Suwon District Court 2012Guhap763 ( November 06, 2012)

National Tax Service Review Donation 2011-0082 ( December 30, 2011)

In the light of the criminal judgment rendered as a gratuitous provision or donation, the donation constitutes a donation.

Article 76 (3) of the Restriction of Special Taxation Act provides that gift tax shall be imposed on all political funds other than legitimate political funds donated to political parties in accordance with the Political Funds Act, and it shall not be imposed on political funds violating Article 31 of the Political Funds Act.

2012Nu368444 Revocation of Disposition of Imposing gift tax

KimAAA

Head of the Pakistan Tax Office

Suwon District Court Decision 2012Guhap763 Decided November 6, 2012

April 24, 2013

May 8, 2013

1. The plaintiff's appeal is dismissed.

2. A port consumption shall be borne by the Plaintiff.

The judgment of the first instance shall be revoked. The disposition of imposition of gift tax of KRW 000 on July 1, 201 rendered by the Defendant to the Plaintiff shall be revoked.

1. Quotation of judgment of the first instance;

This court's reasoning is that "The monetary payment of this case constitutes a gift under the Inheritance Tax and Gift Tax Act" among the reasons for the judgment of the court of first instance (1) is "It is reasonable to view that the money provided by the plaintiff to BB constitutes a gift under the Inheritance Tax and Gift Tax Act, and that the money returned by BB to the plaintiff constitutes a gift under the Inheritance Tax and Gift Tax Act," and (2) "No. 2 of the five 18th 18th 1st 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 2th 2th 2th 10th 2th 2th 2th 2th 8th 2th 2th 2th 2th 2th 8th 2th 2th 2th 3th 3000.

2. Judgment on the plaintiff's assertion

A. As to the assertion on Article 76(3) of the Restriction of Special Taxation Act

Article 76 (3) of the Restriction of Special Taxation Act (amended by Act No. 9921 of Jan. 1, 2010, hereinafter referred to as the "Special Taxation Restriction Act") provides that gift tax shall be imposed on political funds other than political funds under the provisions of paragraph (1) of the same Article. Article 31 of the Political Funds Act provides that the disposition of this case imposing gift tax on the return of the money paid in violation of subparagraph 1 of Article 32 of the Political Funds Act is unlawful. Article 76 of the Restriction of Special Taxation Act provides that political funds donated by a resident to a political party, etc. shall be deducted or deducted from income under the Political Funds Act, and Article 76 (3) of the Restriction of Special Taxation Act provides that the donator shall be subject to punishment for any political funds other than political funds under the provisions of paragraph (1) of the same Article, and Article 31 of the Political Funds Act provides that any person who has received the donation shall be subject to the imposition of inheritance tax or gift tax, and that any person shall not be subject to any political funds other than those under Article 2313.

B. As to the assertion regarding abuse of the right to impose tax

The Plaintiff, the tax authorities, and the Plaintiff received the instant money from BB on June 5, 2008, while making the instant disposition, and even BB on March 28, 2008, the gift tax was imposed again on the grounds that the Plaintiff received the instant money from the Plaintiff on the grounds that it was clearly double taxation or abuse of the right to impose tax. However, the tax authorities’ imposition of gift tax on BB on the grounds that it falls under Article 76(3) of the Restriction of Special Taxation Act, etc. However, the tax authorities’ imposition of gift tax on the Plaintiff is based on the grounds that it falls under Article 76(4) and (5) of the Inheritance Tax and Gift Tax Act, and it is a different disposition on the grounds that it falls under Article 31(4) and (5) of the Inheritance Tax and Gift Tax Act. The first instance court and this court stated above, as well as Article 76(3) of the Special Taxation Act, Articles 31 and 45 of the Inheritance Tax and Gift Tax Act are regulations to achieve the purpose of taxation policy of each country, and it cannot be viewed that the Plaintiff’s abuse of gift tax authority.

3. Conclusion

Thus, the plaintiff's appeal is dismissed as it is without merit.