The National Tax Service “buying and selling stocks with each other”… Law “It’s hard to see it as a sale between specific people”
The LG Group’s family won the first trial in an administrative lawsuit filed against the tax authorities’ decision to impose a tax of 18 billion won.
According to the court on the 17th, the Seoul Administrative Court’s Administrative Division 6 (Judge Lee Ju-young) filed a lawsuit against the tax authority by 10 people including Heesung Group Chairman Koo Bon-neung, LB Hunet CEO Koo Bon-wan, and LB Investment CEO Koo Bon-cheon “cancel the transfer tax imposition.” was recently ruled in favor of the plaintiff.
After a tax investigation between 2017 and 2018, the Seoul Regional Tax Office determined that there was a situation where one of the family members placed a sell order under the leadership of the LG Group’s financial management team, and the other person traded stocks in such a way that the other person directly bought it.
In May 2018, the National Tax Service notified that there were 2.87 million shares of stock exchanged in this way, and that Chairman Koo and others reported less capital gains of 45.3 billion won in total.
Authorities evaluated the actual stock price as the amount of a 20% premium to the average closing price for two months before and after the trading date, and determined that the difference between the amount of stocks the LG family traded with each other was an underreported amount.
Dissatisfied with the taxation, Koo and others filed an administrative lawsuit in September 2020 when they filed an administrative lawsuit in September 2020, claiming that “the stock was transferred only through competitive trading on the Korea Exchange, and it was not a special transaction.”
The court said, “In principle, competitive trading in the exchange market cannot be regarded as a transaction between specific individuals, and there is no evidence to admit that the transaction in this case has lost the essence of competitive trading or that it is difficult to see it as competitive trading,” the court said. listened to
In addition, “the average order price of the transaction in this case was always formed between the high and low price of the stock price at the time, and there is no circumstance that can be seen as a distortion of the stock price due to the transaction,” he said. did.
“Even if the plaintiffs have agreed on a transaction in advance as the defendants claim, it cannot be considered that a transaction made through competition in the marketplace is a transaction between specific individuals, considering various circumstances.”
He added, “The transaction in this case is a mixture of transactions with related parties and transactions with third parties in one order, and this was not the intention of the plaintiffs, but an accidental result by the exchange system.”
/yunhap news
