In calculating the net asset value of the corporation concerned, whether the export loss reserve and overseas market development reserve prescribed in Articles 22 and 23 of the Regulation of Tax Reduction and Exemption Act fall under the liabilities to be deducted from the net asset value of the corporation in calculating the net asset value of the corporation concerned at the time of commencement of the inheritance.

In calculating the net asset value of the corporation in order to calculate the value of stocks not listed on the Stock Exchange at the time of commencing the inheritance, corporate tax on the income accrued until the date of commencing the inheritance, which is one of the liabilities stipulated in Article 5 (5) 1 (c) of the Enforcement Decree of the Inheritance Tax Act (amended by Presidential Decree No. 12567 of Dec. 31, 198) and Article 5 (3) of the Enforcement Rule of the same Act, and resident tax and defense tax on the income that is included in the appraised value of the corporation until the date of commencing the inheritance, shall be limited to those which have already been or are to be imposed on the income that is included in the appraised value of the corporation, and the export loss reserve and overseas market opening reserve prescribed in Articles 2 and 23 of the Regulation of Tax Reduction and Exemption Act shall not be deemed to be part of the appraised value of the corporation's property from the time of inclusion of the income in the calculation of the net asset value of the corporation, and each of the above reserves shall not be offset from the reserves, and shall not be assessed even if the reserve is determined.

Article 9 of the Inheritance Tax Act, Article 5 of the Enforcement Decree of the same Act (amended by Presidential Decree No. 12567 of Dec. 31, 198), Article 5 of the Enforcement Rule of the same Act, Article 22 of the Regulation of Tax Reduction and Exemption Act, and Article 23 of the same Act

Park Ho-ju et al.

Head of Mapo Tax Office

The plaintiffs' claims are dismissed.

Litigation costs are assessed against the plaintiffs.

Among the disposition of imposition of KRW 218,92,875, and the amount of KRW 43,79,575, and the amount of KRW 205,344,303, and the amount of KRW 41,068,861, as of January 5, 1989, the part of the disposition of imposition of KRW 218,99,34,303, and KRW 43,798,575, which was imposed by the Defendant against the Plaintiff Park Jong-ju in 1989, which exceeds KRW 218,92,875, and KRW 43,79,79, and KRW 43,798,575, the portion of the disposition of imposition of KRW 205,34,303, KRW 41,068,861, each of which exceeds the amount of the inheritance tax imposed by the Plaintiff Park Jong-il in excess of the amount of KRW 1989,295,295,297.

The judgment that the lawsuit costs shall be borne by the defendant.

1. The defendant shall calculate the value of the above-mentioned property to the non-party 1, Gap evidence 2, Eul evidence 6-2, Gap evidence 5-1, Eul evidence 5-2, 3, 5-4, 8, 9, 11, 13, 16, 16-2, 17, 18-1, 4, 9-7, 9-7, 9-7, 9-7, 9-7, 9-7, 9-7, 9-7, 9-7, 9-7, 9-7, 9-7, 9-7, 9-7, 6-1, 6-1, 6-1, 6-1, 6-1, 6-1, 6-1, 6-1, 6-1, 6-2, 6-2, 3, and 9-1, 6-1, 6-2, 3, and 18-1,2,

2. The defendant asserts that the taxation disposition in this case is legitimate on the grounds of the above taxation grounds and applicable provisions of Acts. The plaintiffs asserted that the export loss reserve funds and overseas market opening reserve funds included in deductible expenses in calculating the income amount under Articles 22(3) and 23(3) of the Regulation of Tax Reduction and Exemption Act shall be included in deductible expenses in calculating the income amount in the calculation of the taxable year including the date two years (five years for export businesses as prescribed by the Presidential Decree) after the end of the taxable year including the reserve funds in deductible expenses, the amount calculated by dividing the reserves by 36 and multiplying the number of months in the taxable year concerned by the number of months in the calculation of the taxable year concerned shall be included in the calculation of the income amount in the calculation of the taxable year concerned, the above amount of 400,660, and 485 won included in deductible expenses in the calculation of the income amount in the calculation of the taxable year concerned, the defendant asserts that the above amount of corporate tax imposed on the non-party company's 20,198,14,296

The first sentence of Article 9(1) of the Inheritance Tax Act provides that the value of inherited property, the value of donated property to be added to the value of inherited property, and the value of inherited property shall be based on the current status as at the time of the commencement of inheritance. Article 5(1) of the Enforcement Decree of the same Act provides that the value according to the current status as at the time of the commencement of inheritance stipulated in Article 9 of the Act or the value as at the time of the imposition of inheritance tax shall be calculated based on the method stipulated in paragraphs (2) through (5) if it is difficult to calculate the market price at the time of commencement of inheritance. Article 9(5) of the same Act provides that the value of securities shall be assessed according to the method stipulated in subparagraph 1(b) (B) of the same Article (amended by December 31, 198), or shares which are not listed on the Central Defense Exchange shall be calculated based on the net asset value of the corporation at the time of commencement of inheritance, the net asset value of the corporation shall be calculated based on the net asset value at the commencement of inheritance under subparagraph 5(c.

Therefore, corporate tax shall be imposed on the export loss reserve funds and overseas market opening expenses; resident tax shall be imposed on whether such income falls under this category; Article 22(1) and Article 23(1) of the Regulation of Tax Reduction and Exemption Act provides that if the export loss reserve funds and overseas market opening reserve funds are appropriated as losses in order to cover the expenses for the loss incurred from the foreign exchange earnings business; and Articles 22(2) and 23(2) of the same Act provide that if such loss reserve funds and overseas market opening reserve funds shall be appropriated as losses in the calculation of the income amount for the year concerned; and if such loss reserve funds and overseas market opening expenses are not incurred from the foreign exchange earnings or incurred from such inclusion in the calculation of the income amount for the year concerned, such loss reserve funds or expenses shall be offset as losses, even if they are not charged to the non-party 1's income amount for the year concerned; and if such loss reserve funds and overseas market opening expenses are not charged to the non-party 2's income amount for the year concerned, they shall be offset as losses for the year concerned (Article 23).

3. Therefore, the plaintiffs' claims of this case seeking revocation on the premise that the defendant's taxation disposition against the plaintiffs is illegal, are without merit, and each of the costs of lawsuit is dismissed and decided as per the disposition by the plaintiffs as the losing party.

Judges Kim Jong-sung (Presiding Justice)