The acquisition value of inherited real estate

As the case cannot be recognized or confirmed within six months before and after the date of inheritance, the acquisition value shall be calculated based on the standard market price at the time of inheritance under Article 61 of the former Inheritance Tax and Gift Tax Act, and the disposition of this case based thereon is lawful.

Article 61 of the Inheritance and Gift Tax Act

Daejeon District Court-2017-Gu Group-72 (Law No. 26, 2017)

AA

BB Director of the Tax Office

2017.08.29

2017.09.29

1. The plaintiff's claim is dismissed.

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

Cheong-gu Office

Of the transfer income tax of 34,212,610 won for the year 2013 that the Defendant imposed on the Plaintiff on February 5, 2016

The imposition of KRW 27,053,139 exceeding KRW 7,159,471 shall be revoked.

1. Details of the disposition;

A. The Plaintiff acquired a building on June 13, 2012 and transferred KRW 560,00,00 to KimCC and GangwonD on August 30, 2013 (a sales contract concluded on July 23, 2013) and paid KRW 3,174,440 on October 31, 2013 after filing a preliminary return with the Defendant on October 31, 2013.

B. In calculating the standard market price of the instant real estate, when the Plaintiff reported the acquisition value as the initial standard market price, the portion of “house” was normally calculated, but “other buildings” was calculated by including the area of the instant real estate. Accordingly, the Defendant denied KRW 102,716,700, which was excessively appropriated on February 5, 2016, and additionally determined and notified KRW 34,212,610, which was reverted to the Plaintiff in the year 2013 (hereinafter “instant disposition”).

C. The Plaintiff, who was dissatisfied with the instant disposition, filed an appeal with the Tax Tribunal through the procedure of filing an objection, but was dismissed on October 24, 2016.

[Ground of recognition] Facts without dispute, Gap evidence Nos. 1, Eul evidence No. 1 to 6, the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

In assessing the value of the property acquired by inheritance as of the date of commencing the inheritance, the value of the property acquired by inheritance outside the evaluation period under the proviso of Article 49 of the Enforcement Decree of the Inheritance Tax and Gift Tax Act should be recognized as the market price. The value of the sale and purchase, etc., shall be recognized as the market price. From the acquisition date (on June 13, 2012) to the date of the sale contract (on July 23, 2013), one year and one month from the date of acquisition until the date of the sale contract (on July 23, 2013), and seven months from the boundary of the evaluation period (on July 23, 2013), the use and current status are identical during the period of possession, and there are no special circumstances in the price fluctuation, so the relevant sales value shall be recognized as the acquisition value (the plaintiff has calculated

B. Determination

1) Article 10 of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Act No. 1358, Dec. 15, 2015; hereinafter referred to as the "former Income Tax Act") provides that the transfer value shall be calculated based on the actual transaction value, and the acquisition value shall also be calculated based on the standard market price if the transfer value is calculated based on the standard market price. Article 97 of the former Inheritance Tax and Gift Tax Act provides that the acquisition value among necessary expenses to be deducted from the transfer value when calculating gains of residents under paragraph (1) of the same Article shall be calculated as the actual transaction value required for the acquisition of assets under subparagraphs of Article 94(1) and Article 94(5) of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 1358, Jun. 11, 2013; hereinafter referred to as the "former Enforcement Decree") shall be calculated based on the market price under Article 163(1) through 5 of the Inheritance Tax and Gift Tax Act.

2) In light of the above provisions of the relevant laws and regulations, the acquisition value of the instant real estate shall be calculated based on the actual transaction value. As seen earlier, the Defendant acquired the instant real estate without a real transaction and cannot be recognized or confirmed the sales cases within six months before and after the date of inheritance. As such, the Defendant calculated the acquisition value based on the standard market price at the time of inheritance pursuant to Article 61 of the former Inheritance Tax and Gift Tax Act, and issued the instant disposition based thereon, such disposition by the Defendant is lawful in accordance with the relevant laws and regulations. Accordingly, the Plaintiff’s assertion is without merit.

3. Conclusion

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