1. All of the plaintiffs' claims are dismissed.

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

Details of the disposition

Plaintiff

A is the spouse of the inheritee E (hereinafter referred to as the “ inheritee”), and the rest of the Plaintiffs are the children of the inheritee.

As the decedent died on June 28, 2015, the Plaintiff solely inherited the aggregate of 11,719 square meters in total, and 5,039 square meters in total, 3 square meters in Bupyeong-gu, Incheon, Bupyeong-gu, Incheon (hereinafter “instant land”). The rest of the Plaintiffs jointly inherited the 2,171 square meters of the H factory site and 788.3 square meters in its ground factory (hereinafter “instant factory”) at Kimpo-si, and the Plaintiffs succeeded to other real estate and financial assets of the decedent.

On December 28, 2015, the Plaintiffs considered the instant land as the property inherited to farming, and completed the inheritance tax return at the tax base amount calculated by subtracting KRW 500,000,000 from the market value of the instant land from the taxable value of inherited property.

In relation to the defendant, the director of the Central Regional Tax Office denied the deduction for farming inheritance on the ground that there is no objective evidence proving that the plaintiff cultivated the land in this case for two consecutive years prior to the commencement date of the inheritance. Since the area of the factory in this case was omitted for 325 square meters, he notified the plaintiff that the appraised amount of 10,164,70 won should be included in the value of inherited property. On October 5, 2016, the defendant issued a disposition to correct the inheritance tax amount of the plaintiffs as KRW 1,404,291,337 (including additional tax for negligent return 22,235,97 won and additional tax for negligent return 24,442,437 won) and impose tax amount of KRW 348,571,030.

The Plaintiffs dissatisfied with the above disposition and filed an appeal with the Tax Tribunal on October 18, 2016. On June 27, 2017, the Tax Tribunal: (a) determined that the Plaintiffs could not be deemed to have omitted the area of the factory of this case from the assessed value of KRW 10,164,700, as corrected, on the ground that it cannot be deemed that the Plaintiffs had omitted the area of the factory of this case; and (b) determined the tax base and tax amount calculated by deducting the assessed value of KRW 10,164,7