The method of calculating gift tax where gift tax is exempted only for part of donated farmland;

In cases where a gift tax is exempted only for the part of the farmland donated pursuant to Articles 57 (1) and 56 of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 4806 of Dec. 22, 1994), such exemption merely terminates the part of the gift tax from the whole taxable object, and thus, in calculating the amount of gift tax on the part of the farmland which is subject to gift tax, the total amount of gift tax on the first donated value shall be calculated, and in this context, the method of deducting the amount of gift tax on the part of the farmland which is exempted from gift tax is to be taken, and it shall be reasonable in light of the tax structure to which the progressive tax rate applies, and the amount of gift tax shall not be calculated by taking the value of the farmland which

Articles 56(1) and 57(1) (see current Article 58(1)) of the former Regulation of Tax Reduction and Exemption Act (Amended by Act No. 4806, Dec. 22, 1994)

[Judgment of the court below]

The director of the tax office

Seoul High Court Decision 97Gu36295 delivered on June 11, 1998

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

The grounds of appeal are examined.

On the first ground for appeal

In light of the records, the court below's determination of the size of the farmland of this case, which is subject to gift tax, is just and acceptable, and there is no violation of the rules of evidence as pointed out in the grounds of appeal.

On the second ground for appeal

In cases where a gift tax is exempted only for the part of the farmland donated pursuant to Articles 57 (1) and 56 of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 4806 of Dec. 22, 1994), such exemption merely terminates the part of the gift tax from the whole taxable object, and thus, in calculating the amount of gift tax on the part of the farmland which is subject to gift tax, the total amount of gift tax on the first donated value shall be calculated. Here, the method of deducting the amount of gift tax on the part of the farmland which is exempted from gift tax is to be taken, and it shall be reasonable in light of the tax structure to which the progressive tax rate applies, and the amount of gift tax shall not be calculated by applying only the value of the farmland which is subject to tax, excluding

The judgment of the court below to the same purport is correct and there is no violation of law as otherwise alleged in the grounds of appeal.

On the third ground for appeal

Under the tax law, in cases where a taxpayer violates various obligations, such as a return and tax payment, without justifiable grounds, as prescribed by individual tax law, in order to facilitate the exercise of the right to impose taxes and the realization of a tax claim, the taxpayer’s intention and negligence is not considered as administrative sanctions, whereas it is unreasonable for the taxpayer to be unaware of his/her duty, and there is a circumstance where it is unreasonable for the taxpayer to be able to present it properly or to expect the party to fulfill his/her duty, or where there is any justifiable reason that it is unreasonable for the taxpayer to be unaware of his/her duty, the additional tax may not be imposed (see, e.g., Supreme Court Decisions 93Nu15939, Nov. 23, 1993; 95Nu10181, Nov. 14, 1995; 96Nu15404, Aug. 22, 197).

The decision of the court below to the same purport is correct, and there is no violation of law as otherwise alleged in the grounds of appeal.

All of the grounds of appeal cannot be accepted.

Therefore, the appeal is dismissed, and all costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Seo Sung-sung (Presiding Justice)