The plaintiff's claim is dismissed.

Litigation costs shall be borne by the plaintiff.

Details of the disposition

B A Co., Ltd. (hereinafter referred to as “instant corporation”) is a corporation whose main business purpose is the manufacture and sale of inserted articles, which are part of the digging machines.

The father C was the largest shareholder and the representative director of the instant corporation. The Plaintiff entered D on August 19, 1996 and worked as the captain from November 30, 2009.

On December 31, 2012, the Plaintiff received 67,000 shares issued by the instant corporation (hereinafter “instant shares”) from C. On March 12, 2013, the Plaintiff retired from D’s position as a joint representative director of the instant corporation, a household business, upon taking office with C on March 12, 2013.

On March 31, 2013, the Plaintiff reported and paid KRW 247,185,200, which is calculated by deducting KRW 500 million from the taxable value of the gift tax on the instant shares, pursuant to the special taxation for gift tax on the succession to family business as stipulated in Article 30-6(1) of the former Restriction of Special Taxation Act (amended by Act No. 11614, Jan. 1, 2013; hereinafter “former Special Taxation Act”) with respect to the donation of the instant shares, pursuant to the special taxation for gift tax on the succession to family business.

Around July 2015, on the ground that the Plaintiff resigned from the representative director of the instant corporation, the Defendant: (a) deemed that the Plaintiff was no longer engaged in the family business without justifiable grounds (Article 30-6(2)1 of the former Act) within ten years from the date of donation of stocks; and (b) imposed a gift tax of KRW 769,55,600 and penalty tax of KRW 191,619,344 calculated pursuant to the Inheritance Tax and Gift Tax Act (hereinafter “the Inheritance Tax Act”) on the value of the instant stocks on November 12, 2018.

[Reasons for Recognition] Facts without dispute, Gap 1 to 4 evidence, Eul 1 evidence, and the whole purport of the pleading are as shown in the attached Form of the law.

The main point of the Plaintiff’s assertion as to the legitimacy of the instant disposition is to reduce his personnel expenses, as a self-help to overcome the deterioration of the management of the instant corporation.