October 05, 2018 13:57
Minors were given a total of some W1.8 trillion in gifts over the last three years to dodge inheritance tax, according to data from the National Tax Service revealed Thursday.
Some 638 cases were given to children less than a year old, totaling W69 billion (US$1=W1,130). That breaks down into W108 million per toddler.
Minors were beneficiaries of 16,162 inheritances totaling W1.84 trillion from 2014 to 2016. The NTS slapped them with W363.1 billion in gift taxes.
Under current laws, gifts of money or assets carry tax rates ranging from 10 to 50 percent, but minors who are direct descendants and are given less than W20 million are exempt from gift taxes.
Financial assets gifted totaled W664.1 billion or 36.1 percent, the biggest proportion, followed by real estate (W583.8 billion or 32 percent) and securities (W521.8 billion or 28 percent).
The amounts and numbers are on the rise. In 2014, 5,051 children were given assets, rising 15.6 percent to 5,837 the following year .The amount rose from W588.3 billion to W684.9 billion over the same period.
Inheritances are being passed on sooner and sooner. Over the last three years, the total amount passed on to teenagers totaled W854.8 billion, to children between the ages of seven and 12 W562.9 billion, and W420.2 billion to children under six. But while gifts to teenagers fell 4.2 percent, gifts to children under six jumped a whopping 57.9 percent.
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