Samsung’s Lee household to pay $10.78 billion in inheritance taxes

https://timesofindia.indiatimes.com/

SEOUL: The household of deceased Samsung Electronics chairman Lee Kun-hee mentioned on Wednesday it should pay greater than 12 trillion gained ($10.78 billion) in inheritance taxes for the property of the late patriarch.
Lee, who’s credited with reworking Samsung into the world’s largest smartphone and reminiscence chip maker, died on October 25. His property included shareholdings in Samsung associates valued at $17 billion.
The Lee household’s dealing with of the hefty inheritance tax invoice – one of many largest ever in each Korea and globally – had been carefully watched because it may have resulted within the dilution of the household’s controlling stake in Samsung.
The household had been discussing utilizing shares in affiliated corporations as collateral for private loans to pay a part of the tax invoice, a measure that may keep away from the sale of their in depth Samsung holdings, Reuters reported final week, citing sources.
The household’s assertion on Wednesday didn’t give particulars of how Lee’s shares will probably be distributed among the many heirs or whether or not any will probably be bought. Moreover loans, the household is anticipated to make use of dividends from each their very own and Lee’s shareholdings to pay the tax, analysts have mentioned.
Lee’s shareholdings included a 4.18% stake in Samsung Electronics, 0.08% of Samsung Electronics most well-liked shares, 20.76% of Samsung Life Insurance coverage, 2.88% of Samsung C&T, and 0.01% stake in Samsung SDS, which based on South Korean tax code valuation had been price about 18.96 trillion gained ($17 billion).
South Korea’s tax code permits fee in instalments, with one-sixth of the entire tax invoice to be paid first, then the remainder over 5 years at an annual rate of interest presently set at 1.2%.
The household additionally introduced it should donate 1 trillion gained to public well being care charities, together with for the creation of a specialised an infection illnesses laboratory. Lee’s in depth assortment of antiques and work will probably be donated to the Nationwide Museum of Korea and different cultural organizations.

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