Pay the acquisition tax from 16 million won? Tried to donate 1.5 billion land but gave up

The bereaved family, who had lived in Haeundae-gu, Busan for a long time, wanted to donate land with high utilization value to Haeundae-gu as a shelter for residents, but gave up their intention to donate due to tax issues. There was no way to get a tax exemption of 16 million won, including acquisition tax on the land inherited by the bereaved family, even though the city donated land worth 1.5 billion won.

According to Haeundae-gu, Busan on the 25th, the bereaved family of Mr. Kim, who was a resident of Haeundae-gu, recently withdrew their intention to donate 13,000 square meters (about 3,900 pyeong) of forest in San 153 and San 205-1, Banyeo-dong, Haeundae-gu. It is about the size of two standard soccer fields (about 7000㎡).

The deceased, who had lived in Jaesong-dong, Haeundae-gu for a long time, passed away in July of last year at the age of 88, and announced his intention to return the land to society before his death. Accordingly, the bereaved family has been discussing the donation of land with Haeundae-gu since December of last year. The bereaved family of the late Samsung메이저놀이터 Chairman Lee Kun-hee donated the land at Mount 2 in U-dong to Haeundae-gu, and upon hearing the news that a shelter for residents would be created here, they said they readily expressed their intention to donate because they thought it could be a similar case.

This land is known to be worth about 500 million won and a market value of 1.5 billion won. In addition, because it is close to a residential area, the value of being able to be used as a rest area for residents in the city center was high. The Haeundae-gu Office also announced plans to use Banyeo-dong San 153 as a walking trail and Banyeo-dong San 205-1 as a rest area for residents.

However, the reason why the bereaved family eventually withdrew their intention to donate was because of the acquisition tax imposed on the bereaved family. If the donation was made before the deceased was alive, there would have been no tax problem, but as the land was inherited at the same time as the deceased’s death, the bereaved family had to register, pay the acquisition tax, and then donate. The taxes levied were about 16 million won, including acquisition tax (tax rate of 2.8%), special tax for rural development (0.2%), and local education tax (0.16%).

Haeundae-gu reviewed the Local Tax Act and the Local Tax Special Exception Restriction Act, followed by a review of inquiries from the Ministry of Public Administration and Security, and determined that acquisition tax exemption was impossible. Can’t the Haeundae-gu Office pay the acquisition tax instead? An official from Haeundae-gu said, “I have never seen such a case. First of all, there are many legal aspects to review, and the budget must be compiled,” he said.

It is known that the bereaved family paid taxes such as acquisition tax. An official from Haeundae-gu said, “It is very regrettable that the land is very well utilized.”

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