In the case of simple title trust, whether the provisions of Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981) apply to the donation (negative)

Since simple title trust cannot be deemed as a trust under the Trust Act as stipulated in Article 1(2) of the Trust Act, even if it was not registered, registered, indicated, or entered in accordance with the provisions of Article 3 of the Trust Act, it cannot be deemed that such property was donated under Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981).

Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981); Articles 1(2) and 3 of the Trust Act

Supreme Court Decision 83Nu192 delivered on July 26, 1983, 85Nu372 delivered on March 24, 1987, 85Nu363 delivered on April 28, 1987

Plaintiff 1 and three others

Head of Guro Tax Office

Seoul High Court Decision 87Gu1158 delivered on May 16, 1988

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

The constructive gift of trust property as stipulated in Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981) shall be deemed to be a trust under Article 1(2) of the Trust Act, in a case where a trust is established with respect to the property, and the trust property registered, registered, indicated, or indicated in the name of the trustee is not registered, indicated, or indicated in accordance with Article 3 of the Trust Act, if the trust property is not recorded, registered, indicated, or indicated in the name of the trustee, the truster shall be deemed to have donated the trust property to the trustee on the date such registration, registration, indication, or entry is made, and the mere title trust shall not be deemed to be a trust under the Trust Act as stipulated in Article 32-2 of the Trust Act, even if the trust property was not registered, registered, indicated, or indicated in accordance with the provisions of Article 32-2 of the said Trust Act (see Supreme Court Decision 83Nu192, Jul. 26, 1983; Supreme Court Decision 85Nu27.

In the above purport, the court below held that the defendant's taxation disposition of this case was unlawful on the ground that the shares of this case in the name of the plaintiffs cannot be deemed as a donation under the above Inheritance Tax Act. The decision of the court below is just and there is no error of law such as misunderstanding of legal principles as pointed out

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 Kim Yong-sung (Presiding Justice)