Seoul Administrative Court 2014Guhap56383 (Law No. 29, 2016)

The taxation of comprehensive gift tax on conversion of preemptive rights to new shares and stock donation is illegal.

(See the judgment of the court of first instance) The comprehensive gift taxation is unlawful, such as the conversion of stocks to warrant certificates of a corporation and the transfer of business and change of management of stock donation transactions.

Article 42(1) of the Inheritance Tax and Gift Tax Act

Article 2(3) of the Inheritance Tax and Gift Tax Act

Seoul High Court 2016Nu37791

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○ Head of tax office

Seoul Administrative Court Decision 2014Guhap56383 decided January 29, 2016

July 14, 2016

August 25, 2016

1. All appeals by the defendant against the plaintiffs are dismissed.

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

1. Purport of claim

The Defendant’s imposition of gift tax of KRW 000 on October 00, 2012 and KRW 000 on the Plaintiff 00 and KRW 000 on the Plaintiff 00 shall be revoked.

2. Purport of appeal

The judgment of the first instance is revoked. All of the plaintiffs' claims are dismissed.

1. Quotation of judgment of the first instance;

The reasoning of this court's judgment is the same as that of the court of first instance, and thus, it is cited in accordance with Article 8 (2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act.

2. Conclusion

The decision of the first instance court is justifiable, and all appeals by the defendant against the plaintiffs are dismissed as it is without merit.