Seoul Administrative Court 2016Guhap61044 (2017.04.07)

Seocho 2015 Schedules 2175 (O15, 2016)

In addition to the status of beneficiary of an inheritance-type immediate pension contract, the right to receive a refund upon termination of the contract is also acquired.

It is reasonable to view that the economic value was attributed to the Plaintiff even if the Plaintiff did not acquire the status of the contractor formally as of the date of donation, and that the immediate pension insurance of this case was not actually terminated at the date of donation does not change on the ground that the Plaintiff did not actually terminate the contract

Article 60 (Principles for Evaluation of Inheritance Tax and Gift Tax)

Article 62 (Appraisal of Right to Receive Periodical Payment)

2017Nu46846

CC

head of Sung Dong Tax Office

Seoul Administrative Court Decision 2016Guhap61044 decided April 7, 2017

December 13, 2017

January 24, 2018

1. The plaintiff's appeal is dismissed.

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

1. Purport of claim and appeal

The Defendant’s imposition of gift tax on February 2, 2015 by KRW 00,00,000,000,000,000,000,000,000,00.

1. Quotation of judgment of the first instance;

The reasoning for this Court’s explanation concerning this case is as stated in the reasoning of the judgment of the first instance except for the dismissal of part of the judgment of the first instance as set forth in paragraph (2) below. Thus, the meaning of the language used in accordance with Article 8(2) of the Administrative Litigation Act and the main text of Article 420 of the Civil Procedure Act (hereinafter the same shall apply to the judgment of the first instance).

2. Parts in height:

The second 12th 13th am "Inheritance Tax and Gift Tax Act (hereinafter "the Inheritance Tax and Gift Tax Act")" is "the former Inheritance Tax and Gift Tax Act (amended by Act No. 11609, Jan. 1, 2013)".

○ Heading 13 on the 4th page “A” shall be read as “each description of evidence Nos. 1, 30, 31, and 32”.

○ 4th to 20th 5th 6th is as follows.

B) The contract owner of the instant immediate annuity insurance was changed from the original B to the original BB, and the terms and conditions of the instant immediate annuity insurance contract stipulate that the contractor shall be entitled to voluntarily terminate the instant immediate annuity insurance, so it cannot be said that the Plaintiff had the legal status to cancel the instant immediate annuity insurance as of the date of the instant donation. However, the Plaintiff and the original BB imposed gift tax on the Plaintiff and the original B, as described in the former B, respectively, on the following grounds: (i) the Plaintiff and the original B was the mother company; (ii) the director of the tax office did not acquire the economic status of the original contractor of the instant immediate annuity insurance without having acquired the economic status of the original contractor of the instant insurance contract; and (iii) the Plaintiff did not immediately transfer the economic status of the original contractor of the instant insurance contract to the original B; and (iv) the Plaintiff merely asserted that the economic status of the original contractor of the instant insurance contract would be attributed to the Plaintiff as well as the economic status of the original contractor of the instant insurance contract.

The 7th parallel 4 to 10th parallels are as follows.

former Inheritance Tax and Gift Tax Act (Amended by Act No. 11609, Jan. 1, 2013)

Article 2 (Gift Tax Taxables)

(3) The term "donation" in this Act means a gratuitous transfer (including transfer of tangible or intangible property at a remarkably low price) of any tangible or intangible property, the economic value of which can be calculated, in a direct or indirect manner, regardless of the name, form, purpose, etc. of such act or transaction, or an increase in the value of another person's property by contribution.

(4) Where it is deemed that inheritance tax or gift tax has been unjustly reduced by indirect means via a third party or by means of two or more acts or transactions, paragraph (3) shall apply by deeming that such transactions have been made directly by the parties concerned or such acts or transactions have been conducted consecutively based on the economic substance thereof.

3. Conclusion

Therefore, the judgment of the first instance court is legitimate, and the plaintiff's appeal is dismissed as it is without merit. It is so decided as per Disposition.