Whether the timing for calculating the value of donated property for the stocks held in excess of a public-service corporation is appropriate;

Pursuant to Article 39-2(2) of the Inheritance Tax and Gift Tax Act and Article 29-2(3) of the Enforcement Decree, the evaluation date of the taxable value of the shares held in excess of the public corporation shall be the evaluation date of the resolution of the general meeting of shareholders for capital reduction, which provides for the "donation of profits from capital reduction".

Seoul High Court 2015Nu60671

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Head of Sungbuk Tax Office

2014Guhap71856

2016.02.17

2016.03.09

1. The defendant's appeal is dismissed.

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

1. Purport of claim

The gift tax on the donation made on December 31, 2009 by the Defendant against the Plaintiff on August 13, 2012

The imposition of KRW 0,000,000 (including additional taxes) shall be revoked.

2. Purport of appeal

The judgment of the first instance is revoked. The plaintiff's claim is dismissed.

1. Quotation of judgment of the first instance;

The reasoning for this Court’s explanation concerning this case is as stated in the reasoning for the judgment of the first instance except for the dismissal or addition of a part of the judgment of the first instance under Paragraph (2) below. Thus, this Court cited it as it is in accordance with Article 8(2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act.

2. Parts to be removed or added;

○, on the 6th page, the tax value of the 9th class is high as the "taxable value".

○ On the 6th page, the following shall be added to the following activities:

The scope of revocation of Ghana shall be deemed to be the case.

In a lawsuit seeking revocation of a tax disposition, whether a disposition is lawful or not is determined depending on whether the amount exceeds a reasonable tax amount. The parties can submit objective tax bases and materials supporting the amount of tax until the closing of argument in the fact-finding court. When computing the legitimate amount of tax to be imposed lawfully based on such materials, only the portion exceeding the reasonable tax amount should be revoked, but in other cases, the entire amount of the tax disposition should not be revoked, and in such a case, the court does not have the duty to actively calculate the amount of tax by its authority (see Supreme Court Decision 94Nu13527, Apr. 28, 1995). In this case, there is no evidence to calculate the assessed amount per share of issued stocks of the company of this case, which is the base date for assessing the taxable value of gift tax, and therefore, the pertinent disposition in this case cannot be calculated, and therefore, the entire amount of the tax disposition in this case

3. Conclusion

Therefore, the judgment of the first instance court is legitimate, and the defendant's appeal is dismissed as it is without merit.

It is so decided as per Disposition.