Whether the pre-sale amount, one year and six months prior to the commencement date of inheritance, can be deemed as the market price of the inherited property.

The agreement on trade made one year and six months before the commencement date of the inheritance was made according to the general trade, and one million won per the average trading price stipulated in the agreement is a proper reflection of the objective exchange value at the time of the agreement. Thus, it can be seen as the market value at the time of the agreement.

Article 60 of the Inheritance Tax and Gift Tax Act: Principles of Appraisal

All of the plaintiffs' claims are dismissed.

The costs of lawsuit shall be borne by the plaintiffs.

1. Summary of disposition;

A. As the Plaintiff’s father’s death on December 25, 2003, the Plaintiff succeeded to the Plaintiff’s ownership of ○○○○○○○○, 322 square meters (1,005 square meters), 236-3 square meters (498 square meters), 1,646 square meters (49), 237-2 square meters (583 square meters), 1,927 square meters (58 square meters) (hereinafter “three parcels”) (hereinafter “the instant land”).

B. Upon filing a report on the inheritance tax base with respect to the Defendant, the Plaintiffs assessed the instant land as KRW 146,00 per square meter (4.80,000 per square meter), a publicly assessed individual land price, and reported and paid the inheritance tax.

C. As a result of the plaintiffs' inheritance tax investigation, the defendant denied the appraised value of the land of this case reported by the plaintiffs according to the original officially assessed individual land price based on the mediation decision, etc. established in the land ownership transfer registration case between the plaintiffs and ○○ Construction Co., Ltd. (hereinafter "○○ Construction") after the commencement of inheritance, and corrected the market value of the land of this case by re-evaluation at one million won per square day, thereby adding an inheritance tax of 469,965,757 won to the plaintiffs on July 11, 2005 (hereinafter the disposition of this case) (hereinafter "the disposition of this case"). With respect to the inheritance shares and tax amount to be paid by the plaintiff, the disposition of this case was issued with "the content as listed below" or "the tax amount to be paid by each heir and the list of persons jointly liable for tax payment" as stated in the following table.

[Ground of recognition] Facts without dispute, Eul 1, 2, the purport of the whole pleadings

2. Whether the disposition is lawful;

A. The plaintiffs' assertion

(1) The plaintiffs set up a written consent to trade of land with the purport that the plaintiffs would sell one million won per square day to ○○ Construction. After that, the plaintiffs sold the land of this case at ○○○ Construction on a usual basis through court adjustment, but the land price of this case was in excess of 1.6 million won, such as ○○ Construction's purchase of neighboring land including the land of this case and construction of apartment at the same time, and delayed purchase of land, the land price of this case did not constitute an appropriate value that reflects objective exchange values, and thus, it cannot be deemed as the market price. Nevertheless, it was unlawful for the defendant to evaluate the market price of the land of this case at one million won per square day on the ground of the above circumstances and to reach the disposition of this case.

(2) Since the Defendant’s duty payment notice pursuant to the instant disposition did not distinguish and specify the amount of tax to be borne by each of the co-inheritors, the instant disposition was unlawful on the grounds that its method of imposition and notification was defective.

(b) Related statutes;

○ Inheritance Tax and Gift Tax Act (amended by Act No. 7010, Dec. 30, 2003; hereinafter the same shall apply)

Article 60. Principles, etc. of Appraisal

(1) The value of property on which an inheritance tax or gift tax is levied under this Act shall be based on the market price as of the date of commencing an inheritance or of donation (hereinafter referred to as "base date

(2) The market price referred to in paragraph (1) shall be the value which is generally accepted in cases of free trade between many and unspecified persons, and shall include the expropriation and public sale price and appraisal price, and others which are recognized as the market price as prescribed by Presidential Decree

(3) In applying paragraph (1), where it is difficult to compute the market price, the price assessed by the methods prescribed in Articles 61 through 65 shall be based on the types, scale, transaction conditions, etc. of the relevant property.

Article 61 Appraisal of Real Estate

(1) Real estate shall be appraised by the following methods:

1. Land:

Individual land prices under the Public Notice of Values and Appraisal of Lands, etc. Act (hereinafter referred to as “individually published land prices”).

○ Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 18177, Dec. 30, 2003; hereinafter the same shall apply)

Article 49 (Evaluation Principles, etc.)

(1) For the purpose of Article 60 (2) of the Act, the term "those recognized as the market price as prescribed by Presidential Decree, such as the expropriation or public sale price, the appraised price, etc." means, in cases of sale, appraisal, expropriation or public auction (referring to an auction under the Civil Procedure Act; hereafter the same shall apply in this paragraph) or public auction during a period not exceeding six months (three months in cases of donated property) before or after the base date of appraisal, the amount verified

1. Amount of transaction, if any, involving the transaction of the relevant property;

2. In case where there exist the appraisal prices assessed by the reliable appraisal institutions prescribed by the Ordinance of the Ministry of Finance and Economy (hereinafter referred to as the “appraisal institutions”) with respect to the relevant properties (excluding the properties prescribed in Article 63 (1) 1 of the Act), the average value of such appraisal prices;

3. Where there exists a fact of expropriation, auction or public sale of the property concerned, the amount of compensation, the amount of auction or public sale;

(2) In applying the provisions of paragraph (1), whether a value under any subparagraph of paragraph (1) falls within six months before or after the standard date of appraisal (three months for donated property), shall be determined on the basis of the dates prescribed in the following subparagraphs, and where the value deemed the market price under the provisions of paragraph (1) is two or more, the value falling under the nearest day before or after the standard date of appraisal

1. The sales contract date for the case of paragraph (1) 1;

(c) Fact of recognition;

(1) Around May 2001, 00 ○○○○○○○, ○○○○, and 66,660 square meters, including the instant land, were to make it possible to develop a housing site district for the construction of multi-family housing through the change of the purpose of use, etc. by changing the national land utilization plan into an urban area. As such, ○○○ Construction, etc. was to establish a housing site development plan for the construction of multi-family housing at this place, from June 2002, on the ground of a real estate intermediary (○○ Licensed Real Estate Agent Office) on the ground of real estate (○○ Licensed Real Estate Agent Office).

(2) On June 22, 2002, the Plaintiff New ○○, on behalf of ○○, prepared a written consent to trade of the instant land on behalf of ○○○, with the content that he/she consented to trade of KRW 100,000 per square meter, and issued a written delegation to trade land with the content that he/she delegates all authority related to such trade, and on October 4, 2002, the Plaintiff New ○○ issued a written consent to trade of the instant land to the real estate broker. On behalf of ○○ on behalf of ○○ on behalf of ○○, the Plaintiff New ○○ issued a written consent to use the instant land to use the instant land as a site for a district unit

(3) On December 2, 2002 to January 2003, 2003, a sales contract was concluded between the land owners of the above group and the ○○○○○○ Construction, etc., which set the sales amount from KRW 1,089,856 per square day to KRW 1,70,737.

(4) On January 8, 2003, 200, ○○ Construction agreed to prepare a sales contract of the land of this case with ○○○○○○, but ○○○ did not comply with the preparation of the contract on the grounds that the purchase price was below, 2086,00,000 won (2,086,000 won) deposited KRW 208,60,000,000, and filed a lawsuit against ○○○ District Court against ○○○○○○ (2003,5239), but filed an appeal against ○○○ High Court (2004Na13061) on October 6, 2004, the agreement was concluded between the Plaintiffs, the heir of ○○○○○, and ○○○○ Construction, who was the heir of ○○○○, and the content of the contract was settled as to the land of this case.

(5) The individual official support of the instant land is KRW 93,600 per 200 square meter, KRW 109,000 in 202, KRW 146,000 in 203, KRW 203,000 in 204, and KRW 292,00 in 205.

(6) In rendering the instant disposition, the Defendant entered the total amount of tax payable in a tax payment notice and a specification of calculation of the tax base and amount of inheritance tax, and the tax base, tax rate, and amount of tax deducted, which are the basis for the calculation thereof. In addition, the Defendant sent to the Plaintiffs on April 6, 2005 the list of inheritance tax and amount of tax jointly and severally liable for tax payment, which entered the ratio of inheritance possession of each of the Plaintiffs, co-inheritors (the amount of inheritance tax to be paid by each inheritor) and the amount of inheritance tax to be paid by each inheritor calculated according to the ratio (the amount of inheritance tax) along with the above tax payment notice, etc., and delivered to the Plaintiffs from April 8,

[Evidence] Gap 3 to 13, Eul 2 to 14 (including each number), the purport of the whole pleading

D. Determination

(1) Whether the market price of the instant land is appropriate

The main sentence of Article 60 (1) of the Inheritance Tax and Gift Tax Act provides that the value of the property on which the inheritance tax or gift tax is levied under this Act shall be the market value as of the date commencing the inheritance or the date of donation, and Article 60 (2) of the same Act provides that the market value under paragraph (1) of the same Article shall be the value which is generally deemed to be established in the event of free transactions between many and unspecified persons, and shall include the value which is recognized as the market value under the conditions as prescribed by the Presidential Decree, such as the expropriation, public sale price, appraisal price, and appraisal price. Article 49 (1) of the Inheritance Tax and Gift Tax Act provides that the term “those recognized as the market value under the conditions as prescribed by the Presidential Decree, such as expropriation, public sale price, and appraisal price, etc.” under Article 60 (2) of the Act refers to the value confirmed by the provisions falling under any of the following subparagraphs in cases of sale, appraisal, expropriation, or public sale before and after six months from the base date of appraisal.

As seen earlier, with the construction of apartment units in the land of this case, the purchase and sale contract of this case was executed between December 2, 2002 and January 2003, which is about one year prior to the base date of appraisal of the land of this case, between KRW 1,089,856 to KRW 1,70,737 as to neighboring land. Although the sale and sale contract of this case was not concluded regularly within 6 months prior to the base date of appraisal, the sale and sale contract of this case was not concluded within 1,00,000 won prior to that date without specifying the purchaser (construction company), and it was agreed or agreed to sell the land of this case to supply it to the housing site of this case for apartment construction. Since the sale and sale contract of this case was concluded mainly between 0,000 won and the plaintiffs, who are its successors, at the time of the commencement date of the sale and sale of new land of this case, the sale and sale contract was concluded within 1,600,000 won prior to that date of appraisal date.

(2) Whether there is a defect in the method of imposition and notice

In rendering the instant disposition, the fact that the Defendant’s notice of imposition was given along with “the inheritance tax amount to be paid by inheritor” and “a list of persons jointly liable for tax payment” is recognized as above. Therefore, the Plaintiffs’ assertion on this part is without merit.

3. Conclusion

Thus, the disposition of this case is lawful, and the plaintiffs' claim is dismissed in entirety as it is without merit.