The Korea Local Administration Review

The deemed acquisition tax means that if the oligopolistic stockholders havean a u thority to u se and d ispose t he p roperty of t he company, it i s equ al to forhim have a property directly so acquisition tax is imposed to him because ofhis taxable capacity, but there are some problems.He has got the majority of stocks of company and then he is an oligopolisticstockholder but it does not mean that he has a authority to manage theproperty of company. Although it is possible to impose the tax to him, thedouble taxation problems are happened by the deemed acquisition tax, becauseit is the same property and the ownership has not been changed.Lastly, In case of the simulation in the civil law and the denial of legalcorporate personality, although it is the tax avoidance, it is not imposed to theavailable contracts of a private law which is applicable to the principle ofsubstantial taxation in pre-precedent.Although it is an available contract in the private law, it is possible to imposethe deemed acquisition tax in some cases through this precedent. but themajority opinion of this precedent is to blame for being out of the principle ofsubstantial taxation.
□ Keywords: stocks, oligopolistic stockholders, deemed acquisition tax, principleof substantial taxation, double taxation