All appeals are dismissed.

Costs of appeal shall be borne by each party.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Judgment on the Plaintiff’s grounds of appeal

A. For the imposition of gift tax and capital gains tax, gift tax and capital gains tax vary between the requirements, timing, and taxpayers for establishing tax liability. Therefore, in cases where the tax authority imposes gift tax and capital gains tax, each taxation is required.

Each tax item must be determined independently in accordance with the substance of the case.

If both cases are applicable, only one taxation would be possible unless there is a special provision excluding the overlapping application of both parties.

Meanwhile, Article 2(2) of the former Inheritance Tax and Gift Tax Act (amended by Act No. 8828, Dec. 31, 2007; hereinafter “the Act”) provides that “where income tax under the Income Tax Act is imposed on donated property under paragraph (1) to a donee, no gift tax shall be imposed on the donee.” However, in light of the content of the language and content thereof and the nature of the gift tax as complementary tax, where gift tax is imposed on a donee, it does not constitute a special provision excluding the overlapping application of the capital gains tax provisions and the gift tax provisions (see, e.g., Supreme Court Decisions 98Du11830, Sept. 21, 1999; 2002Du12458, May 13, 2003). On the same purport, the lower court determined that imposing a double taxation amount on the Plaintiff by imposing a transfer income tax on the difference between the actual transfer value of stocks and the value of the gift tax assessed by the supplementary method.

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