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Roh Pushes Ahead with His New Tax Plan on Inheritance and Donation

Roh Pushes Ahead with His New Tax Plan on Inheritance and Donation

Posted January. 02, 2003 22:16,   


The presidential transition committee has decided to pave the way for the introduction of the so-called "all-inclusive" taxation system and securities-related class action suit system within the first half of 2003.

A senior official with the transition team told reporters on Jan. 2 that the team would prepare a revision bill to tax code to prevent business leaders from evading taxes through inheritances and donations.

"Though a group of people point out the possibility of the new tax system being unconstitutional," the official explained, "our team decided that it is not unconstitutional after a review. President-elect Roh has a strong will about introduction of the new tax system even by preparing a basis in the constitution."

He cited Samsung group Lee Jae-yong`s case as such a case, in which he was involved in irregular inheritance through bonds with subscription warrant, damaging shareholders` interest and at present a civic group has filed a lawsuit on behalf of the shareholders.

When it comes to the securities-related class lawsuit system, the introduction of which businesses are opposed to, he added, "Though businesses argue that it isn`t necessary because of the transparency of management, it should be in place in order to make conglomerates` management clear."

Kim Kak-joong, chairman of the Korean Federation of Industries, asked for putting off the class action lawsuit system at a gathering between heads of the nation`s five large economic organizations and President-elect Roh Moo-hyun, on Dec. 31 last year. However, Roh rejected his request saying that it should be introduced because it was his campaign pledge.

However, the passage of the revision bill through the National Assembly is uncertain because the opposition Grand National Party (GNP) is against the introduction of the class action suit system.

Young-Hae Choi yhchoi65@donga.com