beta
Main Issues
Whether the transaction price of the shares transferred with the management right of the company can be seen as the market price of the shares (negative)
Summary of Judgment
If shares issued by a company are transferred together with the management right of the company, the transaction price shall not be the market price that reflects the objective exchange value when only shares are transferred.
[Reference Provisions]
Article 5 (1) of the Enforcement Decree of the Inheritance Tax Act
Reference Cases
Supreme Court Decision 80Nu543 Decided February 23, 1982, 85Nu208 Decided September 24, 1985, Supreme Court Decision 88Nu9565 Decided July 25, 1989
Plaintiff-Appellee
[Defendant-Appellee] Plaintiff 1 and 1 other
Defendant-Appellant
Head of Gwangju District Tax Office
Judgment of the lower court
Seoul High Court Decision 87Gu1074 delivered on December 15, 1988
Notes
The appeal is dismissed.
The costs of appeal are assessed against the defendant.
Due to this reason
As to the grounds of appeal by Defendant Litigation Performers:
If shares issued by a company are transferred together with the management right of the company, the transaction price cannot be considered as the general market price that reflects the objective exchange value when only shares are transferred (see Supreme Court Decision 80Nu543, Feb. 23, 1982; Supreme Court Decision 85Nu208, Sept. 24, 1985; Supreme Court Decision 88Nu9565, Jul. 25, 1989).
Therefore, the court below is just in holding that there is no evidence to acknowledge that there is no special circumstance that can reasonably reflect the objective exchange value of the stock itself with the management right of the company, and there is no error in the misapprehension of legal principles as to stock transfer or incomplete hearing, such as theory of lawsuit, etc. It is groundless to view that there is no such special circumstance as the market price to properly reflect the objective exchange value of the stock itself.
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 Yoon Young-young (Presiding Justice)