Seoul High Court 2011Nu33121 (Law No. 11 December 2012)

It is reasonable to apply the heavy taxation rate of capital gains tax to consider the transfer of the instant housing as three houses owned by one household.

At least 1/3 shares at the time the Plaintiff transferred the instant house, and the Plaintiff’s assertion that the instant house was nominal trust cannot be accepted.

Article 89 of the Income Tax Act

2012Du12747 Revocation of Disposition of Imposing capital gains tax

CivilAA

Director of the District Office

Seoul High Court Decision 2011Nu33121 Decided May 11, 2012

December 26, 2013

The appeal is dismissed.

The costs of appeal are assessed against the Plaintiff.

The grounds of appeal are examined.

After finding the facts as stated in its reasoning based on the evidence employed by the court below, the court below rejected the plaintiff's assertion that, at the time of the plaintiff's transfer of the house in this case, the plaintiff owned the OB house as at least 1/3 shares, and the plaintiff's husband KimB also owned the OB house as at least 1/6 shares, and thus, the disposition of this case is lawful, which imposed capital gains tax on the plaintiff by applying the heavy taxation rate. The plaintiff's assertion that KimCC is the actual owner of the OB house in this case, but only entrusted the name of the owner to KimB was not proven.

Examining the record in light of the relevant legal principles, the aforementioned recognition and determination by the lower court is justifiable. In so doing, it did not err by exceeding the bounds of reasonable free evaluation in violation of logical and empirical rules regarding the recognition of title trust, or by misapprehending the legal doctrine on the principle of substantial taxation, as alleged in the ground of appeal by the Plaintiff.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.