The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined.

1. The provision on deemed donation of trust property under the name of Article 45-2(1) of the former Inheritance Tax and Gift Tax Act (amended by Act No. 9916, Jan. 1, 2010) applies to a case where the actual owner and the nominal owner are different in the property that requires registration, etc. for the transfer or exercise of the right. In such a case, the tax authority must prove that the nominal owner of the pertinent property differs from the actual owner due to the existence of an agreement

2. The reasoning of the lower judgment and the record reveals: (a) on March 28, 2008, the Plaintiff acquired 3,516,971 shares issued by D Co., Ltd. (hereinafter “D”) (hereinafter “D”); (b) on December 30, 2009, B acquired 4,984,436 shares issued by D Co., Ltd. (hereinafter “instant shares”) from C; (c) on December 30, 2009, the Plaintiff announced D’s largest shareholder (16.35%) to borrow KRW 9.3 billion from the Plaintiff; and (d) on December 30, 2009, the loan was appropriated as “short-term bond” in the part of the balance sheet; and (d) on December 28, 2008, B acquired the outstanding shares under the name of D Co., Ltd. (hereinafter “public company’s asset sale securities”); and (e) sold the outstanding shares under the name of D Co., Ltd. as security; and (e) sold the outstanding shares in the remaining 28481.

3. Examining these facts in light of the legal principles as seen earlier, B became entitled to participate in management as the largest shareholder of D by borrowing Plaintiff’s funds and accepting the instant stocks, and limited to the actual use of the instant stocks as collateral or selling them for its own business purposes, such as repayment of principal and interest of loans.