Case Number of the immediately preceding lawsuit
Suwon District Court-2015-Guhap-70356 (Law No. 19, 2017)
Title
Whether a religious organization is legitimate in taxation on the constructive gift of title trust on the fact that a religious organization has trusted the shares in question to the plaintiffs.
Summary
There is no ground to recognize non-taxation practices to permanently exempt religious organizations from corporate tax, etc., and the plaintiffs cannot be deemed to have no purpose of tax avoidance when they received the title trust from religious organizations (the grounds for the first instance judgment).
Related statutes
Article 45-2 of the former Inheritance Tax and Gift Tax Act (amended by Act No. 8828 of Dec. 31, 2007)
Cases
2017Nu39701 Revocation of Disposition of Imposition of Gift Tax
Plaintiff and appellant
Gangwon* et al.* 22
Defendant, Appellant
***** et al.
Judgment of the first instance court
Suwon District Court Decision 2015Guhap70356 Decided January 19, 2017
Conclusion of Pleadings
May 30, 2017
Imposition of Judgment
June 20, 2017
Text
1. All appeals filed by the plaintiffs are dismissed.
2. The costs of appeal are assessed against the Plaintiffs.
Purport of claim and appeal
The judgment of the first instance shall be revoked. Each disposition imposing gift tax (including additional tax) as stated in [attached Form] against the Plaintiffs shall be revoked.
Reasons
The reasoning for this Court’s explanation concerning this case is as follows: (a) except that the evidence No. 4 of the first instance judgment No. 5 of the 8th instance court’s decision is “Evidence No. 4, 22, 23 of the A”) is “Evidence No. 4, 22, and 23 of the A,” and thus, the reasoning for this Court’s explanation is as stated in the reasoning for the first instance
If so, the judgment of the first instance court is justifiable, and the plaintiffs' appeal is dismissed as it is without merit.