The case holding that the purpose of tax avoidance is no longer because the seller of farmland refuses the registration of transfer under the name of the company, which is the actual purchaser, due to the transfer income tax relationship, and the buyer company is aware of the fact that the registration of transfer under law

In addition, if a petroleum company, with the knowledge of the fact that it could not pass the registration of ownership transfer in the name of the above company, which is a corporation as a capital gains tax relation, made a title trust to an individual with the knowledge that it could not pass the registration of ownership transfer in the name of the company, and filed a report on the registration of ownership transfer in the name of the individual, and if the above land was used as the principal station of the above company, it cannot be said that the above company purchased the above land and completed the registration of ownership transfer in the name of the above company with the intention of evading the gift tax by concealing the fact of donation.

Article 32-2(1) of the Inheritance Tax Act

Kim Jong-nam et al., Counsel for the defendant-appellant

Head of Yongsan Tax Office

Seoul High Court Decision 87Gu1316 delivered on January 18, 1990

The judgment below is reversed and the case is remanded to Seoul High Court.

We examine the grounds of appeal.

According to the reasoning of the judgment below, the court below acknowledged the fact that the non-party Seoul Petroleum Co., Ltd purchased the land of this case with the funds of the non-party company around February 9, 1982, and completed the registration of ownership transfer under the name of the plaintiff and the non-party 1, who was a minor shareholder of the non-party company at that time, and completed the registration of ownership transfer under the name of the non-party 1, the plaintiff's assertion, that is, the non-party company's title trust and completed the registration of ownership transfer under the name of the non-party 1, is not subject to the application of Article 32-2 (1) of the Inheritance Tax Act since there is no purpose of tax avoidance. Therefore, the disposition of gift tax of this case on the ground

However, according to the statement of evidence No. 10 (Examination of Witness) and the testimony of the court below on Mar. 10, 1988 and Nov. 23, 1989, the non-party Seoul Petroleum Co., Ltd. purchased the land in this case to use it as the oil station site on Feb. 9, 1982. The seller of the land in this case stated that the non-party Seoul Petroleum Co., Ltd. cannot make the registration of ownership transfer under the name of the non-party company which is a corporation as a transfer income tax relationship, and that with respect to the land in this case as farmland, the plaintiff et al. made the registration of ownership transfer under a title trust with the knowledge that it cannot pass the registration of ownership transfer under the name of the non-party company, and made the registration of ownership transfer under the name of the non-party company with the knowledge that it was impossible to pass the registration of ownership transfer under the name of the non-party company. The whole land was included in the assets ledger and settlement of accounts of the non-party company and reported it as corporate tax return.

The court below's decision that rejected the plaintiff's above assertion is incomplete and there is an error of law in violation of the rules of evidence.

Therefore, the judgment of the court below is reversed, and the case is remanded to the court below. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Song Man-man (Presiding Justice)