Where a successor succeeds to tax liability, the method of writing a notice.

A notice of tax payment having the effect of specifically identifying each of the tax liabilities of co-inheritors should be classified by the amount of tax to be paid individually to each of co-inheritors.

Article 177 of the Enforcement Decree

1. Revocation of a judgment of the first instance;

2. The Defendant’s imposition disposition of KRW 269,782,100 against the Plaintiffs on August 2, 2001 shall be revoked.

3. The total costs of the lawsuit shall be borne by the defendant.

1. Details of the disposition;

The following facts are either disputed between the parties, or acknowledged by considering the whole purport of the pleadings in the descriptions of Gap evidence 1, Gap evidence 2-1, 3-1, 3-6, Gap evidence 4, Gap evidence 21, Eul evidence 2-1 through 4, and Eul evidence 2-4.

A. On October 28, 1998, the ○○○○ shall sell to ○○○, a commercial building with 413 square meters in ○○○○○ located and its ground commercial buildings owned by 413 square meters and 577.12 square meters in 185.52 square meters in housing (hereinafter referred to as “each of the instant real estate” by combining the above site and buildings). On December 23, 1998, the said preliminary return was made on December 23, 1998 according to the standard market price as indicated in the attached Table of Transfer Income Tax Records, but the said preliminary return was made on May 12, 199 without paying the transfer income tax.

On April 2, 200, the defendant decided and notified capital gains tax of KRW 4,183,004 on April 2, 200 as stated in the "Notice of April 2, 2000" to the plaintiffs, who are heirs of right ○○○○, and paid it by the plaintiffs.

B. However, the Defendant pointed out that ○○ Regional Tax Office erroneously applied the standard market price of the land on November 15, 200 in the process of the initial disposition of this case, and started a tax investigation from November 15, 200, the Plaintiffs asserted that the actual transfer price of each of the instant real estate was KRW 750,000,000 on November 23, 2000, and filed a revised return on November 23, 2000 on the tax base calculated again based on the actual transaction price, as stated in the “Revised Return on November 23, 2000” column, and paid the remaining KRW 3,854,470 after deducting the already paid KRW 4,183,04 from the reported tax amount of KRW 8,037,474 (excluding the portion of KRW 570,705,017, which was claimed by the Plaintiff as the actual transfer price of each of the instant real estate).

C. After that, the defendant calculated the amount of tax by applying the standard market price of each of the real estate of this case as a result, it determined the amount of capital gains tax to be borne by the plaintiffs in relation to the above sale as KRW 277,819,583 as stated in the "Notice of August 2, 2001" of the same Table, and on August 2, 2001, notified the plaintiffs of additional imposition of KRW 269,782,10 (from KRW 269,782,109, less than KRW 10) after deducting the amount already paid from the above amount from KRW 8,037,474.

2. Whether the increased or decreased disposition is legitimate.

A. The plaintiffs' assertion

Since the plaintiffs succeeded to the transfer income tax of ○○○, the defendant should impose the transfer income tax in installments according to the inheritance shares of original Do, as if they were jointly liable to pay the transfer income tax, the full amount of the transfer income tax was notified to the plaintiff ○○○, which was unlawful in the process of imposing

In addition, since the initial disposition of this case was absorption and extinction of the disposition of this case, the plaintiffs' revised pursuant to Article 45 (1) 1 of the Framework Act on National Taxes (amended by Act No. 6303, Dec. 29, 200; hereinafter the same) is legitimate, and since the revised report is lawful, Article 96 subparagraph 1 of the Income Tax Act (amended by Act No. 6051, Dec. 28, 199; hereinafter the same shall apply) and Article 16 (4) 3 of the Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 15969, Dec. 31, 1998; hereinafter the same shall apply) and Article 166 (4) 1 of the Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 15000; hereinafter the same shall apply) should be calculated based on the actual transaction price of the deceased's 00 won and the amount of 1050 won and 700 won of the amount of transfer income tax.

B. Relevant statutes

The entries in the attached Table-related statutes are as follows.

C. Determination

According to Article 9 of the National Tax Collection Act, Article 114 of the Income Tax Act, and Article 177 of the Enforcement Decree of the Income Tax Act, when notifying the tax base and amount of capital gains tax, the head of a tax office shall notify the tax payment notice specifying the taxable year, items, amount of tax, the grounds for the calculation thereof, the deadline for payment, and place of payment, and where the transfer income tax of an inheritee is imposed on at least two heirs, he/she shall allocate the tax base and amount of tax according to their shares and notify each heir individually. Unlike other persons jointly and severally liable for tax payment, a tax payment notice that has the effect of specifically establishing each tax obligation against coinheritors must specify the amount of tax individually payable to each co-inheritors (see, e.g., Supreme Court Decision 96Nu4749, Mar. 25, 1997). Thus, imposing the total amount of capital gains tax on the inheritor cannot be deemed a legitimate notice of tax payment. First of all,

In full view of the purport of the arguments in Gap evidence 4, 21, Eul evidence 1-1, Eul evidence 1-2, Eul evidence 5, Eul evidence 8, and Eul evidence 8, the plaintiffs' children inherited the deceased's property at the ratio of 1/3 shares of each party, and the defendant stated the plaintiffs' inheritance ratio in the "Supplementary Statement of Transfer Income Tax Decision (Evidence Gap No. 4)", which is the defendant's internal document, in disposing of the increase in this case to the plaintiffs, while the notice of tax payment in this case only stated the total tax amount to be paid by all inheritors, the tax base, tax rate, additional tax, deducted tax amount, etc., and notified the plaintiffs of the increase in this case without stating the tax amount to be paid by each heir and the tax base thereof, and on the other, there is no evidence to acknowledge that the above correction in this case's tax amount was delivered to the plaintiffs with the above notice of tax payment notice attached to the above decision of capital gains tax (Evidence No. 4).

Therefore, the instant increased disposition is illegal without the need to further examine other issues.

3. Conclusion

Therefore, the plaintiffs' claim of this case is justified, and the judgment of the court of first instance is unfair on the basis of this conclusion, so it is revoked, and it is so decided as per Disposition by the assent of all participating Justices.

Details of transfer income tax;

December 23, 1998. Declaration

April 2, 200

November 23, 2000

Revised Declaration

August 2, 2001

Transfer Value

1,211,058,500 won

1,211,058,500 won

570,705,017 won

1,220,102,600

Acquisition Value

1,151,112,832 won

1,151,112,832 won

508,879,717 won

508,893,658 won

Necessary expenses

37,664,274 won

37,664,274 won

18,612,955 won

18,613,373 won

Transfer Margin

2,281,394 won

2,281,394 won

43,212,345 won

692,595,569 won

Tax Base

12,675,772 won

12,675,772 won

23,469,214 won

482,243,804 won

calculated tax amount

3,802,731 won

3,802,731 won

7,040,764 won

232,121,902

Additional Tax

380,273 won

96,710 won

2,485,491 won

23,212,190 won

reporting; or

Amount of final tax

3,802,731 won

4,183,004 won

8,037,474 won

277,819,583 won

Amount of deducted tax

3,854,470 won

269,782,109 won

Related Acts and subordinate statutes

Framework Act on National Taxes (amended by Act No. 6303 of Dec. 29, 2000)

Article 45 (Revised Return)

(1) In any of the following cases, a person who files a tax base return by the statutory filing deadline may file a revised tax base return before the head of the competent tax office determines or corrects the tax base and amount of the national tax under the Gu affairs of each tax-related Act and notifies the tax base

1. Where the tax base and tax amount entered in the tax base return is short of those to be returned under tax-related Acts; and

National Tax Collection Act (amended by Act No. 6053 of Dec. 28, 199)

Article 9 (Notice of Tax Payment)

(1) If the director of a tax office or the head of a Si/Gun desires to collect a national tax, he/she shall issue a written notice indicating the taxable year, tax item, amount of national tax, the grounds for calculation, deadline for payment and place

Income Tax Act (amended by Act No. 6051 of Dec. 28, 1999)

Article 94 (Scope of Transfer Income) Capital gains shall be the following incomes generated during the relevant year:

1. Income accruing from transferring buildings or land;

2. Income accruing from transfer of any right to real estates determined by the Presidential Decree; and

5. Income accruing from a transfer of any assets other than those as referred to in subparagraphs 1 through 4, which are prescribed by the Presidential Decree (hereinafter referred to as “other assets”).

Article 96 (Transfer Value) The transfer value shall be the following amounts:

1. In cases of assets under subparagraphs 1, 2 and 5 of Article 94 (excluding assets prescribed by Presidential Decree), the standard market price at the time of transfer of the relevant assets: Provided, That in cases prescribed by Presidential Decree in consideration of the type, holding period, scale of transaction, transaction methods, etc. of the relevant assets, the actual market price shall apply;

2. In case of assets other than those in subparagraph 1, the actual transaction price at the time of transfer of the assets concerned: Provided, That it is impossible to confirm the actual transaction price at the time of transfer, it shall

Article 100 (Calculation of Gains on Transfer)

(1) In calculating the date of transfer, if one of the transfer or acquisition values is based on the actual market price, the other shall be based on the actual market price, and if it is based on the standard market price, the other shall be based on the standard market price: Provided, That in such cases as prescribed by the Presidential Decree, if it is possible to confirm the actual market price of either the transfer or acquisition, the actual market price shall be determined, and the other which is impossible to confirm the actual market price shall be based on the price converted by the method prescribed by the Presidential Decree.

Article 110 (Report on Determination of Tax Base of Transfer Income Tax)

(1) Any resident having any transfer income amount in the current year shall make a return on the tax base of transfer income to the chief of the tax office having jurisdiction over the place of tax payment from May 1 to 31 of the year following the current year as prescribed by

Article 114 (Determination, Revision and Notification of Tax Base for Transfer Income and Amount of Tax)

(1) The chief of the district tax office or the director of the regional tax office having jurisdiction over the place of tax payment shall determine the tax base and tax amount of the transfer income tax by a resident’s report under Article 110: Provided, That where a resident fails to make the final return of transfer income tax or final return of transfer income

(2) If the chief of a regional tax office or the director of a regional tax office having jurisdiction over the place of tax payment fails to determine the tax base and amount, or finds any omission or error after he makes the determination, he shall immediately investigate the

(3) The chief of the district tax office or the director of the regional tax office having jurisdiction over the place of tax payment shall notify in writing the resident concerned of the tax base, tax amount and other necessary matters determined under paragraph (1) from August 1 to August 16 each year under the conditions as prescribed by the Presidential Decree: Provided, That when he makes the determination or correction of the tax base

The assets provided for in subparagraph 1 of Article 94 of the Addenda (Law No. 4803, Dec. 22, 1994) that are acquired before December 31, 1984 shall be deemed to have been acquired on January 1, 1985, and the assets provided for in subparagraphs 2 through 5 of Article 94, which are prescribed by the Presidential Decree, shall be deemed to have been acquired on the date prescribed by the Presidential Decree.

The Enforcement Decree of the Income Tax Act (amended by the Presidential Decree No. 15969 of December 31, 1998)

Article 166 (Computation of Gains on Transfer)

(4) "Cases prescribed by Presidential Decree in consideration of the types, holding period, scale of transaction, transaction methods, etc. of the relevant assets" in the provisos to subparagraph 1 of Article 96 and Article 97 (1) 1 (a) of the Act means cases falling under any of the following subparagraphs:

3. Where the transferor makes a report on the actual transaction price at the time of transfer or acquisition by furnishing the evidential documents within the date of determination of tax base and tax amount of transfer income tax.

Article 167 (Special Cases in Calculation of Gains on Transfer)

(1) The date under Article 8 of Addenda of the amended Act of the Income Tax Act (Act No. 4803) (hereinafter referred to as “the date of fictitious

The current acquisition value shall be the larger of the following values:

1. The market price as of the date of fictitious acquisition (where the market price is unknown, the standard market price as of the date of fictitious acquisition);

2. Where the actual transaction price is confirmed at the time of acquisition, the amount obtained by adding up the amount calculated by multiplying the actual transaction price at the time of acquisition by the producer price inflation rate in the holding period from the date of acquisition to the immediately preceding day of the date

Article 177 (Notification of Tax Base and Tax Amount of Transfer Income Tax)

(1) The notice under Article 114 (3) of the Act shall be given in writing after entering the tax base, tax rate, amount of tax and other necessary matters in the notice. In this case, the fact that the director of a regional tax office determines the

(2) The provisions of paragraph (1) shall apply even where there is no payable tax amount.

(3) Where the chief of the district tax office having jurisdiction over the place of tax payment imposes transfer income tax on two or more heirs, he shall distribute the tax base and tax amount to each inheritor.

Inheritance Tax and Gift Tax Act (amended by Act No. 6048 of Dec. 28, 1999)

Article 15 (Inheritance, Collection, etc. of Disposal Property, etc. before Commencement Date)

(1) Where an ancestor disposes of his/her property or his/her debts, or where it falls under any of the following subparagraphs, it shall be presumed that the heir succeeds to such property:

1. Where the amount obtained by disposing of the property of an ancestor or withdrawn from the property of the ancestor is at least 200 million won by calculating it by the types of local origin within one year before the date inheritance commences, and the use thereof is not objectively clear, as prescribed by

Article 60 (Principles for Evaluation, etc.)

(1) The value of property on which an inheritance tax or a gift tax is levied under this Act shall be the market price as of the date of commencing the inheritance or of donation (hereinafter referred to as the “date of appraisal”).

(2) The market price referred to in paragraph (1) shall be the value which is generally accepted in cases of free trade between many and unspecified persons and which is recognized as the market price, such as the expropriation and public sale price and appraisal price, as prescribed by Presidential Decree.

(3) In applying paragraph (1), where it is difficult to compute the market price, the price assessed by the methods prescribed in Articles 61 through 65 shall be based on the types, scale, transaction conditions, etc. of the relevant property.

Article 61 (Appraisal of Real Estate, etc.)

(1) Real estate shall be appraised by the methods prescribed in the following subparagraphs:

1.Land

The officially assessed individual land price under the Act on Public Notice of Land Price and Evaluation of Land, etc. (hereinafter referred to as the “individual land price”), and (short omitted)

2. Buildings:

Value based on current prices determined by the Presidential Decree.

Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 16660 of December 31, 1999)

Article 11 (Scope of Property or Debt Included in Taxable Amount of Inheritance Taxes)

(1) In applying the provisions of Article 15 (1) 1 of the Act, the disposal amount and the withdrawn amount of property shall be the sum of the amounts calculated according to the classification in each of the following subparagraphs for each type of property:

1. Where an ancestor disposes of property, the amount actually earned within one year before the date inheritance commences, out of the disposal value thereof;

(2) The term "where the purposes of use is objectively unclear as prescribed by Presidential Decree" in Article 15 (1) 1 and 2 of the Act means cases falling under any of the following subparagraphs:

1. Where the other party to a transaction who has paid the amount received by an ancestor by disposing of the property or the money, etc. withdrawn from the property of the ancestor or the amount of debts borne by the ancestor (hereafter referred to as "other party to transaction" in this Article) is not verified as non-

2. Where the opposite contractual party denies the receipt of money, etc. or the fact of receiving money, etc. is not recognized considering the opposite contractual party’s financial status;

3. Where a person who has a special relationship under Article 26 (4) with an inheritee and is not recognized by social norms.

4. Where the predecessor disposes of or bears obligations, and the other assets acquired by the money, etc. is not verified;

5. Where disbursement is not recognized in light of the age, occupation, career, income, property status, etc. of the inheritee;

Article 50 (Appraisal of Real Estate)

(3) For the purpose of Article 61 (1) 2 of the Act, the term “value based on the standard market prices as determined by the Presidential Decree” means the value based on the standard market prices under Article 80 (1) of the Enforcement Decree of the Local Tax Act. In this case, where there are values of special supplementary equipment under the subparagraphs of Article 76 (1) of the Enforcement Decree of the Local Tax Act which are appraised separately from buildings under Article 80 (4)

(6) In applying Article 61 (1) 1 of the Act, the officially assessed individual land price shall be publicly announced as of the standard date of appraisal.