Inheritance Tax Debate for the First Time in 70 Years... "Improving Fairness and Donation"

[Anchor]
The government has launched a public debate to change the inheritance tax system from the current estate tax system to the estate acquisition tax system.

The government's first public expert debate suggested that the estate acquisition tax system is fairer and helps boost the economy and donations.

Reporter Lee Seung-eun introduces it.

[Reporter]
In the estate tax system, inheritance tax is based on the entire inheritance.

Considering the progressive tax rate and the highest tax rate in the world, growing and handing over a company is tantamount to handing over a huge tax burden.

The government's first public debate on the conversion of the estate acquisition tax pointed out that the current method is preventing economic revitalization and job creation.

[Shim Choong-jin / Konkuk University Professor of Business Administration: In order to lower the inheritance tax burden, companies try not to hire and invest, they try to give up companies, and they try to immigrate abroad.]

Experts say that the estate acquisition tax system based on the property each inherits meets the principle of fair taxation.

Furthermore, it said that it can also solve the problem of the donation culture caused by the problem of summing up third-party gifted property.

Three Seven, the world's No. 1 nail clipper, died less than five years after its founder gave his stake to his family and executives, and the bereaved family eventually sold the company because they could not afford 14.8 billion won in inheritance tax for stocks received by executives and employees.

Another problem is that the purpose of human deductions for the socially disadvantaged, such as deductions for the disabled, is diluted.

[Kim Sung-hwan / Lawyer Gwangjang at Law Firm: In Korea, inheritance tax accounts for 2.4% of the total tax revenue of the country as of 2021. The OECD average is about 0.6%.

The government will prepare a reorganization plan to convert the estate acquisition tax by the first half of next year and submit it to the National Assembly.

[Jeong Jung-hoon/Tax Director, Ministry of Strategy and Finance: The OECD also evaluates that the tax burden is fairer and more effective than the estate tax by reducing the concentration of money, as the estate acquisition tax method adopted by many countries can directly reflect the characteristics of heirs who are liable to pay taxes.]

The current estate tax method has been in operation for 74 years.

The homework is how to overcome the controversy over tax cuts for the rich, along with specific measures such as how to identify individual inherited property.

I'm YTN's Lee Seung Eun.

Reporter Yoo Jun-seok