Suwon District Court 2009Guhap28 (No. 27, 2009)

Early High Court Decision 2008J 2675 ( October 13, 2008)

Where there is a restriction on sale after listing, the deemed donation of profits from listing, etc.

Even if there is a restriction on sale after listing, gift tax shall be imposed on the date on which three months elapse from the registration date of the Securities Business Association, which is before the expiration of the period of restriction on sale.

The contents of the decision shall be the same as attached.

1. The plaintiff's appeal is dismissed.

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

The judgment of the first instance shall be revoked. The defendant shall revoke the disposition of imposition of KRW 118,283,200 against the plaintiff on July 10, 200.

The reason why the court's explanation concerning this case is as follows. The plaintiff's assertion and judgment in the trial are added to the second instance court's decision, the second instance court's decision No. 20, the third instance's "No. 18," the second instance's "No. 21, the first instance court's decision No. 21, the first instance court's decision No. 20, the second instance's "No. 18, the second instance's regulation No. 6, Paragraph 4, 10 of the former Regulations on the Operation of the Association Brokerage Market."

The Plaintiff asserts that the disposition of this case is unlawful, since the Plaintiff’s extended interpretation that, even in the case of the shares of this case where the sale of which is limited for two years after its registration, the value of the property subject to gift tax or the appraised value of the shares exceeds the legal principles that are premised on the possibility of trading, thereby violating the principle of no taxation without the law, and imposes taxes on the interests that are not likely to be realized.

The pertinent provisions of this case, i.e., the profits from the listing, etc., that are, the listing, etc., the stock price increases due to listing, etc., shall be deemed as the net certificate of the assets, and thus, shall be deemed as the donation and taxable accordingly. Therefore, the issue of whether to restrict the sale of the stocks

In addition, the Plaintiff asserts that the disposition of this case imposing gift tax on the basis of the price on the settlement base date is unlawful because it excessively infringes on property rights even though the share price at the time when the sale was possible does not complete 1/10 of the share price as of the settlement date.

Since profits from lives, listing, etc. cannot be determined at the time of donation or commercial transfer of the stocks concerned, it is inevitable to calculate it based on the price on the date of settlement, which is a certain point of time after listing, and since it cannot be otherwise determined depending on the price fluctuation after the date of settlement, the above assertion cannot be accepted.

Therefore, the judgment of the first instance court is legitimate, and the plaintiff's appeal is dismissed. It is so decided as per Disposition.