Nabuja’s land was expropriated by the state and he was compensated in cash of 8 billion won. Mr. Nabuza decided to pass this cash on to his children in advance.
Mr. Nabuja’s long-standing chronic illness was getting worse. Here, Mr. Nabuja also had a son born to his wife. Knowing that if the property is divided by inheritance, she will not return a single penny to the son born of her mistress, she decided to take care of it while she is alive.
Mr. Nabuja secretly gave 3 billion won in cash to her son from her mistress and her only son. She gave 4 billion won in cash to her wife and her only child. The remaining 1 billion won was reserved for her use during her lifetime.
However, Mr. Nabuja died within a year after the gift, leaving a fortune of 1 billion won. When the bereaved family reported inheritance tax, an inheritance deduction of 1 billion won was applied to the inherited property of 1 billion won. I didn’t pay a penny of inheritance tax.
The bereaved families, who believed that everything was over, were contacted by the local tax office to explain where 7 billion won out of 8 billion won in land expropriation was used after one year after filing the inheritance tax report. Could Nabuja’s family have passed without paying additional inheritance tax?
When parents suddenly become critically ill, the family thinks of a way to reduce the burden of inheritance tax. The most common question is whether inheritance tax will be reduced if you urgently dispose of your property or withdraw money from your bank account.
In order to prevent inheritance tax evasion by intentionally reducing inherited property, the current Inheritance Tax and Gift Tax Act requires that a certain amount of money be spent over a certain period of time prior to the death of an heir. If it is not properly explained, the amount is added to the inherited property and inheritance tax is imposed.
There is a certain period of time and a certain amount of money that must be vindicated. Specifically, if the ancestor’s property disposed of over the past one year from the date of death is 200 million won or more by type, or if the ancestor’s property disposed of by type over the past two years from the date of death is over 500 million won by type, the use must be explained.
If so, how much tax will Nabuja’s family온라인카지노 have to pay if he fails to explain the 7 billion won in cash he passed on to his sons?
First of all, Mr. Nabuja’s family consists of his wife and only child. By adding the presumed inheritance amount of 7 billion won to the existing inheritance amount of 1 billion won, the total amount of inherited property becomes the original amount of 8 billion won. Assuming that there are no other deduction factors, the inheritance tax that Nabuja’s family will have to pay is 2.94 billion won.
Moreover, since inheritance tax is paid after the deadline for reporting, penalty tax for failure to report and late payment must also be paid. In a situation where 3 billion won was taken away by the son of my lover, I would have to pay more than 3 billion won in inheritance tax.
What would happen if the local tax office discovered through an investigation that Mr. Nabuja gave 7 billion won in cash to his children in advance, but the children did not report and pay the gift tax.
First of all, children who receive cash as a gift do not report gift tax, so they must pay not only gift tax, but also penalty tax for mandatory reporting (20% for general non-reporting, 40% for non-reporting) and additional tax for delayed payment (9.125% per annum). And when you file an inheritance tax return, the pre-gifted property must be added to the inherited property to calculate the inheritance tax, and then the gift tax that your children must pay must be deducted from the inheritance tax.
If a person receiving a gift has not filed a gift tax report, the tax authority may impose gift tax until 15 years have elapsed from the statutory deadline for gift tax reporting. If an unreported gift is discovered after 10 years, the additional tax for non-reporting and delay in payment will be greater than the principal tax rather than the gift tax itself. This is because the penalty for late payment, which is the nature of interest for non-payment, is about 10% per year, so it becomes approximately 100% after 10 years.In fact, Mr. Nabuja’s case is a common case that can be seen often around. Therefore, making an inheritance plan as the inheritance commencement date is imminent will inevitably cause more harm than good. Whether you have a lot of inherited property or not, making an inheritance plan in advance is a shortcut to reducing the burden of inheritance tax on the remaining family members.