A statement of explanation on stock acquisition does not have any legal interest to seek confirmation of the absence of legal relations under public law.

It can not be said that there was a dispute between the plaintiff and the defendant about the legal relationship of the plaintiff, and that there was no apprehension and risk of the plaintiff's legal status.

Daejeon District Court 2015Guhap10304 Confirmation of Non-existence of Tax Liabilities

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00. Head of tax office

oly 2, 2016

2016.09.07

1. The instant lawsuit shall be dismissed.

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

Cheong-gu Office

On March 4, 2014, the Plaintiff confirmed that there is no gift tax liability for the reason that the Plaintiff received the shares listed in the attached list from ESB as a gift.

1. Basic facts

A. The Plaintiff is an employee of KW Co., Ltd. (hereinafter referred to as “instant company”). On March 4, 2014, with respect to 3,400 shares listed in the separate sheet (hereinafter referred to as “instant shares”), each share transfer procedure was completed from the Plaintiff on April 6, 2015.

B. On June 8, 2015, the director of the tax office confirmed on March 2014, that the Plaintiff acquired the instant stocks from ESB at a price significantly lower than the market price, and thereby was subject to a review of gift tax based on the acquisition by transfer at low price. In the case of subject of gift tax, a return after the deadline for gift tax was filed until June 18, 2015, and where there are justifiable reasons for acquisition at low price, evidentiary documents are shipped out. Where a return was not made after the deadline without filing a gift tax return or a return was made in an improper manner, a statement of explanation on the acquisition of stocks can be collected through a tax investigation.

[Ground of recognition] A without dispute, entry of evidence No. 1, purport of the whole pleadings

2. Whether the lawsuit of this case is lawful

A. The defendant's main defense

With respect to the instant lawsuit seeking confirmation of non-existence of the gift tax liability by asserting that the Plaintiff’s instant shares were held in title trust from EDH, the beneficial shareholder, and that it was not acquired from EDB, the Defendant asserted that the instant lawsuit was not the subject of a party litigation, and that it did not cause anxiety in the Plaintiff’s legal relationship, and thus, the Plaintiff did not have any profit to seek confirmation of non-existence of tax liability.

B. Determination

In a lawsuit for the confirmation of existence of tax liability, a lawsuit for the confirmation of existence of legal relations under public law constitutes a party litigation under Article 3 subparag. 2 of the Administrative Litigation Act (see Supreme Court Decision 99Du2765, Sept. 8, 200).

On the other hand, legal interest seeking confirmation of non-existence of legal relations in public law refers to a case where there is dispute between the parties as to the current legal relations subject to it, and the plaintiff's legal status is unstable and dangerous (see, e.g., Supreme Court Decision 2001Du2799, Dec. 27, 2002). With respect to this case, the health department and the head of the tax office sent a 's explanation letter to the plaintiff that the plaintiff should present evidence of the justifiable reason for the acquisition of the stock price of this case' to the plaintiff cannot be deemed to have brought a dispute over the plaintiff's legal relations between the plaintiff and the defendant, and thereby, the plaintiff's legal status is unstable and dangerous. Thus, the lawsuit in this case is unlawful

3. Conclusion

Therefore, the lawsuit of this case is unlawful and dismissed, and it is so decided as per Disposition.