Transfer of title trust property and imposition of capital gains tax on title trustee;

If the Plaintiff, the nominal owner of the instant real estate, obtained title trust from Nonparty (A) or completed the registration of ownership transfer to Nonparty (B), and did not receive any consideration or profit therefrom, the actual owner of the instant real estate and the transferor are Nonparty (A) and the Plaintiff merely is a title trustee, and the taxation imposing capital gains tax on the Plaintiff is unlawful in violation of the substance over form principle.

Article 7 of the Income Tax Act, Article 14 of the Framework Act on National Taxes, Article 1 of the Trust Act

Plaintiff (Attorney Kim Tae-tae, Counsel for plaintiff-appellant)

Gangwon-gu Director of the District Office

Seoul High Court Decision 83Gu107 delivered on July 25, 1983

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

Each ground of appeal by the defendant litigation performer shall be examined together.

According to the reasoning of the judgment below, the court below determined that the real estate in its judgment based on macroficial evidence is acquired by three persons including the plaintiff, etc. from the Dok Construction Co., Ltd. and transferred it to the Dok Construction Co., Ltd., but in fact, the non-party lent KRW 300 million to the Dok Construction Co., Ltd. and entrusted the ownership transfer registration to the non-party Dok Construction Co., Ltd. in the name of three persons including the plaintiff et al., and disposed of KRW 353,040,00, and the non-party 3 did not receive any price or profit by receiving the title trust from the above non-party or completing the ownership transfer registration from the non-party Dok Construction Co., Ltd., the actual owner and the transferor of the real estate in its judgment, and the plaintiff merely acquired 1/3 of the share of the real estate in its judgment, and the defendant's taxation that imposed capital gains tax, etc. on the plaintiff is unlawful since the plaintiff merely acquired the title trustee.

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)