1. The plaintiff's appeal is dismissed.

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

Purport of claim and appeal

The first instance court.

1. The reasoning of the judgment of the court of first instance is partly dismissed among the reasons for the judgment of the court of first instance as follows, and it is identical to the reasons for the judgment of the court of first instance except for adding the judgment of the plaintiff as to the argument at the appellate court as follows. Thus, it shall be accepted in accordance with Article 8(2) of the Administrative Litigation Act and Article 420 of the Civil Procedure

The part of the revised "Special Taxation Act" in the third 3-4 of the third 3-4 shall be deemed to be "the Restriction of Special Taxation Act", and the 16-Class "the act of driving" shall be deemed to be "the act of driving".

Part 6 to 8 of the 8rd part of the â……………………………… is the following subparagraphs.

6. Profits from donation: The instant disposition is imposed after deferred taxation of capital gains tax on the profits from investment in kind, and it is not imposed on the profits from donation to a public-service corporation. Thus, whether the Plaintiff obtained any profits from donation and whether the disposition in this case is legitimate or not is not directly related to the issue of whether the Plaintiff obtained any profits from donation.

2. Judgment on the plaintiff's assertion

A. Article 38-2(3)2 of the Restriction of Special Taxation Act provides that the effect of deferment shall not be maintained in cases where the Plaintiff’s assertion is made by donation to his/her family members, such as lineal ascendants and descendants, after deferment of taxation, or the transfer of the holding company’s stocks through inheritance. Thus, imposing capital gains tax on the Plaintiff even in cases where the Plaintiff contributed stocks to a public-service corporation regardless of economic concentration or division, and thereby fails to enjoy any economic benefits, as such, violates the principle of proportionality. In the case of the Plaintiff, imposing capital gains tax on E/F’s shares originally owned are merely converted to D’s shares, which are holding companies, and it violates the principle of substantial taxation. Thus, the instant disposition is unlawful.

B. Determination of the Restriction of Special Taxation Act