Plaintiff 1 and two others (Law Firm continental Aju, Attorneys Kang Hun-gu, Counsel for the plaintiff-appellant)

Head of Suwon Tax Office

November 3, 2011

1. The Defendant’s disposition of imposition of KRW 471,08,481 (including additional tax of KRW 87,482,317) imposed on Plaintiff 1 on December 1, 2010 is revoked.

2. The costs of the lawsuit are assessed against the defendant.

The same shall apply to the order.

1. Details of the disposition;

A. On March 6, 2009, Plaintiff 2’s husband, Nonparty 1 and 3’s father (hereinafter “the decedent”) died.

B. On September 24, 2009, the Plaintiffs were 2,378,247,035 won in the value of inherited property. Since the decedent died from defoliants after defoliants due to the Vietnam War, the Plaintiffs were exempted from inheritance tax on the war dead under Article 11 of the Inheritance Tax and Gift Tax Act (hereinafter “Inheritance Tax Act”) and reported inheritance tax on the decedent’s inherited property.

C. On December 1, 2010, the Defendant: (a) conducted an inheritance tax investigation on the decedents; (b) imposed KRW 471,008,480 (including additional tax, KRW 87,482,317) calculated by adding the value of the inherited property to KRW 2,368,601,325; and (c) notified the Plaintiff 2 and 3 as a joint obligor (hereinafter “instant disposition”). The amount of tax payable by the heir is KRW 99,549,357 (21.14%) and the amount of tax payable by the heir is KRW 185,729,562 (39.43%) respectively.

D. On April 25, 201, the Plaintiffs were dissatisfied with the instant disposition and filed an appeal with the Tax Tribunal on April 25, 201, but the said claim was dismissed on June 28, 2011.

[Ground of recognition] The fact that there is no dispute, Gap's 1, 21 evidence, Eul's 1 to 3 evidence (including evidence with a serial number) and the purport of the whole pleadings

2. Whether the instant disposition is lawful

(a) Related Acts and subordinate statutes;

It is as shown in the attached Form.

(b) Fact of recognition;

The following facts are not disputed between the parties, or may be acknowledged in full or in full of the contents or images of Gap evidence 2 through 29, taking into account the whole purport of the pleadings:

(1) The decedent entered the Army on April 14, 1965 and was discharged on April 13, 1968 from Vietnam War from April 20, 196 to March 23, 1968.

(2) The decedent frequently appealed from the discharge, and the decedent was diagnosed with blood cancer called “multi-exploitable species” in 1996 and 1997, and it had been subject to blood species treatment and fladial organ transplantation in Seoul National University Hospital from February 2009.

(3) Around June 24, 2003, the decedent was designated and registered as a person of distinguished service to the State (Grade III) by the head of the Suwon Veterans' Office, and due to the diversified species, the decedent was registered as a patient suffering from actual aftereffects of defoliants under Article 3 of the Act on Assistance, etc. to Patients suffering from Actual aftereffects of defoliants.

(4) Thereafter, around February 2009, the decedent was intending to receive aviation cancer treatment with her brain death, but died on March 6, 2009. However, in the death diagnosis report issued by the above hospital, the direct death is indicated in the column of death as acute dysium hysium, intermediate events, and the pre-stigious dysium, and in the remarks column of the remarks column, the decedent stated that “the patient was exposed to defoliants, with the past history that the patient was exposed to defoliants, is closely related to the outbreak of multi-dysium, and the patient died with the aggravation and merger of multi-dysium species.”

(5) Among the lineal relatives of the inheritee, there is no person who suffers from or dies of a multi-salvable salone, and the average male life is 76.5 years old as of 2008 when following the investigation by the Statistics Korea, and the deceased’s age is 65 years old.

(6) According to the results of various epidemiological investigations, such as the report of the U.S. National Institute of Medical Sciences, it is announced that there is an epidemiological causal relationship between the exposure to harmful substances contained in defoliants and the dystrophism, and in particular, it is for not less than 20 years average diving of the outbreak of cancer contained in defoliants (see, e.g., the dysin report quoted in Seoul High Court Decision 2002Na32662, Jan. 26, 2006). Even according to the final report on the epidemiological investigation of defoliants damage conducted by the annual medical center and the Ministry of Patriots and Veterans Affairs, even if it is based on the annual medical center and the final report on the epidemiological investigation of defoliant damage caused by defoliants, the rate of the outbreak of cancer generated by the Vietnam War veterans is more significant than the total male population, and the death rate therefrom is significantly higher than the total population of Korea.

(7) The dystroke species are blood cancer that appeared from abnormal differentiation and proliferation of dystrophy cells, which is the most shaking symptoms of waste and hystrophyitis, which is the most shaking of the causes of death that occurred before diagnosis or during treatment.

C. Determination

In order to be eligible for non-taxation under Article 11(1) of the Inheritance Tax Act, inheritance commences due to death caused by war or other similar death or injury or disease incurred in the course of performing official duties in war or other equivalent duties.

In order to meet this, there should be a proximate causal relationship between the performance of war or official duties equivalent thereto and the injury and disease. However, such causal relationship does not necessarily have to be proved clearly in medical and natural science, and if it is presumed that there is a proximate causal relationship between them in light of all circumstances, it should be proved. Considering all the circumstances, including the fact that the decedent is registered as a patient suffering from actual aftereffects of defoliants, and the content of an epidemiological investigation report, etc. on the occurrence of diseases such as defoliants and dyssis, and the family history of the decedent, it is presumed that the decedent was suffering from dystrophal surgery due to harmful substances from defoliants in Vietnam by participating in Vietnam.

Furthermore, according to the above facts, according to the medical certificate of the death of the Aju University Hospital issued by the Aju University Hospital and the general symptoms of the Drative species, etc., the cause of the death of the inheritee is diverse, so eventually the inheritee died of the disease of the Drative species during the process of war (it cannot be said that the above judgment is hindered solely based on the circumstance of the Defendant’s assertion, such as the fact that the inheritee died after 30 years passed since the Vietnam War, or that the Act on the Support for Patients from Actual and Aggravated Diseases was different from the Inheritance Tax Act and the legislative purpose of the Inheritance Tax Act).

Therefore, this case constitutes a case that satisfies the non-taxation requirement under Article 11 (1) of the Inheritance Tax Act, and thus, the disposition of this case is unlawful and the plaintiffs' assertion pointing this out is with merit.

3. Conclusion

Therefore, the plaintiffs' claims are with merit, and it is decided as per Disposition by admitting them.

[Attachment Form 5]

Judge Lee Han-hoon (Presiding Judge)