The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Article 31-3 of the former Inheritance Tax Act (wholly amended by Act No. 5193, Dec. 30, 1996; hereinafter “former Act”) provides that “When the total sum of the value of donations received from the same person within five years prior to the pertinent donation exceeds KRW 10,000,00,000, gift tax shall be imposed by adding up the value of the donation, on the condition that the gift tax shall be imposed by deducting the amount paid or payable from the calculated amount of gift tax.”

Meanwhile, Article 47(2) and the main text of Article 58(1) of the former Act, as stated in Article 31-3 of the former Act, provides, “where the aggregate of the donated property received from the same person within five years before the date of the relevant donation exceeds 10 million won, the value shall be added to the taxable value of donated property; however, the amount of the gift tax paid or to be paid for the added donated property shall be deducted from the taxable value of donated property; on the other hand, the proviso of Article 58(1) provides, “if the gift tax is not imposed on the donated property added to the taxable value of donated property due to the expiration of the period prescribed in Article 26-2(1)4 of the Framework Act on National Taxes, this shall not apply to cases where the gift tax is not imposed on the donated property added to the taxable value of donated property after the expiration of the period prescribed in Article 26-2(1)4 of the former Framework Act on National Taxes.”