The propriety of the appraisal value at the time of donation by the Korea Appraisal Board prior to about 59 days of donation to be deemed the market value at the time of donation.

In the past, since the real estate price in Korea is a publicly notified fact that there was an increase in the market price of real estate in Korea, it is reasonable to view the market price at the time of donation as the market price at the time of donation, unless there are special circumstances to deem that the appraisal price offered by the Korea Appraisal Board before about fifty (50) days in close to the time of donation could not

Articles 34-5 and 9(1) of the former Inheritance Tax Act (amended by Act No. 3474, Dec. 31, 1981); Articles 42 and 5 of the former Enforcement Decree of the Appeals Act (amended by Presidential Decree No. 10,667, Dec. 31, 1981)

Supreme Court Decision 84Nu325 Decided December 24, 1985

Plaintiff 1 et al., Counsel for defendant-appellant

Head of North Korean Tax Office

Daegu High Court Decision 85Gu160 delivered on February 5, 1986

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

The grounds of appeal Nos. 1 and 2 are also examined.

According to Article 34-5, Article 9(1) of the Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981), the Enforcement Decree of the same Act (amended by Presidential Decree No. 10667 of Dec. 31, 1981), Articles 42 and 5 of the same Act, the value of donated property is based on the current status at the time of donation, and the value of donated property is based on its current status at the time of donation, and if it is difficult to calculate the market value at the time of donation, it shall be assessed according to the method prescribed in Article 5(2) through (5) of the Enforcement Decree of the same Act.

According to the records of this case, when the defendant assessed the value of the donated property of this case, it was 50 days before May 28, 1979 and 50 days before the date of donation, the Korea Appraisal Board assessed the value of the donated property of this case in consideration of the location conditions, land situation, utility, etc. as to the site and factory buildings of this case which are donated property, and thus, the defendant assessed the value of the donated property of this case. Thus, since the previous real estate price increase rate in Korea constitutes the publicly notified value, the above appraised value before about 50 days before the time of donation cannot be deemed to be the higher price than the market price at the time of donation at the time of donation, and there is no special reason to view it as the market price at the time of donation at the time of donation (see Supreme Court Decision 84Nu325, Dec. 24, 1985). Therefore, the court below did not err in the misapprehension of legal principles as to the taxation of the donated property under the Local Tax Act.

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 Yoon Il-young (Presiding Justice)