1. The Defendant’s penalty tax amounting to KRW 188,416,170, which was paid to the Plaintiff on July 6, 2004 by the Plaintiff on January 4, 2016, KRW 110,821,179.

Details of the disposition

The plaintiff is the representative director of B Co., Ltd. (hereinafter referred to as the "instant company") from July 12, 1997 to now.

The Plaintiff, around August 1995, held a title trust with 17,500 shares (25%) out of 70,000 shares issued by one of the promoters around the time of the incorporation of the instant company.

Around November 27, 2001, the instant company allocated 7,500 shares out of 30,000 new shares (25% shares) to C with capital increase paid around November 27, 2001. The Plaintiff held title trust with C, after paying the capital increase around that time.

(2) The shares of this case (hereinafter “the shares of this case”). C died on July 6, 2004, and around that time, as the deceased’s spouse of the deceased C (hereinafter “the deceased”), transfer was made in the name of D (B before the name of the deceased) who is the inheritor.

Around December 28, 2004, the instant company, while offering new shares with capital increase again, allocated 5,000 shares out of 20,000 shares of new shares (25% shares) to D. The Plaintiff paid the capital increase around that time, and thereafter held title trust with D the above 5,00 shares.

D returned to the Plaintiff the title of the instant shares on December 10, 2014, and around November 27, 2001, among the instant shares, it appears that the exclusion period for gift tax has been imposed on 17,500 shares, which were title trusted to the Deceased on or around August 1995, among the instant shares, at the time of 7,500 shares held in title trust to the Deceased.

On December 28, 2004, the gift tax was returned and paid according to the deemed donation of title trust shares on the 5,000 shares issued to D, which were held in title trust.

Based on Article 45-2 of the former Inheritance Tax and Gift Tax Act (amended by Act No. 916, Jan. 1, 2010; hereinafter “former Inheritance Tax Act”), the Defendant deemed that a new title trust was made with respect to the instant shares on July 6, 2004 between the Plaintiff and D, which was the commencement date of inheritance of the deceased, on July 6, 2004, and determined and notified that the gift tax on July 6, 2016 was KRW 18,416,170 (including additional tax of KRW 110,821,179) on July 6, 2016.