The case holding that the disposition that included the property exempted from gift tax under the Regulation of Tax Reduction and Exemption Act in the value of donated property added to the value of inherited property pursuant to Article 4 of the former Inheritance Tax Act (amended by Act No. 4283 of December 31, 1990) is lawful

The case holding that the disposition that included the property exempted from gift tax under the Regulation of Tax Reduction and Exemption Act in the value of donated property added to the value of inherited property pursuant to Article 4 of the former Inheritance Tax Act (amended by Act No. 4283, Dec. 31, 1990) is lawful

Article 4 of the former Inheritance Tax Act (amended by Act No. 4283 of Dec. 31, 1990); Article 67-7 of the Regulation of Tax Reduction and Exemption Act

Plaintiff 1 and two others

The director of the tax office

Seoul High Court Decision 92Gu32700 delivered on June 15, 1993

All appeals are dismissed.

The costs of appeal are assessed against the plaintiffs.

The grounds of appeal are examined.

With respect to the plaintiffs' assertion that it is unlawful to include the property exempted from gift tax as self-farmland under the Regulation of Tax Reduction and Exemption Act in the inherited property, the court below held that there is no exception provision that the value of the property exempted from gift tax is deducted from the value of the donated property added to the value of the inherited property under Article 4 (1) of the Inheritance Tax and Gift Tax Act (amended by Act No. 4283, Dec. 31, 1990), and that Article 67-7 of the Regulation of Tax Reduction and Exemption Act is merely a provision on exemption from gift tax, and thus it cannot be inferred

In light of the provisions of Article 11-3 (3) of the Inheritance Tax Act, the above determination by the court below is proper in light of the following: (a) the interpretation of tax laws and regulations must be strict; and (b) the expanded interpretation or analogical interpretation is prohibited (see, e.g., Supreme Court Decision 86Nu92, May 26, 1987). (c) the legislative intent of adding the value of donated property within a certain period to the value of inherited property is to prevent the avoidance of the progressive burden of inheritance tax; and (d) the above determination by the court below is justifiable in light of the provisions of Article 11-3 (3) of the Inheritance Tax Act that the value of farmland subject to inheritance deduction is included in the value of donated property added, if the value of property subject to inheritance deduction is included in the value of donated property added, the inheritance deduction for the value of farmland

Therefore, all appeals are 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 on the bench.

Justices Kim Jong-ju (Presiding Justice)