TITLE	Supreme Court Decision 2012Du27787 Decided March 29, 2018 ¡¼Revocation of Disposition Imposing Gift Tax¡½ [full Text]
Summary
[1] Standard of determining whether shareholders of a wholly owned subsidiary gained profits by an all-inclusive share swap pursuant to Article 360-2 of the Commercial Act Whether gift taxes ought to be levied on the profits acquired by shareholders of a company becoming a wholly owned subsidiary through an all-inclusive share swap under the Commercial Act by applying Article 42(1)3 of the former Inheritance Tax and Gift Tax Act concerning donation of profits resulting from the trade to increase corporate capital (affirmative) [2] In cases where: (a) shares registered in the name of a person other than the actual owner (hereinafter ¡°nominee shareholder¡±), which had been, for the first time, deemed to have been donated, and therefore, had either been previously taxed or remained taxable, were sold; (b) the proceeds therefrom were used to purchase other shares whose ownership were subsequently transferred to the same nominee shareholder, whether gift taxes can be imposed on such shares by applying Article 45-2(1) of the former Inheritance Tax and Gift Tax Act (negative in principle) In cases of an all-inclusive share swap under the Commercial Act, whether the foregoing legal principle is also applicable, in principle, to the new shares allotted to a nominee shareholder by a company becoming a wholly owning parent company (affirmative)

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