Whether the officially assessed land price for the land designated as reserved land is applied

When the donation of the land designated as a reserved land is made, the value of donated property shall be assessed in consideration of the appraised value of the reserved land other than the officially assessed land

Article 60 of the Inheritance Tax and Gift Tax Act

Article 61 of the Inheritance Tax and Gift Tax Act: Appraisal of Real Estate

1. The plaintiff's claim is dismissed.

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

The Defendant’s disposition of imposition of gift tax of KRW 174,165,280 against the Plaintiff on July 1, 2005 shall be revoked.

1. Details of the disposition;

A. In Jung-gu, Incheon, 00224-8 28 m29 m2, 354-1 road, 132 m2 m2, 354-3 m25 m25 m2, 354-4 m274 m274 m274, 224-2 m23 m24-2, 353 m23 m23, 356 m271 m271 m2 (hereinafter referred to as "previous land" in total; hereinafter referred to as "specific m20 m26 m271 m2, which is the Plaintiff's father.

B. The previous land was designated as each of the planned land substitution area with the 360.2 square meters per 53 block block, 224-2, 353, and 354-5 square meters per 53 block, by means of a land substitution and rearrangement project of 00 April 14, 2003, and each of the above planned land substitution area was designated as 407.8 square meters per 53 block (hereinafter referred to as "each of the planned land substitution area in this case"). The land category of each of the above planned land substitution area is "site" and the general residential area is included.

C. On February 17, 2004, the Plaintiff donated the previous land from ○○○, and assessed the value of donated property to 220,961,496 won based on the officially assessed individual land price as of January 1, 2003, and reported and paid KRW 25,373,070 on the gift tax.

D. However, the Defendant did not recognize the value of donated property reported by the Plaintiff on the ground that the previous land constitutes land for which the publicly assessed individual land price has not been designated, but assessed the appraised value of KRW 839,424,00 on July 19, 200 by two appraisal corporations requested to appraise each of the instant land for replotting pursuant to the proviso of Article 61(1)1 of the Inheritance Tax and Gift Tax Act and Article 50(1) of the Enforcement Decree of the same Act as the value of donated property, and imposed gift tax of KRW 174,165,280 on July 19, 2005 (hereinafter “instant disposition”).

(In fact that there is no dispute, Gap 1, 3, Gap 4, and 5 respectively, evidence Nos. 1 through 7, Eul 1 through 4, Eul 7, Eul 8-2, and the purport of the whole pleadings.

2. Whether the disposition on the rejection of the instant case is legitimate

A. The parties' assertion

The defendant asserts that the disposition of this case is lawful in accordance with the relevant laws and regulations, while the plaintiff asserts that the disposition of this case is unlawful on the following grounds.

(1) On January 1, 2003, since the officially assessed individual land price as of January 1, 2003 was publicly announced as of the previous land at the time of donation, the previous land does not constitute a land without a publicly assessed individual land price. However, there is an error of law by deeming

(2) In cases where the father of the Plaintiff, who is a self-employed farmer, donated farmland to the Plaintiff, the father, who is a self-employed farmer, falls under the subject of exemption from gift tax pursuant to Article 58 of the former Regulation of Tax Reduction and Exemption Act, and thus, the gift

(b) Related statutes;

m. Inheritance Tax and Gift Tax Act

Article 60. Principles, etc. of Appraisal

(1) The value of property on which an inheritance tax or gift tax is levied under this Act shall be the market price as of the date the inheritance commences or the date of donation (hereinafter referred to as the "date of appraisal"). In such cases, the value (excluding cases falling under the provisions of Article 63 (2)) appraised by the method of appraisal stipulated in Article 63 (1) 1 (a)

(3) In applying paragraph (1), where it is difficult to compute the market price, the price assessed by the methods prescribed in Articles 61 through 65 shall be based on the types, scale, transaction conditions, etc. of the relevant property.

(4) In applying paragraph (1), the value of the donated property added to the value of the inherited property pursuant to Article 13 shall be based on the market price as of the date of donation.

Article 61 Appraisal of Real Estate, etc.

(1) Real estate shall be appraised by the following methods:

1. Land:

The officially assessed individual land price under the Public Notice of Values and Appraisal of Real Estate Act (hereinafter referred to as the "officially assessed individual land price"): Provided, That the value of the land for which no officially assessed individual land price exists shall be the amount appraised by the method as determined by the Presidential Decree in consideration of the officially assessed individual land price of neighboring similar land, and with respect to the land in the area prescribed by the Presidential Decree

【Enforcement Decree of the Inheritance Tax and Gift Tax Act

Article 50 Appraisal of Real Estate

(1) For the purpose of the proviso of Article 61 (1) 1 of the Act, the term “amount appraised by such method as prescribed by the Presidential Decree” means the value appraised by the superintendent of the competent tax office having jurisdiction over the location of the relevant land (where there is a difference between the superintendent of the competent tax office having jurisdiction over the location of the relevant land and the superintendent of the competent tax office having jurisdiction over the location of the relevant land, it shall be the head of the competent tax office having jurisdiction over the location of the relevant land) pursuant to the comparative table pursuant to Article 9 (2) of the Public Notice of Values and Appraisal of Real Estate Act, on the neighboring land which

1. Newly registered land under the Cadastral Act;

2. Any land partitioned or merged under the Cadastral Act;

3. Land whose land category has been changed due to the change of land form and quality or change of use;

4. Land (including State and public land) for which a determination and public announcement of the officially assessed individual land price are omitted;

(6) In applying Article 61 (1) 1 of the Act, the officially assessed individual land price shall be publicly announced as of the standard date of appraisal.

/ Urban Development Act

Article 19 Deemed authorization, permission, etc.

(1) In preparing or approving an implementation plan under Article 17, with respect to permission, approval, examination, authorization, report, license, registration, consultation, designation, cancellation, disposition, etc. (hereinafter referred to as "authorization, permission, etc.") falling under each of the following subparagraphs with respect to the implementation plan concerned, about which the designation authority has consulted with the heads of administrative agencies concerned under paragraph (3), it shall be deemed that the relevant authorization, permission, etc. has been granted, and when an implementation plan is publicly announced under Article 18 (1), authorization, permission, etc. under relevant Acts shall be deemed publicly announced

8. Permission or consultation on the diversion of farmland under Article 36 of the Farmland Act;

Article 34. Designation of reserved land for replotting

(1) When it is necessary for implementing an urban development project, any implementer may designate a land as a planned land substitution area for the land within an urban development zone. In such cases, where there exist persons with rights of lease, etc. to previous land, he/she shall also designate the relevant land as

(2) The provisions of Article 28 (3) and (4) shall apply mutatis mutandis to the case where the undertakers referred to in Article 11 (1) 4 through 7 intend to designate the land scheduled for substitution under paragraph (1).

(3) Where an operator intends to designate a reserved land for replotting under paragraph (1), he/she shall notify the location and area of the reserved land for replotting and the effective date of the designation.

Article 35 Effect of Designation of Reserved Land for replotting

(1) Where a reserved land for replotting is designated, the landowners, persons with rights of lease, etc. concerning the previous land may exercise their rights as to the reserved land or the relevant parts from the effective date of the designation of the reserved land for replotting to the date when the replotting disposition takes place.

(2) Where there are objects that may obstruct the use of or profits from the relevant land or any other special reasons at the time of designating the land scheduled for substitution under Article 34 (1), the executor may separately set the date of commencing the use of or profits from the land scheduled for substitution.

(3) When the designation of a reserved land for replotting takes effect or the use of a reserved land for replotting or the profits therefrom commences under paragraph (2), the previous owners or holders of rights, etc. of the relevant reserved land for replotting shall not use or enjoy profits therefrom, and shall not interfere with the exercise of rights under paragraph (1).

(4) Any undertaker may, when a land reserved for replotting has been designated for the purpose of land reserved for development outlay under Article 33, permit to use or profit from such land or dispose of such land to cover expenses incurred in any urban development project

(5) Where a reserved land for replotting has been designated for land which is the object of the right of lease, etc., the provisions of Articles 47 and 48 shall apply mutatis mutandis to increase and decrease in or waiver of rights, etc.

(1) The former Regulation of Tax Reduction and Exemption Act (amended by Act No. 5584, Dec. 28, 1998; hereinafter referred to as the " Restriction of Special Taxation Act")

Article 58 (Exemption of Gift Tax on Farmland, etc. Donated to Farming Children

(1) Where a farmer who is self-employed as prescribed by the Presidential Decree (hereafter referred to as "self-employed farmer" in this Article) donates farmland, grassland, or forest land (hereafter referred to as "farmland, etc." in this Article) falling under any of the following subparagraphs to his/her lineal descendants engaged in farming as prescribed by the Presidential Decree (hereafter referred to as "farmers" in this Article), the gift tax on the value of such farmland, etc. shall be exempted. In this case, the farmland, etc. on which the gift tax is exempted

1. Farmland, etc. falling under any of the following items:

(a) Farmland which is subject to the farmland tax under the Local Tax Act (including the case of non-taxation, reduction and exemption and small collection) and is not more than 29,700§³;

2. Farmland, etc. located outside the residential, commercial and industrial areas as prescribed in Article 17 of the Urban Planning Act;

3. Farmland, etc. located outside the prearranged area under the Housing Site Development Promotion Act and the development project area as prescribed by the Presidential Decree; and

(3) The provisions of Article 33 (4) shall apply mutatis mutandis to the case where the tax amount exempted under paragraph (1) is collected under paragraph (2).

(4) Farming children who intend to be exempted from the gift tax pursuant to paragraph (1) shall file an application for tax exemption under the conditions as prescribed by the Presidential Decree.

(5) The value of such farmland, etc. as donated under paragraph (1), which is exempt from the gift tax, shall not be included in the value of donated property added to the taxable amount of inheritance taxes under Article 13 (1) of the Inheritance Tax

(1) Enforcement Decree of the former Regulation of Tax Reduction and Exemption Act (Specialized Act No. 15976, Dec. 31, 1998; hereinafter referred to as the "Enforcement Decree of the Restriction of Special Taxation Act").

Article 57 (Exemption of Gift Tax on Farmland, etc. Donated to Farming Children)

(4) The term “development project area as prescribed by the Presidential Decree” in Article 58 (1) 3 of the Act means the following subparagraphs:

1. Industrial complex under the Industrial Sites and Development Act;

2. The distribution complex under the Promotion of Distribution Complex Development Act; and

3. Tourist complexes as prescribed by the Tourism Promotion Act;

4. Development project area accompanied with the diversion of farmland, etc., where permission, approval or consent for the diversion of farmland, etc. is obtained or is deemed to have been obtained pursuant to the Farmland Act, Grassland Act, Forestry Act, or other Acts.

【Special Taxation Act

Addenda (Law No. 5584, Dec. 28, 1998)

Article 15 (Transitional Measures concerning Exemption from Gift Tax on Farmland, etc. Donated to Farming Children)

(1) The previous provisions governing the follow-up management and index of farmland, etc. exempted from gift tax pursuant to the provisions of Article 53 of the previous Regulation of Tax Reduction and Exemption Act before this Act enters into force shall apply.

(2) With respect to the farmland, etc. subject to exemption from the gift tax under Article 58 (1) of the previous Regulation of Tax Reduction and Exemption Act at the time of entry into force of this Act, which is donated to the farming children by the ordinary farmers and fishermen not later than December 31, 2006, the gift tax shall be exempted pursuant to Article 58 (2) through (5) of the previous Regulation of Tax Reduction and Exemption Act (amended by December 30, 203).

/ Farmland Act

Article 36 (Permission to Divert Farmland and Consultation)

(1) A person who intends to divert farmland shall obtain permission from the Minister of Agriculture and Forestry after obtaining confirmation from the Farmland Management Committee having jurisdiction over the location of the farmland, except in cases falling under any of the following subparagraphs. The same shall apply to cases where the area of the permitted farmland or its boundary, etc. is intended to modify

1. Where farmland is diverted through consultation legally construed as permission on the diversion of farmland under other Acts;

C. Determination

(1) Whether the previous land constitutes “where there is no individual land price”

As in assessing the standard market price at the time of acquisition, the previous land is not based on the land, but on the basis of the publicly notified individual land price in this case, in assessing the value of the previous land, as well as the previous land, when the land is used as the object of the transaction in a state where the land was designated as the object of the transaction (see, e.g., Supreme Court Decision 96Nu8734, Jun. 24, 1997). As in assessing the value of the previous land, the officially announced individual land price in each of the instant land substitution is not the previous land, but the individual land price of each of the instant land substitution was not determined and publicly notified at the time the Plaintiff was donated. Ultimately, the previous land at the time of the Plaintiff’s donation constitutes a case where there was no officially announced individual land price.

Therefore, it is lawful for the Defendant to evaluate the value of donated property in consideration of the appraisal value of the appraisal institution for the instant land scheduled for substitution. Therefore, this part of the Plaintiff’s assertion is without merit.

(2) Whether it constitutes a subject of exemption from gift tax pursuant to Article 58 of the former Regulation of Tax Reduction and Exemption Act

In order to apply Article 58 of the former Act on the Regulation of Reduction and Exemption of Land, etc., it shall be applicable to the "farmland, etc. located outside the area designated as the development project area prescribed by the President (see Article 58 (1) 3 of the same Act)" (see Article 58 (1) of the same Act). The term "development project area prescribed by the Presidential Decree" refers to the development project area involving the diversion of farmland, etc., and "area for which permission, approval, or consent for the diversion of farmland, etc. has been obtained or is deemed to have been obtained under the provisions of the Farmland Act, Grassland, Forestry Act, or other Acts" (see Article 57 (4) 4 of the Enforcement Decree of the same Act), and each of the instant reserved land in this case refers to the land category designated by the "Land readjustment and Rearrangement Project of Land, etc. by the "Land Rearrangement and Rearrangement Project of Land, etc." as the development project area involving the diversion of farmland, etc. pursuant to Article 19 (1) 8 of the Urban Development Act, and thus, it does not constitute the subject of gift tax exemption.

3. Conclusion

Therefore, the disposition of this case is legitimate, and the plaintiff's claim of this case is dismissed as it is without merit, and it is so decided as per Disposition.