A. The meaning of “transfer of assets” in capital gains tax

(b) Whether a transfer income tax is subject to taxation where a real estate share is transferred with consolation money and child rearing expenses (affirmative);

A. The essence of capital gains tax is to understand the gains from the transfer of assets as the taxable value after deducting necessary expenses, such as the acquisition value of the assets, from the total amount of income generated from the transfer of assets. Therefore, the transfer of assets refers to the transfer of assets for consideration accompanying the compensatory income, and the transfer of assets

B. If the Plaintiff agreed to transfer the Plaintiff’s real estate share to his wife in the form of consolation money and child-care expenses, and completed the registration of ownership transfer, it obtains the economic benefit, such as the extinction of the obligation to pay consolation money and child-care expenses in return for the transfer of real estate share, which constitutes a transfer of asset with compensation under the Income Tax Act, and thus is subject to taxation of capital gains tax.

Articles 4(1)3 and 4(3) of the Income Tax Act

[Judgment of the court below]

Head of the Do Tax Office

Seoul High Court Decision 83Gu459 delivered on January 26, 1984

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

1. We examine the ground of appeal No. 1 by the Plaintiff’s attorney.

The essence of capital gains tax is to understand the gains from the transfer of assets as taxable value after deducting necessary expenses such as the acquisition value of the assets from the total amount of income generated from the transfer of assets, so the transfer of assets refers to the transfer of assets at a cost accompanying the compensatory income, and the transfer of assets at a cost does not fall under the transfer of assets at a cost, and Article 4 (3) of the

In this case, the judgment of the court below is confirmed that the plaintiff agreed to transfer the real estate shares of this case to the non-party as consolation money and expenses for raising children while the plaintiff is married with the non-party who is his wife and completed the registration of transfer of ownership. According to the above confirmed facts, the plaintiff was the transfer of the above real estate shares in lieu of the payment of consolation money and expenses for raising children to the non-party, which is the economic interest of the non-party, such as the extinguishment of the obligation to pay consolation money and

Therefore, the court below's determination that the transfer of the above real estate shares constitutes the transfer of the assets with compensation under the Income Tax Act and is subject to the transfer income tax is justifiable, and there is no error of misunderstanding the legal principles such as the theory of lawsuit.

2. We examine the second ground for appeal.

In the court below's decision, 1/4 of the real estate shares in this case is consolation money and 3/4 of the remaining 3/4 are transferred to the child rearing expenses, so that the part transferred to the double child rearing expenses cannot be deemed a transfer. However, the court below's decision decided that the transfer of real estate shares in this case in substitution for the payment of consolation money and the child rearing expenses constitutes a transfer for value which is subject to the income tax in total, and therefore, the purport of rejecting the above assertion is clear that there is no ground for omission of judgment and incomplete deliberation, such as the theory of lawsuit.

3. Therefore, the appeal shall be dismissed, and all costs of appeal shall be assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Lee Lee Sung-soo (Presiding Justice)