All appeals are dismissed.

The costs of appeal are assessed against the plaintiffs.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. As to the grounds of appeal Nos. 1, 2, and 3, Article 94(1)3(a) of the former Income Tax Act (amended by Act No. 10408, Dec. 27, 2010; Act No. 10408, Jan. 1, 201) (hereinafter “instant legal provision”) provides that “The income derived from “those stocks, etc. of a stock-listed corporation under the Financial Investment Services and Capital Markets Act, which are transferred by a major shareholder prescribed by Presidential Decree in consideration of the total market value of stocks owned by the stock-listed corporation, etc. in total” shall be subject to taxation of capital gains tax; and the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 22580, Dec. 30, 2011; thereafter, from January 1, 2011; hereinafter “the Enforcement Decree”) stipulates that “any other shareholder or his/her relative under Article 94(1)3(a) of the Framework Act on National Taxes that belongs to the market value of the immediately preceding business year.”

The legislative purpose of the legal provision of this case is to promote the equity of taxation in cases where other assets, such as real estate, are transferred, and to prevent the modified donation using listed stocks, etc.

As such, imposing tax on the transfer margin of listed stocks is consistent with the principle of tax equality.

In addition, not only one shareholder who transfers stocks, etc., but also one shareholder who has transferred them in order to prevent modified donations using listed stocks, etc.