Effect of a disposition of inheritance tax assessment, which states only the total tax amount without individually specifying the tax amount of co-inheritors;

The proviso of Article 25-2 of the Inheritance Tax Act (amended by Act No. 3578 of Dec. 21, 1982) and Articles 19(1) and 19(2) of the Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 10979 of Dec. 31, 1982) merely provide for the special provisions on the method of serving a tax payment notice in order to promote the convenience of taxation administration in the case of joint inheritance. Thus, it cannot be the ground that each tax amount borne by co-inheritors should not be individually specified in the tax payment notice. Thus, if only written the total amount of tax assessed on the basis of the entire miscarriage of the inheritee and did not individually specify the amount of tax to be borne by co-inheritors, the taxation disposition based on the tax payment notice is unlawful since the procedure for imposing such taxation violates Article 9 of the National Tax Collection Act and Article 19(1)

Article 25-2 of the Inheritance Tax Act (amended by Act No. 3578, Dec. 21, 1982); Article 19(1) and (2) of the Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 10979, Dec. 31, 1982); Article 9 of the National Tax Collection Act

Plaintiff 1 and 8 others, Counsel for the plaintiff-appellee

Deputy Director of the Tax Office

Seoul High Court Decision 85Gu653 delivered on August 22, 1986

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. As to ground of appeal No. 1

According to the reasoning of the judgment below, the court below determined that: (a) the deceased non-party 1 died on December 23, 1979; (b) the deceased's wife and children, who were his wife and children, were co-inheritors of the deceased; and (c) the defendant determined the amount of inheritance tax base based on the above inheritance as KRW 78,29,574; and (d) calculated the amount of inheritance tax base based on the above inheritance as KRW 25,190,200 and the amount of KRW 5,065,00 for defense tax; and (c) on October 15, 1984, the above amount of tax was not specified separately according to the share of inheritance; and (d) issued a tax notice to the plaintiff 1 to pay the total amount of inheritance tax and defense tax; and (e) determined that the defendant did not notify the plaintiff 1 of the determination that the above tax base should not be revoked by the Presidential Decree, and (e) notified the plaintiff 1 of the determination to the other tax authority.

According to Article 25-2 of the Inheritance Tax Act (amended by Act No. 3578, Dec. 21, 1982; effective January 1, 1983), the Government shall notify the heir or testamentary donee when the tax base and tax amount are determined or corrected pursuant to Article 25. In this case, if the heir or testamentary donee is at least two, it may notify only one of them as prescribed by the Presidential Decree. This notification shall affect all of the heir or testamentary donees. Article 19 of the Enforcement Decree of the above Act (amended by Presidential Decree No. 10979, Jan. 1, 1983) provides that the first notification of the tax base and tax amount shall be made to the heir or testamentary donee pursuant to Article 25-2 of the Act. Paragraph (2) provides that the first notification of the tax base and tax amount shall be made to the heir or testamentary donee, and Article 25-1 of the Enforcement Decree of the above Act provides that the latter notification of the tax amount shall be made to the heir or testamentary donee.

However, the amended proviso of Article 25-2 of the Inheritance Tax Act and Articles 19(1) and 19(2) of the Enforcement Decree of the same Act do not stipulate the special provisions on the method of delivering a tax payment notice for the convenience of tax administration in the case of joint inheritance, and therefore, it cannot be the ground that each tax amount borne by co-inheritors is not individually specified in the tax payment notice. As determined by the court below, the notice of this case, notified by the defendant, only stated the total tax amount as the tax base of the deceased's whole heritage, and did not specify the amount of tax individually to be borne by the plaintiffs, if the procedure for imposing such tax payment violates the provisions of Article 9 of the National Tax Collection Act and Article 19(1) of the Enforcement Decree of the Inheritance Tax Act, and thus, the judgment of the court below that the tax disposition of this case is unlawful.

2. As to ground of appeal No. 2

According to the reasoning of the judgment below, the court below found that the deceased non-party 1 offered real estate as security on October 30 of the same year as well as 20 million won from the non-party 2 and the non-party 3 borrowed money of 40 million won from the non-party 3 and the non-party 3 and used it as business funds, and determined that the above borrowed money of 60 million won constitutes a certain obligation to be deducted from the inherited property value, and therefore the taxable value to be deducted from 78,299,574 won as stated in the attached list of the judgment below recognized by the defendant is 18,29,574 won in the taxable value of the attached list of the judgment below, and that there is no error of law by misunderstanding the legal principles as to the above amount of the inherited property under Articles 5, 11, and 11-2 of the former Inheritance Tax Act which was enforced at the time of the commencement of the inheritance, and there is no error in the misapprehension of the legal principles as to the above amount of the inherited property tax.

3. Therefore, the appeal is 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.

Justices Lee Jin-Post (Presiding Justice)