In case where part of the revenue and gift tax exempted is transferred over several occasions, the method of calculating the amount of gift tax to be collected additionally.

For the purpose of Article 67-6 (3) of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 4165 of Dec. 30, 1989), the term "amount equivalent to the exempted amount of gift tax on the farmland" means the amount equivalent to the assessed amount of gift tax on the farmland transferred to a self-employed farmer, such as lineal ascendant and descendant, within five years thereafter, based on the time the donation was made to him/her. In such cases, where part of the donated farmland was transferred over several occasions, the remaining amount of gift tax shall be additionally collected from the amount of gift tax to be collected until the immediately preceding transfer.

Articles 67-6(3) and 67-7(3) (see Articles 56(3) and 57(3) of the former Regulation of Tax Reduction and Exemption Act (Amended by Act No. 4165, Dec. 30, 1989)

[Plaintiff-Appellant] Plaintiff 1 and 15 others (Law Firm Gyeong, Attorneys Lee Jae-soo et al., Counsel for plaintiff-appellant)

Plaintiff

Head of Central Tax Office

Seoul High Court Decision 95Gu11049 delivered on October 11, 1995

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

The grounds of appeal by the defendant litigant are examined.

Article 67-6 (3) of the former Regulation of Tax Reduction and Exemption Act (amended by Act No. 4165 of Dec. 30, 1989), which applies mutatis mutandis pursuant to Article 67-7 (3) of the same Act, provides that where a self-employed farmer who received a donation of farmland exempted from the gift tax transfers the farmland within five years from the date he received the donation of the farmland or does not engage in farming directly in the farmland, the amount equivalent to the exempted amount of the gift tax on the farmland shall be additionally collected from the self-employed farmer. The term "amount equivalent to the exempted amount of the gift tax on the farmland" in this provision refers to the amount equivalent to the exempted amount of the gift tax on the farmland transferred within five years from the time the farmland was donated to the self-employed farmer, such as lineal ascendant or descendant, and in this case, where part of the donated farmland was transferred over several occasions, the remaining amount of the gift tax imposed after deducting the collected amount of the gift tax from the gift tax to the time of the immediately preceding collection shall not be accepted.

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 Cho Chang-tae (Presiding Justice)