Whether this constitutes a deemed donation under Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981) where the title trust is not registered or registered.

The legal fiction of donation stipulated in Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981) is the purport that if a trust property is a trust property pursuant to Article 3 of the Trust Act, is not registered or registered, or is not indicated in the register of stockholders or the register of bonds with respect to the trust property, it shall be deemed that the trust property is donated to the trustee. Since a simple title trust cannot be deemed a trust under the Trust Act, it shall not be deemed that it was donated by Article 32-2 of the same Act.

Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981); Article 3 of the Trust Act

Supreme Court Decision 83Nu16 Decided November 8, 1983 83Nu192 Decided July 26, 1983

[Judgment of the court below]

The Head of the Maternization Tax Office

Seoul High Court Decision 84Gu625 delivered on August 20, 1985

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

The legal fiction of donation provided for in Article 32-2 of the former Inheritance Tax Act (amended by Act No. 3474 of Dec. 31, 1981) which was in force at the time of the instant case is that the trust property shall be deemed to have been donated to the trustee, in case where the trust property is not registered or recorded in the securities, or is not entered in the register of shareholders or the bond register as to the trust property under Article 3 of the Trust Act. Since a simple title trust cannot be deemed to be a trust under the Trust Act, it shall not be deemed to have been donated under Article 32-2 of the said Inheritance Tax Act (see each of the Supreme Court Decisions 83Nu192, Jul. 26, 1983; 83Nu16, Mar. 11, 1983).

According to the reasoning of the judgment below, the court below held that the above taxation was unlawful on December 28, 1981 because the non-party borrowed the plaintiff's name with the consent of the plaintiff on December 28, 1981 and the plaintiff did not enter it in the register of company shareholders as trust property even if the plaintiff acquired shares 1,000 shares in the company register of the non-party corporation, which was registered in the register of company shareholders. This constitutes a constructive donation of the above inheritance tax law, and since the defendant did not have any evidence that the acquisition of shares in the plaintiff's name did not constitute a trust under the Trust Act, it cannot be deemed that the plaintiff issued the tax disposition in this case to the plaintiff, but there was no other evidence that the plaintiff received the above shares from the above non-party. The court below's decision was just in light of the records, and there were no errors in the misapprehension of legal principles, such as the theory of lawsuit, nor in the incomplete deliberation, or in the violation of rules of evidence.

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 Osung-hwan (Presiding Justice)