(1) If it is deemed that any act or calculation of a resident with capital gains reduces the burden of taxation on such income wrongfully due to transactions with a person related to the resident, the head of a tax office or the commissioner of a regional tax office having jurisdiction over the place for tax payment may calculate the amount of income in the relevant taxable period, irrespective of such act or calculation of the resident. <Amended by Act No. 11146, Jan. 1, 2012>
(2) Where a resident donated assets to a related person prescribed in paragraph (1) (excluding cases of a spouse, lineal ascendants, or descendants governed by Article 97-2 (1)) and then a person to whom such assets have been donated transfers such assets on to another person within 10 years from the date of such donation, and the amount of tax under subparagraph 1 is less than the amount of tax under subparagraph 2, the donor shall be deemed to have transferred such assets directly: Provided, That this shall not apply where the capital gains substantially belong to the relevant donee: <Amended by Act No. 11146, Jan. 1, 2012; Act No. 12169, Jan. 1, 2014; Dec. 31, 2022>
1. The aggregate of the gift tax of a donee (referring to the tax amount calculated by subtracting the amount of tax credited, reduced, or exempted from the calculated tax amount under the Inheritance Tax and Gift Tax Act) and the capital gains tax (referring to the final tax calculated by subtracting the amount of tax credited, reduced, or exempted from the calculated tax under this Act; hereafter the same shall apply in subparagraph 2);
2. The capital gains tax calculated considering cases where a donor transfers the assets directly.
(3) Where capital gains tax is levied on a donor pursuant to paragraph (2), notwithstanding the provisions of the Inheritance Tax and Gift Tax Act, no gift tax shall be levied on the originally-donated assets.
(4) Article 97-2 (3) shall apply mutatis mutandis to the calculation of the number of years under paragraph (2). <Amended by Act No. 12169, Jan. 1, 2014>
(5) The scope of related persons under paragraph (1), and other matters necessary for calculation by wrongful acts shall be prescribed by Presidential Decree. <Amended by Act No. 11146, Jan. 1, 2012>[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]