If the title trust is not registered or recorded, whether the legal fiction of donation pursuant to the provisions of Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981) is made

Since title trust cannot be deemed a trust under the Trust Act, even if the fact of title trust is not registered or recorded pursuant to the provisions of Article 3 of the Trust Act, it cannot be deemed as a gift pursuant to the provisions of Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981).

Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981); Article 3 of the Trust Act

Supreme Court Decision 78Nu396 delivered on January 16, 1979, 82Nu9 delivered on June 22, 1982, decided 83Nu192 delivered on July 26, 1983

[Judgment of the court below]

The director of the tax office

Gwangju High Court Decision 84Gu87 delivered on March 5, 1985

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

We examine the grounds of appeal.

The legal fiction of donation stipulated in Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474, Dec. 31, 1981); the purport that if a trust property is a trust property under Article 3 of the Trust Act, is not registered or recorded in the securities, or is not recorded in the register of stockholders or the register of bonds, it shall be deemed that the trust property is donated to the trustee; and the simple title trust shall not be deemed a trust under the Trust Act. Thus, even if the fact of title trust is not registered or recorded in accordance with Article 3 of the Trust Act, it shall not be deemed a donation pursuant to the provisions of the former Inheritance Tax Act (see, e.g., Supreme Court Decisions 78Nu396, Jan. 16, 1979; 82Nu121, Oct. 12, 1982; 83Nu192, Jul. 26, 1983).

According to the court below's lawful determination, the non-party, the representative director of the non-party Geum River Development Co., Ltd., and the non-party, at the same time on February 27, 1980 and June 24, 198, entered 5,000 shares of the non-party company (one share price of KRW 10,00,000 in total, KRW 50,000 in total) owned by the non-party company as a trust property without stating the fact that the non-party company's shares were a trust property, and thus, it cannot be deemed as a donation under the provisions of the former Inheritance Tax Act. Accordingly, the court below's decision that the non-party's disposition of imposing the gift tax of this case was just and wrong.

Now, the argument of the lawsuit is merely to criticize the confirmation of facts belonging to the exclusive jurisdiction of the court below, which is the fact-finding court, on the ground of the misunderstanding of the inheritance tax law at the time of original adjudication.

Therefore, the appeal is 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.

Justices Park Jong-soo (Presiding Justice)