The preparation of a written agreement on division of inherited property by a delinquent taxpayer to donate statutory shares in inheritance constitutes a fraudulent act.

It is reasonable to cancel the initial contract and return the original property as it constitutes a fraudulent act that deepens the debt excess of the delinquent taxpayer's debts.

Article 30 of the National Tax Collection Act: Revocation and Restoration of Fraudulent Act

○○ District Court-2019-Ban-○4060

Republic of Korea ○

○ ○

Pleadings without Oral Proceedings

September 24, 2019

1. Revocation of an agreement on the division of inherited property concluded between the Defendant and ○○○○ on the share of each of the real estate listed in the separate sheet Nos. 1 and 2 on December 28, 2016;

2. The defendant will implement the procedure for the registration of ownership transfer on the ground of the restoration of real name with respect to shares of 2/9 of each real estate listed in the separate sheet No. 1 and shares of 2/45 of each real estate listed in the separate sheet No. 2.

3. The costs of lawsuit shall be borne by the defendant.

Cheong-gu Office

The same shall apply to the order.

1. Indication of claim;

The reasons for the attached Form shall be as shown in the attached Form.

2. Applicable provisions;

A judgment without pleading (Articles 208(3)1 and 257 of the Civil Procedure Act)

Grounds of Claim

1. Tax claim against the Plaintiff’s non-party ○○

A. ○○○○ received KRW 48,345,390 from the resident tax secretary on August 2012 due to the omission of income tax, and KRW 35,081,450, and KRW 510,96,040, respectively, from the resident tax secretary on April 2014 and June 2015 on the global income tax-related recognition decision, ○○○ notified 35,081,450, and KRW 510,96,040, as stated in the tax claim statement against Nonparty ○○, but did not pay KRW 349,932,890 until now (hereinafter referred to as “instant tax claim”).

Table 1. Details of the tax claim against the non-party ○○ (unit: source)

2. The intention to commit fraudulent acts and to injure himself;

A. ○○○○ entered into an agreement on the division of inheritance (ownership transfer registration) with the content that: (a) on December 28, 2016, when the Plaintiff’s affiliated BB died and the inheritance commenced; (b) on December 28, 2016, the agreement on the division of inheritance with the content that (i) shares equivalent to one’s statutory shares in inheritance among the real estate indicated in attached Form 1, and (iii) shares in attached Form 2, among the shares in attached Form 2, donated to Defendant AA, who is one-fifth of shares in their statutory shares in inheritance; and (iv) on March 14, 2017, the Defendant completed the registration of inheritance (ownership transfer registration) with respect to each of the above real estate under his/her name (the written agreement on the division of inheritance evidence No. 2, AA’s family relation certificate under subparagraph 3, A’s agreement on the division of inheritance

B. At the time of the agreement on the division of inherited property on December 28, 2016, ○○○ transferred his/her inheritance shares on each of the above real estate to the Defendant, ○○○ did not have active property of ○○○, and the small property had 54,744,050 won for the Plaintiff’s tax liability (see Table 5, e.g., the current status of the property).

C. As a result, an agreement on the division of inherited property becomes final and conclusive with respect to inherited property which has been provisionally owned by co-inheritors upon commencement of inheritance as a sole ownership by each inheritor, or as a new co-ownership relationship, the ownership of the inherited property becomes final and conclusive, and in its nature, it can be subject to the exercise of the right to revoke a fraudulent act (see, e.g., Supreme Court Decision 2000Da51797, Feb. 9, 2001). Since an obligor’s active property reduction or an increase in negative property thereby in excess of his/her obligation, or deepening the status of excess of his/her obligation, the act detrimental to the obligee constitutes a fraudulent act (see, e.g., Supreme Court Decision 2000Da7783, Oct. 25, 2002). Accordingly, the agreement on the division of inherited property constitutes a fraudulent act against the obligee, in principle, even in cases where the joint collateral against the ordinary obligee has been reduced by waiver of his/her right to his/her share (see, e.g.

It constitutes a fraudulent act to transfer the entire inheritance shares to the taxation obligor for the purpose of evading the disposition on default of the taxation obligor, and thus, it constitutes a fraudulent act in which Nonparty Park △△△ transferred his inheritance shares to the Defendant who is the mother of his inheritance shares, thereby causing excessive debts, and the Defendant’s bad faith is presumed.

3. Reinstatement;

The real estate listed in the attached list 1 does not change the ownership, rights, and obligations owned by the defendant AA, and the defendant is obligated to return the original property as equal to 2/9, which is the legal shares of the ○○○○○○, and there is no change in the shares and rights and obligations of the defendant AA concerning the real estate listed in the attached list 2, and therefore, the defendant has the obligation to return the original property in proportion to 2/9, which is the legal shares of the ○○○○○.

4. The date on which he becomes aware of a fraudulent act;

The plaintiff was aware of ○○'s fraudulent act on June 20, 2019, which received a written agreement on the division of inherited property from the Ulsan District Court while conducting a tracking investigation on the amount of delinquent tax in this case (A evidence No. 7).

5. Conclusion

The agreement on the division of inherited property concluded between ○○ and the Defendant based on the presumption of such fact constitutes a fraudulent act stipulated in Article 30 of the National Tax Collection Act, and thus, revoked the agreement and filed the instant lawsuit with the Defendant seeking the return of originals, such as the purport of the claim.