Seoul Administrative Court 2009Guhap6155 ( October 18, 2009)

Seocho 208west 2537 ( November 28, 2008)

Appropriateness of the assertion that there was no tax avoidance purpose with respect to stock title trust

It is judged that there was a purpose of tax avoidance in view of the fact that a corporation has made a free capital increase and cash dividend, that there is a substantial amount of avoidance of progressive tax rate based on dividend income, that the stock was exempted from the status of an oligopolistic shareholder by

The contents of the decision shall be the same as attached.

1. All appeals filed by the plaintiffs are dismissed.

2. The costs of appeal are assessed against the Plaintiffs.

Purport of claim and appeal

The judgment of the first instance shall be revoked. Each disposition imposing gift tax on each of the Defendants stated in the attached disposition details against the Plaintiffs shall be revoked.

The reasoning for this Court's explanation is as follows: Gap evidence additionally submitted at the trial, which is insufficient to recognize the plaintiffs' assertion, shall be rejected, and the effects of improving the financial structure such as the increase in the ratio of capital to the end of 10th day of the judgment of the court of first instance, the increase in the ratio of debt, the improvement in the ratio of other person's capital dependence, and the decrease in the ratio of short-term loans, are the same as the reasons for the judgment of the court of first instance, except for the inclusion of "the effects of improving the financial structure such as the increase in the ratio of capital to the end of 10th day of the judgment of the court of first instance," which are the same as the entry of each corresponding part of the reasons for the judgment of the court of first instance."

Therefore, the judgment of the first instance court is legitimate, and all appeals by the plaintiffs are dismissed. It is so decided as per Disposition.