A. Whether title trust is included in a trust under Article 110(1)4 of the Local Tax Act (negative)

B. The initial date in calculating the extinctive prescription of acquisition tax collection right against transfer of ownership caused by termination of title trust

A. The acquisition of ownership from the title truster on the ground of the termination of title trust is not subject to the non-taxation of acquisition tax under Article 110(1)4 of the Local Tax Act.

B. In imposing local tax (acquisition tax) on transfer of ownership on the ground of termination of title trust, the time when the local tax collection right under Article 48 of the Local Tax Act can be exercised shall be deemed to be the time when the ownership transfer registration on the land subject to taxation has been made, and the extinctive prescription shall run from

(a) Article 110 (1) 4 of the Local Tax Act, Article 79-3 (b) of the Enforcement Decree of the Local Tax Act;

[Judgment of the court below]

The head of Jongno-gu

Seoul High Court Decision 80Gu844 delivered on June 25, 1981

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

The grounds of appeal by the Plaintiff’s attorney are examined.

1. On the first ground for appeal:

According to the court below's decision, Article 110 (1) 4 of the Local Tax Act provides that acquisition tax shall not be imposed on the transfer of trust property from the trustee to the truster or his heir due to the termination or cancellation of the trust. Article 79-3 of the Enforcement Decree of the same Act (amended by Presidential Decree No. 6667 of May 5, 1973) provides that the trust refers to a trust under the provisions of the Trust Act. Meanwhile, Article 1 (2) of the Trust Act provides that the truster transfers a specific property right to the trustee or disposes of it for the benefit of the beneficiary, or causes the trustee to dispose of the property right for a specific purpose, and Article 10 (1) 1 of the same Act provides that a trust shall not be imposed on the property right to be registered or transferred from the trustee under the provisions of the Local Tax Act Article 10 (1) of the same Act, and therefore, the provisions of the Local Tax Act provides that the transfer of trust property to the trustee shall not be subject to taxation on the trust property under the provisions of Article 10 (1) of the Trust Act.

2. On the second ground for appeal:

According to the judgment of the court below, Article 48 of the Local Tax Act provides that the local government's right to impose or collect money collectible by the local government shall be extinguished by prescription if it is not exercised within five years from the time it is possible to exercise its right. Meanwhile, the defendant's disposition of acquisition tax of this case against the plaintiff shall be deemed to have acquired each share by the plaintiff's non-party who purchased the land in this case and transferred the ownership in the future of the above title trustee, and it shall not be a taxable ground, but it shall be deemed that the plaintiff cancelled the title trust as of February 26, 1980 and acquired each share of the above title trustee with respect to the land in this case as of June 19, 1980 after completing the registration of ownership transfer as of June 19, 1980, and therefore, it shall not be deemed to have been justified for the court below to have determined that the local tax can be collected under Article 48 of the Local Tax Act as of June 19, 198.

3. 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.

Justices Lee Jong-soo (Presiding Justice)