Abstract

It may be easy to cover up the fact of gift in case that the donor and the donee have the same interests, and thus the gratuitous handover of wealth cannot be effectively blocked. To solve such a problem, the limitary－comprehensive system has taken effect from January 1, 1999. And from January of 2009, 6 cases of capital transactions, from which abnormal gift frequently occurs, are reckoned as a kind of gift and the distribution of profits on the inheritance tax law, and it was converted into the comprehensive system in order that the gift tax can be levied on the profits that were gratuitously distributed to the person with special relationship through the capital transaction similar to it. Such measures have widened the assessable scope of the gift tax, but it appeared that it might be difficult to perfectly prevent the gratuitous handover of wealth in view of the fact that abnormal inheritance and gift are conducted through capital transaction. Particularly from January 1, 2004, the gift taxation based on the complete－comprehensive system has been applied in that there is a strong possibility that transaction will take a new aspect as various financial products have come out and telecommunication industries have been developed. However, the problem is that although the complete－comprehensive system legislatively deserves enforcing, the complete－comprehensive system may cause remarkable damage to the purpose of legislation and also may be against the principle of tax equity in the event that the requisites to taxation are indefinite, and it may cause double taxation, and the enforcement decree may be unjust for the ones to pay the gift tax. Accordingly, the above－mentioned problems need to be improved and complemented under ‘no taxation without representation’ and the principle of tax equity, in order that the complete－comprehensive system may be a successful system to contribute to the realization of impartial taxation and the redistribution of wealth. Thus, it is expected that the complete－comprehensive system will be legislatively ameliorated to the end that it may meet ‘no taxation without representation’ and the principle of tax equity, and that gift will be researched more deeply.

Keywords

• Gift Tax
• Schedule System
• Comprehensive System
• No Taxation Without Representation
• Principle of Tax Equity

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