shares of other corporations held by the largest shareholder, etc.

Article 63 (3) of the former Inheritance Tax and Gift Tax Act provides that "the stocks, etc. of the largest shareholder, etc. who is subject to evaluation shall include the stocks of other corporations held by the largest shareholder, etc.

Article 63 of Inheritance Tax and Gift Tax Act: Appraisal of Securities

2015Guhap20207 Revocation of Disposition of Imposition of Gift Tax

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○ Head of tax office

July 2, 2015

August 13, 2015

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

The Defendant’s disposition of imposing KRW 262,017,930 on the Plaintiff on November 7, 2014 and KRW 399,30,07,260 on the aggregate of KRW 137,289,330 on the Plaintiff.

1. Details of the disposition;

A. On November 1, 2013, the Plaintiff: (a) donated non-listed shares to the Defendant; (b) (c) assessed the amount of KRW 50.11% of the listed shares of ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ KRW 17,029; (d) notified the Defendant of the gift tax assessment amount of KRW 36,000 per share, KRW 16,63616.

C. On November 5, 2014, the Defendant issued a disposition to notify the Plaintiff of KRW 39,30 (hereinafter referred to as “instant disposition”) of the total amount of KRW 137,289,330 (the ○○○○) and KRW 262,017,930 (the ○○○○”) and the total amount of KRW 39,30,300,000. The Plaintiff filed a request for a trial with the Tax Tribunal on January 19, 2015, but the said request for a trial was dismissed on June 25, 2015.

[Based on Recognition] Each entry into the non-contentious facts, evidence 1, 2, Eul evidence 1, and 2 (including household numbers), and the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

The meaning of "stocks, etc." in "stocks, etc. of the largest shareholder or largest investor or a shareholder or investor who falls under the specially related person prescribed by Presidential Decree of the former Inheritance Tax and Gift Tax Act (hereafter referred to as "major shareholder, etc." in this paragraph) shall be limited to " inherited stocks or gift stocks" subject to evaluation, and it shall not include stocks of other corporations owned by the corporation subject to evaluation. Therefore, the disposition of this case, which is a corporation subject to evaluation on different premise, by adding and assessing the shares of the corporation subject to evaluation, ○○○○○ and ○○○○○○ and ○○○○○○○○ and ○○○○○○ and ○○○○○ and ○○○○ and ○○○ and ○○ and ○○○ and

It is as shown in the attached Form.

C. Determination

“1) Generally, stocks, etc. are merely representing the value of assets and profit values of a stock company, etc. divided into shares. However, stocks, etc. owned by the largest shareholder, etc. have special value that can exercise management rights or control rights through shareholder’s voting rights in addition to their value, and so-called management right framework. It is the legislative intent of Article 63(3) of the former Inheritance Tax and Gift Tax Act (see Constitutional Court Order 2002Hun-Ba65, Jan. 30, 2003) to ensure that a fair evaluation method is established to prevent the transfer of management rights of the company without legitimate taxation to a lower amount of tax without any tax imposition (see Supreme Court Order 2002Hun-Ba65, Jan. 30, 2003). In addition, since the practices in which the governance and management of the company are separated have not yet been established, shareholders, their relatives, related parties, etc., including affiliated companies controlled by the largest shareholder, etc., own control rights through inheritance and inheritance of the company.

A corporation, by holding stocks issued by another corporation, has parent companies, subsidiary companies, and grandchildren;

Article 63(3) of the former Inheritance Tax and Gift Tax Act provides that ○○○○○○○ Company and 200 shares of the former 3rd shareholder of the former 2nd shareholder of the 3rd shareholder of the 3rd shareholder of the 1st shareholder corporation shall be valued by holding shares of the 3rd shareholder of the 1st shareholder corporation, and that 3th shareholder of the 2nd shareholder of the 6th shareholder corporation shall be valued by holding shares of the 3th shareholder of the 1st shareholder corporation, and that 3th shareholder of the 1st shareholder of the 6th shareholder corporation shall be valued by holding shares of the 3th shareholder of the 6th shareholder corporation, and that the 1st shareholder of the 6th shareholder corporation shall be valued by holding shares of the 3 second shareholder of the 6th shareholder corporation, and that the 1st shareholder of the 6th shareholder corporation shall not be valued by the 1st shareholder corporation of the 1st shareholder corporation (the 2nd shareholder of the 2nd shareholder corporation).

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit. It is so decided as per Disposition.