Whether it has been engaged in farming for not less than five years after being exempted from gift tax;

The term "self-employed person engaged in direct farming" means a person who manages and cultivates farmland, etc. under his/her own responsibility without entrusting or lending it to another person. Thus, if the person indirectly operates agriculture in concentrate on another occupation, he/she is not a self-employed farmer.

Article 58 of the Regulation of Tax Reduction and Exemption Act, exemption from gift tax on farmland, etc. donated to farming children.

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

The disposition of imposition of gift tax of KRW 68,893,720, which the Defendant rendered to the Plaintiff on January 2, 2006, shall be revoked.

1. Details of the disposition;

The following facts are not disputed between the parties, or may be acknowledged by considering the whole purport of the pleadings as a whole in the entries in Gap evidence 1 and evidence 2-1, 2, Gap evidence 3, 4, 5, and Eul evidence 1 through 4:

A. On December 24, 2002, the Plaintiff: (a) received a donation of 1,983 square meters for ○○○○-dong 1,983 square meters from ○○○○○○ on December 24, 2002; (b) on March 31, 201, △△△△△△-Do △△△△-Do △△△△△ (hereinafter collectively referred to as the “farmland”); (c) on March 13, 2003, the Plaintiff filed an application with the head of ○○○ on March 13, 200, for tax reduction or exemption under the former Restriction of Special Taxation Act (amended by Act No. 6297, Dec. 29, 200; (d) Article 15(2) and the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Act No. 7003, Dec. 28, 1998; hereinafter referred to as the “former Enforcement Decree of the Restriction of Special Taxation Act”).

나. 원고는 2004. 2. 27. 자신의 주민등록상 주소지를 ´□□시 □□동 □□□ □□마을 8단지 □□ □□ 아파트 □□□동 □□□호´에서 ´XX시 XX구 XX동 XXX XXXX아파트 808호´로 전입신고를 마쳤고, 이에 ○○○ 세무서장은 2004. 9. 15. 원고의 주소지를 관할하는 피고에게 이 사건 농지에 관한 증여세감면 사후관리카드를 송부하였다.

C. On January 2, 2006, the Defendant calculated the calculated tax amount of 79.617.40 billion won by multiplying the Plaintiff by the tax rate under Articles 56 and 26 of the Inheritance Tax and Gift Tax Act [10 million won + (448,087,000 won - 100 billion won) + 20%] calculated by deducting the amount of 30,000 won from the assessed tax amount of 478,087,00 won from the assessed tax amount pursuant to Articles 47, 53, 54, and 55 of the Inheritance Tax and Gift Tax Act, which was exempted from gift tax on the farmland of this case and did not engage in farming for five or more years, and then did not engage in farming. 6,09. 6,09,109, 1230,000 won for the returned tax amount, 16,3084, 206, 2084, 206, 2064, 1676,4,78

D. The plaintiff filed an objection with the National Tax Tribunal on May 12, 2006, but the National Tax Tribunal dismissed the plaintiff's request on September 15, 2006.

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

원고는 2002. 3.경 XX시 소재 주식회사 XXXXX를 퇴직한 다음 다른 직업없이 현재까지 부모님과 함께 □□시 □□동 □□□ 소재 아파트에서 거주하면서 이 사건 농지 및 원고 소유의 다른 농지, 김○○ 소유의 농지를 직접 경작하면서 김○○의 건물 임대업을 돕고 있고, 다만 자녀들의 취학관계상 어쩔 수 없이 주민등록상 주소지만을 종전 주소지에서 XX XX구 XX동으로 이전한 것 뿐이다. 따라서 원고는 여전히 이 사건 농지와 인접한 □□시 □□동 에 거주하면서 이 사건 농지를 직접 경작하고 있음에도 원고가 이 사건 농지를 직접 경작하지 아니한다고 하면서 증여세를 부과한 이 사건 부과처분은 위법하다.

(b) Related statutes;

See attached Table E-related Acts and subordinate statutes.

(c) Fact of recognition;

In full view of the evidence mentioned above, the following facts can be acknowledged if Gap evidence Nos. 6, 7, 8, 9-1, 2, 10, 11-1, 2, 3, 12-1, 2, 15, 16, 17, 5, and 6 evidence Nos. 5 and 6:

(1) The domicile, residence, and residence of the plaintiff and his family

(가) 원고의 주민등록상 주소지는 1994. 4. 3. XX구 XX동 962 XXXX 아파트 2동 1105호로 되어 있었는데, 1997. 1. 13. 원고의 부(父) 김○○의 주소지인 XX시 XX구 XX동 1211 XX아파트 ○○○동 ○○○호로 이전되었고, 2002. 4. 23. □□시 □□동 837 ○○마을 □□□□□□ 3단지 □□□동 □□□호, 2003. 3. 31. 같은 동 861 □□마을 □단지 □□□□ 아파트 □□□동 □□□호로 이전되었으며, 2004. 2. 27. □□ □□구 □□동 964 □□□□아파트 □□□호로 이전되었다.

(B) Since a marriage with the Plaintiff around November 1989, the Plaintiff’s wife, as well as the Plaintiff, resided in ○○○○ apartment ○○○○○○○○○, 88 ○○○ apartment ○○○, and moved to ○○○○○, 2-dong, ○○○, Ma, 1994 on April 14, 1994. On April 9, 1997, the Plaintiff’s wife moved to 964 ○○ apartment ○○, 2-dong, ○○○, 1997 through 964 ○○○, ○○ apartment ○○, ○○○, ○○○, ○○, and ○○, ○○, ○○ at the same domicile as of November 20, 1998.

(C) On Aug. 30, 1994, ○○○ apartment 103 905 dong, 103 dong, and 105 dong on April 23, 2002, ○○○ Village 301 dong, and ○○○ Village 301 dong on March 111, 2003, 8 ○○ Village 8 ○○○○ apartment ○○○○○ apartment ○○○ ○○ ○○ ○○ ○○ ○○ ○○ ○ ○○ ○○ ○○ ○○ ○○ ○○ ○○

(2) The real estate ownership relationship between the Plaintiff and Kim ○○.

(A) In addition to the farmland in this case, the Plaintiff owns 86 square meters prior to ○○○○-dong, 215-2 square meters prior to ○○-gu ○○○-dong, △△-do, △△ 215-2 square meters prior to △△ 215-3 square meters, 1,984 square meters per annum 215-3 square meters of the same Ri, and 216 square meters per annum 216 square meters. In the farmland ledger, the said farmland is written in the farmland ledger as the farmer’s percentage, the farmer’s percentage, the farmland classification marks, the son’s fluence, the fluence, and the fluence other than agriculture.

(B) Kim○-○ owns the 11,055m2, 11,055m2, 514m2, 11,000,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,000 m2,00,000 m2,000 m2,00,000 m2,00

(C) On the other hand, from around 1994, Kim ○, from around 1994, owned the building of 36-1 to 666 square meters and the building of 1st or 4th floor underground of the 4th floor of the 4th floor underground living facilities around the ground-based concrete slive of the 4th floor around the ground, and operated the rental business.

(3) Details of the Plaintiff’s business

The Plaintiff completed business registration from August 1991 to October 1994, and operated a business with a trade name called XX (Do, wholesale, retail, and showable items) at the Dong-dong and Cheongdong-dong in △-gu in △-gu in △-gu, △-gu. From January 1995 to December 12 of the same year, the Plaintiff carried on a real estate rental business with the △-dong as its place of business. From September 2006, the instant disposition of this case, the Plaintiff carried on a real estate rental business with a trade name, namely, XX building (type 7,394 square meters of business site) in △-dong in △-dong, △-gu, △-gu.

D. Determination

(1) Article 58(1) of the former Regulation of Tax Reduction and Exemption Act provides that where a farmer, who is self-employed as prescribed by the Presidential Decree, donates any of the following farmland to his lineal descendants engaged in farming as prescribed by the Presidential Decree (hereinafter referred to as a "third-party farmer"), gift tax shall be exempted on the value of the farmland in question. Article 57(1) of the Enforcement Decree of the same Act provides that Article 58(1) of the former Regulation of Tax Reduction and Exemption Act provides that a farmer, who is delegated, shall be exempted from the value of the farmland in question, shall be the Si/Gun/Gu (referring to an autonomous Gu; hereafter the same shall apply in this Article) where the farmland in question, etc. is located or a Si/Gun/Gu (referring to an autonomous Gu; hereafter the same shall apply in this Article) adjacent thereto, shall be residing in the farmland in question ( Subparagraph 1) or a person who has been directly engaged in farming for two or more years retroactively from the date of donation of the farmland in question, etc. Paragraph (2) of the same Article provides that the former Regulation of Tax Reduction and Exemption Act shall apply.

Therefore, in order to be exempted from gift tax due to the donation of farmland under the former Regulation of Tax Reduction and Exemption Act, the donor must reside in a Si/Gun/Gu located in the relevant farmland, etc. or a Si/Gun/Gu adjacent thereto and engage directly in farming for at least two consecutive years retroactively from the date of donation. In addition, the donee shall be a person who is at least 18 years old since the date of donation and has resided in a Si/Gun/Gu where the relevant farmland, etc. is located or a Si/Gun/Gu adjacent thereto and shall be a person who has been engaged in direct farming

In addition, the purpose of the above system is to support the economic activities of farmers on the premise that farming is continuing, while preserving farmland which is the physical foundation for farming. It is interpreted as a taxation requirement under the principle of no taxation without the law, or a non-taxation requirement or tax exemption requirement, barring any special circumstances, and the interpretation of tax laws and regulations should be expanded or inferred without reasonable grounds, and it is not allowed to interpret extensively or analogically without reasonable grounds, and it is in line with the principle of fair taxation (see Supreme Court Decision 97Nu20090 delivered on March 27, 1998) to interpret strictly that the provision that is clearly preferential in terms of the requirements for reduction and exemption is in line with the principle of fair taxation (see Supreme Court Decision 97Nu2090 delivered on March 27, 1998). The "person engaged in direct farming" in the above provision refers to a person who manages and cultivates farmland under his/her own responsibility without entrusting or lending the farmland, etc. to another person, even if he/she concurrently engages in farming, it cannot be viewed as a self-employed farmer (see Supreme Court Decision 292Du.

(2) 그러므로 이 사건에서 원고가 구 조세감면규제법 제58조 제2항 소정의 ´당해 농지 등에서 직접 영농에 종사하지 아니하는 자´에 해당하는지 여부에 관하여 보건대, 앞에서 인정한 바와 같이 원고는 당초에는 그 가족과 함께 □□ □□구 □□동 소재 아파트에서 거주하다가 1997. 1. 13.에 이르러 그의 부가 거주하고 있는 △△시 △△구 △△동으로 주민등록상 주소지를 전입하였으나, 그의 가족들은 여전히 위 ○○동 소재 아파트에서 거주하고 있었던 점, 원고는 종전에 도ㆍ소매업 및 부동산임대업을 영위하였었던 점, 원고는 다른 직업 없이 이 사건 농지와 원고 및 김○○ 소유의 다른 농지를 자경하여 벼, 채소 등을 재배하였으나 가족들끼리 소비하여 매출처 등을 밝힐 수 없다고 하고 있는데, 이 사건 농지 및 다른 농지에서 별다른 소득을 얻지 못하고 다른 직업도 영위하지 아니하였다면 가족들의 생계비에 대한 출처가 막연할 뿐만 아니라, 이 사건 농지를 비롯한 원고 및 김○○ 소유의 다른 농지가 상당하여 이를 기반으로 하는 소출이 상당할 것으로 보임에도 이를 원고 가족들이 모두 소비하였다는 점은 쉽게 납득이 가지 아니하는 점, 원고의 부 김○○는 □□시 □□구 □□동 소재 근린생활시설을 소유하면서 임대업을 영위하고 있는데 원고 스스로 위 임대업을 도와주었다고 하고 있는 점 등 이 사건 변론에 나타난 모든 사정을 종합하여 볼 때, 원고는 이 사건 농지를 증여받은 후 이사건 농지를 직접 경작하였다고 보여지지 아니하고, 가사 직접 경작하였다고 하더라도 다른 직업에 전념하면서 농업을 간접적으로 경영하였던 것에 불과하다고 보여진다. 나아가 앞에서 본 바와 같이 이 사건 농지의 증여일은 2002. 12. 24. 및 같은 달 31.인데, 원고는 이 사건 소송에서 스스로 적어도 2002. 2.경까지 XX시 소재 주식회사 XXXXX에서 근무하고 있었다고 자인하고 있는 점을 고려해 보면, 원고가 가사 2002. 3.경부터 이 사건 농지와 인접한 XX시 또는 XX시에서 실제로 거주하면서 영농에 종사하였다고 하더라도, 원고는 이 사건 증여 당시 구 조세감면규제법 시행령 제 57조 제2항, 제1항 제2호 소정의 증여일로부터 소급하여 2년 이상 계속하여 직접 영농에 종사하고 있던 자에 해당하지 아니하였다. 또한 증여세 면제대상에 해당하기 위하여는 수증자뿐만 아니라 증여자도 구 조세감면규제법 시행령 제57조 제1항 소정의 요건에 해당하여야 할 것인데, 앞에서 인정한 바와 같이 증여자인 김○○가 1994.경부터 부동산임대업을 영위하러 온 것으로 볼 때, 김○○는 이 사건 증여 당시 다른 직업에 전념하면서 농업을 간접적으로 경영한 것에 불과한 경우라고 보여지니 위 시행령 제57조 제1항 소정의 요건에 해당하는 자경 농민이었다고 보기도 어렵다, 따라서 어느 모로 보나 원고는 이 사건 농지에 관하여 당초부터 구 조세감면규제법 제58조, 같은 법 시행령 제57조 소정의 증여세 면제대상에 해당할 여지가 없었다고 판단된다.

(3) Therefore, the instant disposition imposed by the Plaintiff on the instant farmland that is not subject to exemption from gift tax under the former Tax Reduction and Exemption Control Act is lawful.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit. It is so decided as per Disposition.

Related Acts and subordinate statutes

○ Exemption from gift tax on farmland, etc. donated to a farming child under Article 58 of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 5516, Sep. 16, 1998; Act No. 5584, Dec. 28, 1998; Act No. 5584, Dec. 28, 1998

(1) Where a self-employed farmer prescribed by Presidential Decree (hereafter referred to as "self-employed farmer" in this Article) donates any of the following farmland, grassland, and forest land (hereafter referred to as "farmland, etc." in this Article) to his/her lineal descendants engaged in farming prescribed by Presidential Decree (hereafter referred to as "farmers" in this Article), the gift tax on the value of the relevant farmland, etc. shall be exempted:

In such cases, the amount of farmland, etc. exempted from gift tax shall be limited to the amount prescribed in any item of subparagraph 1 on the basis of a self-employed farmer.

1. Farmland, etc. falling under any of the following items:

(a) Farmland which is subject to the farmland tax under the Local Tax Act (including the case of non-taxation, tax reduction and exemption and collection by small amount), and of which 29,700 square meters or less;

(2) When farming children, who received a donation of farmland, etc. exempted from the gift tax pursuant to the provisions of paragraph (1), transfer the relevant farmland, etc. within five years from the date when such farmland, etc. is donated to him/her or do not engage directly in farming in the relevant farmland, etc. without justifiable grounds, the amount equivalent

○ The former Restriction of Special Taxation Act (amended by Act No. 6297, Dec. 29, 2000; Act No. 7003, Dec. 30, 2003; Act No. 5584, Dec. 28, 1998; Act No. 5594, Dec. 28, 1998; Act No. 6297, Dec. 29; Act No. 6297,

(1) The previous provisions shall apply to the follow-up management and collection of farmland, etc. exempted from gift tax pursuant to Article 58 of the previous Regulation of Tax Reduction and Exemption Act before this Act enters into force.

(2) With respect to the farmland, etc. subject to exemption from the gift tax pursuant to Article 58 (1) of the previous Regulation on Tax Reduction and Exemption Act at the time this Act enters into force, which is donated by a self-employed farmer to his children not later than December 31, 2003, the gift tax shall be exempted pursuant to Article 58 (2) through (5) of the previous Regulation on

Article 57 of the former Enforcement Decree of the Regulation of Tax Reduction and Exemption Act (amended by Presidential Decree No. 15932, Nov. 16, 1998; Presidential Decree No. 15976, Dec. 31, 1998; Presidential Decree No. 15976, Dec. 31, 1998; Presidential Decree No. 15976,

(1) The term "self-employed farmers determined by Presidential Decree" in the main sentence of Article 58 (1) of the Act means those who meet all of the following requirements:

1. The person shall reside in a Si/Gun/Gu (referring to an autonomous Gu; hereafter the same shall apply in this Article) in which the relevant farmland, etc. is located or a Si/Gun/Gu adjacent thereto;

2. He is required to be directly engaged in farming for not less than two years retroactively from the date of donation of the relevant farmland, etc.

(2) The term “ lineal descendants engaged in farming as prescribed by the Presidential Decree” in the main sentence of Article 58 (1) of the Act means the lineal descendants of a person meeting the requirements under paragraph (1) who are 18 years of age or older as of the donation date of the relevant farmland, etc. and meet all the requirements under each subparagraph of paragraph (1): Provided, That in the case of a farming planner as prescribed by

(5) "Justifiable reasons prescribed by Presidential Decree" in Article 58 (2) of the Act means the cases falling under any of the following subparagraphs:

1. Where expropriated under the Land Expropriation Act and other Acts;

2. Where they are transferred to the State or local governments.

3. Where the farmland, etc. is changed to another land category that can not be used as farmland, etc. due to the land readjustment project under the Rearrangement of Agricultural and Fishing Villages Act or the

4. Where the farming offspring dies;

5. Where a farming child emigrates to overseas under the Acts; and

6. In cases of the exchange, division, or combination of farmland, or substitute land for farmland under subparagraphs 2 and 4 of Article 89 of the Income Tax Act, where the combined period of self-sufficiency of farmland after the exchange, division, or substitution is eight years or more.

7. Where any inevitable cause prescribed by the Ordinance of the Ministry of Finance and Economy exists.