Seoul Administrative Court 201Guhap4532 ( November 15, 2012)

National Tax Service Review and Transfer 2010-0322 ( October 25, 2011)

there is no ground for increase in stock value constituting the donated property, and it is unlawful.

(1) The profit equivalent to the increase in stock value is not subject to the gift tax, but it is unlawful in calculating the value of the gift tax by deeming that the ownership shares or the value thereof under the Inheritance Tax and Gift Tax Act fall under the case of change in the value of the gift tax.

2012Nu38178 Revocation of Disposition of Imposition of Gift Tax

GangwonAA et al.

Head of Central Tax Office

Seoul Administrative Court Decision 201Guhap4532 decided November 15, 2012

May 8, 2013

June 19, 2013

1. All appeals by the defendant against the plaintiffs are dismissed.

2. The costs of appeal shall be borne by the Defendant.

1. Purport of claim

The Defendant’s imposition of gift tax of KRW 000 on February 10, 201 to Plaintiff Gangwon-A and the imposition of KRW 000 on Plaintiff Gangwon-B shall be revoked.

2. Purport of appeal

The judgment of the first instance is revoked. All of the plaintiffs' claims are dismissed.

1. Quotation of judgment of the first instance;

This court's reasoning is the same as the reasoning in the judgment of the court of first instance except for the following parts among the reasons for the judgment of the court of first instance, and this is cited in accordance with Article 8 (2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act.

【Additional Part】

Article 2(3) of the Inheritance Tax and Gift Tax Act provides that “The calculation of the value of the gift tax by applying Article 42(1)3 of the Inheritance Tax and Gift Tax Act (6th 14th 14th 6th 6th 6th 6th 6th 6th 14 6th 6th 6th 6th 14 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 6th 100 6th 1st 3th 6th 200,” and does not directly provide for the calculation method of the value of the gift tax acquired through the donation. This seems to be due to the impossibility of the legislation of the Inheritance Tax and Gift Tax Act’s total taxation method of the gift tax under Article 2(3) of the former Inheritance Tax and Gift Tax Act’s Article 3 of the Inheritance Tax and Gift Tax Act’s Article 3 of the Inheritance Tax Act’s Article 3 of the Inheritance Tax and Gift Tax Act’s Article 43 of the Inheritance Tax and Gift Tax Act’s Article.

2. Conclusion

If so, the defendant's appeal against the plaintiffs is without merit, all of them are dismissed.