Seoul High Court-2015-Nu-46170 ( December 04, 2015)

(C) Whether there was a purpose of tax avoidance or not shall be determined at the time of title trust.

(Summary) Although no distribution was made after a stock title trust, it is difficult to deem that there was no tax avoidance purpose by reducing global income tax burden on dividend income, reducing the liability limit for secondary tax liability, etc., in that the earned surplus of the company was accumulated as approximately KRW 1.8 billion at the time when the title trust was held.

Legal fiction of donation of title trust property under Article 45-2 of the Inheritance Tax and Gift Tax Act

2015du6006 Disposition of revocation of imposition of gift tax, etc.

O KimO

OO Head of the tax office

Seoul High Court Decision 2015Nu46170 Decided December 4, 2015

2016.03.24

The appeal is dismissed.

The costs of appeal are assessed against the Plaintiff.

Examining the lower judgment and the grounds of appeal, the grounds of appeal by appellant are not included in the grounds of appeal under each subparagraph of Article 4(1) of the Act on Special Cases concerning the Procedure for Appeal, or are deemed to fall under each subparagraph of paragraph (3). Therefore, the appeal is dismissed under Article 5 of the same Act. It is so decided as per Disposition by