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1. All of the plaintiffs' claims are dismissed.
2. The costs of lawsuit are assessed against the plaintiffs.
Reasons
1. Details of the disposition;
A. E Co., Ltd. (hereinafter “E”) was established on July 10, 2008 as an unlisted corporation for the purpose of printing business, etc.
B. On January 1, 2012, F acquired 3,500 shares E (hereinafter referred to as “instant shares”) from G, other than specially related persons provided for in Article 35(2) of the former Inheritance Tax and Gift Tax Act (amended by Act No. 11845, May 28, 2013; hereinafter referred to as “former Inheritance Tax and Gift Tax Act”); Article 26(4) of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 23591, Feb. 2, 2012; hereinafter the same) at a face value of KRW 5,00 per share.
(hereinafter referred to as "market transaction"). (c)
After that, on August 22, 2013, F died (hereinafter “the deceased”), and Plaintiff A, the deceased’s spouse, and Plaintiff B, C, and D, the children of the deceased, respectively, inherited the key shares by inheritance shares.
After conducting a tax investigation on the details of change in E’s stocks from May 30, 2016 to April 28, 2017, the director of the Central District Tax Office: (a) determined that: (b) he/she received shares at issue at “5,000 won per share”; (c) without justifiable grounds under Article 35(2) of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act, he/she received shares at “381,372 won per share”; and (c) notified the Defendant of gift tax at KRW 381,372 x 3,500 x 3,500 x 3,500 x 3,500 x 3,000 won per share; and (c) notified the Defendant of gift tax at KRW 1,317,302,000 per share; and (c) notified the Defendant of gift tax at KRW 381,500 x 3,500 x 3,000.
Article 35 (2) of the former Inheritance and Gift Tax Act provides that if a person who is not a related party takes over an asset at a price significantly lower than the market price without justifiable grounds in light of transaction practices, the transferee of the asset shall be presumed to have received the donation of the amount equivalent to the difference between the price and the market price.