Article 41-3 of the former Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 12038 of Dec. 31, 1986), applicable to the evaluation of unlisted stocks in order to determine whether it falls under a deemed donation under Article 41-3 of the same Act.

Unlike the amended order, Article 41-3 of the former Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 12038, Dec. 31, 1986) excludes the provisions of Articles 5-2 through 7 of the Decree. Thus, in evaluating unlisted stocks or for this purpose, it shall be evaluated only pursuant to Article 5(1) of the Decree in assessing the net asset value of the corporation concerned, and Article 9(4) of the Inheritance Tax Act or Article 5-2 of the Decree for the enforcement of the Act on the Evaluation of Property for which a security is created among inherited or donated property shall not be applied. Accordingly, the term "this Ordinance" as provided in Article 5(5)1 (c) of the same Decree does not include Article 5-2 of the Decree.

Article 34-4 of the Inheritance Tax Act; Articles 41-3, 5(1), and 5(5)1(c) of the former Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 12038, Dec. 31, 1986)

Plaintiff 1 and one other

Head of Maritime Affairs Office

Daegu High Court Decision 86Gu328 delivered on August 26, 1987

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

The former Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 12038, Dec. 31, 1986; hereinafter the same shall apply) Article 41-3 of the former Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 12038, Dec. 31, 1986; hereinafter the same shall apply) provides that when a person in a special relationship with a shareholder who has renounced his preemptive rights gives up all or part of the right to receive new shares, in a case where new shares are allocated in excess of his share ratio, the difference between the payment amount of the new shares allocated in excess and the amount of the new shares allocated in excess shall be excluded from the provisions of Articles 5-2 through 7 of the Decree. Thus, in this case, the provisions of Article 5-3 of the former Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 12038, Dec. 31, 1986; hereinafter the same shall apply) Article 34-4 of the former Enforcement Decree of the Inheritance Tax Act (the Act) shall be applied only to the appraisal of the company's property for inheritance or gift.

However, according to Article 5 (1) of the Decree, the valuation of inherited property shall be based on the method prescribed in paragraphs (2) through (5) when it is difficult to calculate the market price, and as to the valuation of unlisted stocks, paragraph (5) 1 (b) and (c) of this Article shall be interpreted to include Article 5-2 of the Decree in the assessment of net asset value of the corporation in question in order to assess unlisted stocks, and if the legal relationship is the same as above, it shall be evaluated in accordance with paragraph (2) 1 (b) and (c) of this Article, and if the legal relationship is the same as above, it shall not be included in Article 5-2 of the Decree. Therefore, the judgment of the court below to the same purport shall be justified, and there is no reason to

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 Ansan-man (Presiding Justice)