoked, and the plaintiffs' claims corresponding thereto shall be dismissed.

1. Quotation of judgment of the first instance;

The reasoning for the court's explanation on this case is as follows in Section 13 of Section 9 of the judgment of the court of first instance. ① If the deceased ○○○○ intends to re-title trust upon the death of ○○○○○○○○, a trustee, the title trustee, it seems that there is no need to take over the ○○○○○○○, which was a deficit corporation. Rather, if the pertinent corporation acquired the deficit and donated the outstanding shares to the pertinent corporation, the donation profit is calculated to the extent of the deficit, and the children of ○○○○○, a donor or ○○○○○○○○○○○○, a shareholder of the ○○○○○○○○○○○○○, did not bear gift tax on the part exceeding the deficit. The pertinent corporation would have made a donation by deeming that it was more favorable than making a title trust rather than making a corporate tax payment on the capital increase interest in excess of the deficit, and therefore, it is cited by the reasoning of the judgment of the court of first instance except for the addition.

2. Conclusion

Therefore, the judgment of the first instance court is just, and the defendant's appeal is dismissed as it is without merit.