[1] The meaning of "tax amount of corporate tax, etc. on the income of the corporation" under Article 5 (3) 1 of the former Enforcement Rule of the Inheritance Tax Act, which shall be deducted as a debt from the appraised value of the corporation's net asset in the calculation of the complementary valuation of the value of the corporation'

[2] In calculating the net asset value of the corporation when the supplementary evaluation of non-listed stocks, which are inherited property, the amount equivalent to the corporate tax, etc. for the voluntary evaluation marginal profits not included in the earnings until the date the inheritance commences, can be deemed as the debt to be deducted from the asset evaluation value (negative)

[1] In full view of the provisions of Article 9(1) and (2) of the former Inheritance Tax Act (amended by Act No. 5193, Dec. 30, 1996); Article 5(1) and (6)1 (c) and (d) of the former Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 15193, Dec. 31, 1996); Article 5(3)1 of the former Enforcement Rule of the Inheritance Tax Act (amended by the Enforcement Rule of the Inheritance Tax and Gift Tax Act, No. 629, Apr. 19, 197); in calculating the net asset value of the corporation's stocks not listed on the Stock Exchange at the time of commencement of the inheritance, the "tax amount of corporate tax, etc. on the corporation's income, etc." means that the corporation's income amount already or finally assessed on the corporation's property income until the commencement date of the inheritance.

[2] According to Article 9(1) and (2) of the former Corporate Tax Act (amended by Act No. 5192 of Dec. 30, 1996) and Article 12(1)5 of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 15192 of Dec. 31, 1996), the valuation marginal profit under Article 10(5) of the Enforcement Decree of the Assets Revaluation Act among the valuation marginal profit of fixed assets shall be included in the "gross profit," which serves as the basis for calculating the income amount for each business year. However, according to Article 33(1) of the former Assets Revaluation Act (amended by Act No. 5531 of Apr. 10, 1998), the valuation marginal profit of the corporation shall not be included in the calculation of the income amount of the Corporate Tax Act, and it shall not be included in the calculation of the income amount of the corporation under Article 15(1)5 of the former Enforcement Decree of the Corporate Tax Act.

[1] Article 9(1) and (2) of the former Inheritance Tax and Gift Tax Act (amended by Act No. 5193, Dec. 30, 196; see Article 60(1) of the current Inheritance Tax and Gift Tax Act); Article 5(1) and (6)1 (c) of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 15193, Dec. 31, 1996; see Article 60(1) and (4) of the current Inheritance Tax and Gift Tax Act (see Article 54(1) of the current Inheritance Tax and Gift Tax Act); Article 9(1) and (2) (3) of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Act No. 15193, Apr. 19, 197); Article 5(1) (2) of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Act No. 1519, Dec. 15, 1996)

[1] [2] Supreme Court Decision 96Nu16308 delivered on November 27, 1998 (Gong1999Sang, 65) / [1] Supreme Court Decision 90Nu4136 delivered on January 29, 1991 (Gong191, 891)

Plaintiff 1 and seven others (Attorney Jeong Sung-sung et al., Counsel for the plaintiff-appellant)

The Director of Gangnam District Office

Seoul High Court Decision 99Nu14920 delivered on May 24, 2000

All appeals are dismissed. The costs of appeal are assessed against the plaintiffs.

The grounds of appeal are examined.

In full view of the provisions of Article 9(1) and (2) of the former Inheritance Tax Act (amended by Act No. 5193 of Dec. 30, 1996), Article 5(1) and Article 5(6)1(c)(d) of the former Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 15193 of Dec. 31, 1996; hereinafter the same shall apply), and Article 5(3)1 of the former Enforcement Rule of the Inheritance Tax Act (amended by the Enforcement Rule of the Inheritance Tax and Gift Tax Act No. 629 of Apr. 19, 197) in order to calculate the value of stocks not listed on the Korea Stock Exchange at the time of commencement of inheritance, in calculating the net asset value of the corporation's income, the "tax amount of corporate tax, etc. on the corporation's income, including corporate tax, shall be deducted from the appraised value of the corporation's property until the commencement of inheritance, it shall be deemed that the corporation's corporate tax has already been imposed or finally imposed on its income (see 198.

However, according to Article 9(1) and (2) of the former Corporate Tax Act (amended by Act No. 5192, Dec. 30, 1996; hereinafter the same) and Article 12(1)5 of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 15192, Dec. 31, 1996), the evaluation marginal profit under the Assets Revaluation Act and Article 10(5) of the Enforcement Decree of the Corporate Tax Act among the evaluation marginal profit of fixed assets shall be included in the "gross profit, which serves as the basis for calculating the income amount for each business year," but on the other hand, according to Article 33(1) of the former Assets Revaluation Act (amended by Act No. 5531, Apr. 10, 1998; hereinafter the same), the evaluation marginal profit of the corporation, including the evaluation marginal profit of the corporation under the Assets Revaluation Act, shall not be included in the calculation of its income amount in the calculation of its income amount, and it shall not be included in the calculation marginal profit of the fixed asset.

The judgment of the court below to the same purport is just, and there are no errors in the misapprehension of legal principles as to the appraisal of unlisted stocks or violation of judicial precedents as alleged in the grounds of appeal.

The Supreme Court decisions cited in the ground of appeal by the Plaintiff are inappropriate to be invoked in the instant case, since they differ from those cases.

Therefore, all appeals are dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Park Jae- Jae (Presiding Justice)