early 201st century0221 ( October 15, 2011)

The amount of deduction of donated property for lineal ascendants and descendants shall be uniformly deducted from 30 million won regardless of the number or frequency of donors.

For a donee who received a donation from a lineal ascendant or descendant, the amount of KRW 30 million shall be uniformly deducted regardless of the number or frequency of donors with respect to the property donated for ten years, and the same shall apply to cases where the donor died as long as the property donated for ten years was donated to the donor.

2011Guhap12528 Revocation of Disposition of Imposition of Gift Tax

LAA

○ Head of tax office

July 8, 201

August 10, 201

1. The plaintiff's claim is dismissed.

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

The Defendant’s disposition of imposition of gift tax amounting to KRW 3,110,700 against the Plaintiff on October 1, 2010 shall be revoked.

1. Details of the disposition;

A. On May 20, 2004, the Plaintiff reported and paid KRW 75,366,000 as gift tax calculated by adding KRW 30 million to the taxable value of donated property for lineal ascendants and descendants at KRW 498,70,000,000, when he/she received a gift of KRW 199.48 square meters from Won, his/her father, ○○○○-dong, 00,000.

B. On September 10, 2006, the Plaintiff reported and paid KRW 1,895,908,910 of the inheritance tax on KRW 8,273,036,622 of the taxable value of the inheritance, including the above land that was donated in advance on March 9, 2007.

C. On February 11, 2010, the Plaintiff: (a) donated two parcels, other than 00 m2,000 m2, 124.5 m3,000 m3,000,000 m2,000,000,000 won for the gift tax; and (b) reported and paid KRW 4,454,790,000,000,000 for the gift tax base calculated on October 1, 201, the Defendant determined and notified the Plaintiff of KRW 3,410,690,00 for the gift tax base calculated by denying the deduction amount of donated property for lineal ascendants and descendants (hereinafter referred to as “instant disposition”).

D. On December 24, 2010, the Plaintiff filed an appeal against the instant disposition with the Tax Tribunal. On March 15, 2011, the instant disposition was issued a decision that “The amount of the tax calculated by deducting the amount equivalent to the additional tax on negligent tax returns from the final tax amount, and the remainder of the appeal is dismissed.”

E. On March 24, 2011, according to the above decision of the Tax Tribunal, the Defendant reduced and corrected KRW 299,990 for additional tax returns.

【Ground for Recognition: there is no dispute, Gap evidence 1 to 3, Eul evidence 1 to 3, and the purport of the whole pleadings】

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

The lineal ascendant under Article 53 subparagraph 2 of the Inheritance Tax and Gift Tax Act (hereinafter referred to as the "Inheritance Tax and Gift Tax Act") refers to a lineal ascendant who is alive at the time of donation, and the defendant's disposition of this case, which is otherwise reported by the defendant, is unlawful, even though it conforms to the taxation principle that allows the deduction of donated property if the lineal ascendant receives a donation again from the lineal ascendant, is in accordance with the above, since it is imposed the inheritance tax by including 498,70,000 won in the taxable value of donated property, including 30,000,000,000 won, which is the donated property

(b) Related statutes;

It is as shown in the attached Table related statutes.

C. Determination

In light of the following, Article 53 of the Inheritance Tax and Gift Tax Act provides that a donee, who received a donation for ten years from a lineal ascendant or descendant, shall uniformly deduct 30 million won, regardless of the number or frequency of the donor, regardless of the number of lineal ascendants or descendants. If the credit limit differs depending on the number of lineal ascendants or descendants, it is possible to avoid the gift tax bypassing other lineal ascendants or descendants, and as a result, as the donor receives a donation from a large number of lineal ascendants or descendants, the amount of the gift tax may vary depending on the amount of tax to be borne by the same taxpayer as the value of the donated property may vary, and thus, there is a reasonable reason to determine such legislators. The same applies to the case where the donor died as long as the property was donated for ten years, the Plaintiff’s above assertion is without merit.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit. It is so decided as per Disposition.