Disciplinary Tax Division-3827 (Law No. 22, 208)

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In case where a return is not made due to a difference in the appraised value of inherited or donated property or due to an error in the application of deduction, no additional tax on negligent tax shall be imposed on such property, because it falls under a justifiable reason for failing to fulfill the duty to report: Provided, That an additional tax on negligent tax for unpaid or insufficient tax amount shall

E In the case of E-Question, we refer to the existing case of inquiry (Tax Policy of the Ministry of Finance and Economy-1386, December 6, 2007).

Article 48 of the Framework Act on National Taxes 【Reduction and Exemption of Additional Taxes】

1. A summary of the contents of inquiry;

Whether a report on tax base falls short of the provisions of each subparagraph of Article 78(1) of the former Inheritance Tax and Gift Tax Act (amended before December 30, 2006), and whether a case constitutes “justifiable cause” under Article 48(1) of the Framework Act on National Taxes.

2. Materials on the contents of questioning;

(a) related tax laws and regulations (law, enforcement decree, enforcement rule, basic rules);

○ Article 48 of the Framework Act on National Taxes 【Reduction, Exemption, etc. of Additional Tax】 (No. 30 December 30, 2006 amended)

(1) Where penalty tax is to be imposed under this Act or any other tax-related Act, if the ground for such imposition corresponds to that for extending the due date under Article 6 (1) or the taxpayer has any justifiable ground for non-performance of the duty, the Government shall not impose penalty tax (amended by December 30, 2006).

(3) Any person who intends to have an additional tax reduced or exempted under paragraph (1) or (2) may file an application therefor under the conditions as prescribed by the Presidential Decree.

(b) Similar cases (established rules, interpretation cases, review, adjudication, judicial precedents).

○ Tax Policy-1386, December 6, 2007

In a case where the assessment value of inherited or donated property falls short of the tax base to be reported due to a difference in the assessment value under each subparagraph of Article 78(1) of the former Inheritance Tax and Gift Tax Act (amended by Act No. 8139, Dec. 30, 2006) or a mistake in applying deductions, no additional tax on negligent tax returns shall be imposed on the inherited or donated property, since the taxpayer under Article 48(1) of the Framework Act on National Taxes has a justifiable reason for failing to fulfill his duty to report: Provided, That the additional