Big tax impact: Samsung’s Lee family pays $ 10.8 billion inheritance | Business and Economic News

The tax bill is one of the largest in the world following the death of Lee Kun-hee, chairman of Samsung Electronics.

The family of the late Samsung Electronics chairman Lee Kun-hee claims to have paid more than $ 12 trillion in South Korean winning (78 10.78 billion) inheritance taxes to the late Patriot’s garden.

Lee, who turned Samsung into the world’s largest smartphone and memory chip maker, passed away on October 25. According to local media, his estate, valued at about $ 26 trillion (.4 23.4 billion), includes $ 17 billion worth of shares in Samsung subsidiaries.

The Lee family’s handling of the largest inheritance tax bill in South Korea and globally – this has been meticulously observed due to the dilution of the family’s controlling stake in Samsung.

The family’s report on Wednesday did not provide details on how Lee’s shares will be distributed among heirs or whether any will be sold.

The family has been discussing the use of shares in affiliated companies as a network for personal loans to pay off a portion of the tax bill, which is a move to avoid selling their comprehensive Samsung shares, Reuters news agency reported last week.

The family is expected to use dividends from their own and Lee’s shareholders to pay taxes, analysts said.

Lee Kun-hee is proud to have made Samsung the world’s largest smartphone and memory chip maker [File: Michael Short/Bloomberg]

Lee holds 4.18 per cent stake in Samsung Electronics, 0.08 per cent in Samsung Electronics Options, 20.76 per cent in Samsung Life Insurance, 2.88 per cent in construction company Samsung C&T and 0.01 per cent in Samsung SDS. Tax code estimates are worth $ 18.96 trillion (b 17 billion).

Shares of Samsung C&T fell 5.5 percent and shares of Samsung Life Insurance fell 1.3 percent.

Any changes in the shares of Lee’s son and Samsung Electronics vice president Jay Y Lee or other family members are expected to be reported in the quarterly regulatory filings.

No apologies

As allowed by South Korea’s tax code, the family pays in installments, one-sixth of the total tax bill must be paid first, and the rest over five years at the current interest rate currently set at 1.2 percent, officials said.

The family announced a $ 1 trillion ($ 900 million) donation to public health charities, including the creation of a specialized infectious diseases laboratory. A detailed collection of Lee’s antiques and paintings will be donated to the National Museum of Korea and other cultural organizations.

Meanwhile, an official Blue House official said President Moon Jae-in’s office would not pardon Jay Lee following his sentencing in January for bribery and other crimes.

Business lobby groups, religious leaders and some lawmakers have called for the release of J Y Lee to help South Korea defend itself against the corona virus vaccine. He has served half of his 30-month prison sentence and appeared in court last week on separate fraud and stock-handing charges.

Sophia Harrison

Part time worker

I'm Sophia Harrison working as a part-time staff at the Costco since the past year until I become as an author at the iron blade, hope I can use my experiences with the supermarkets here.

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