Former President Lee Myung-bak. Hankook Ilbo data photo
A court decision was made to cancel the taxation of the comprehensive income tax of 100 million won on the rental income of former President Lee Myung-bak’s rented real estate. This is because the taxation authorities belatedly imposed taxation after the period for which the tax authorities could impose taxes.
On the 17th, the 5th administrative department of the Seoul Administrative Court (Director Park Yang-jun) ruled in a lawsuit against the head of the Gangnam Tax Office and the head of Gangnam-gu, in which the former President “requested to revoke the dispositions imposed such as general income tax”. The court judged that there was no problem with the service of the tax authorities, but there was a problem at the time of disposal and the taxation should be invalidated.
In 2018, the Seoul Regional Taxation Office reported that rental income generated from real estate under the name of the former president’s elder sister was missing from the taxable object as a result of conducting a tax audit from 2008 to 2011 by former President Lee, and summed up a total income tax of 125 million won. Imposed.
In November 2018, the authorities sent the tax imposition to the former president’s son, Si-hyung, and former Blue House security staff. Former President Lee was imprisoned in the Seoul Eastern Detention Center at the time. Former President Lee filed an administrative lawsuit, saying, “I did not know that the tax was imposed in the detention center.” It is an illegal disposition due to taxation after the exclusion period (the period during which tax can be imposed) has passed.
The judiciary did not accept the allegation that Mr. Si Hyung, “I did not know the tax imposition,” based on the fact that he signed the bill while receiving the bill. However, it was judged that the exclusion period for taxation was 5 years, and it was considered invalid to be taxed in 2018 on real estate rental income generated in 2008-2011.
The tax authorities in principle said that the period of imposition in the trial process is 5 years, but the former president had a title trust with his older sister, so the period should be increased to 10 years in the case of “in case of evading tax through fraud or fraudulent conduct”. Insisted. However, the court did not accept, saying, “There is no reason to believe that the former president’s name trust originated from the purpose of escaping property tax or income tax on rent.”
Choi Na-sil reporter [email protected]
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