As Samsung recorded its strongest first fake watches for sale quarter since 2018, the family of its chairman, Lee Kun-hee, is faced with an inheritance tax bill of $10.78 billion. Investors have been paying close attention to the tax situation as it could have ramifications for the Lee family’s stake in the business.
The total bill is reckoned to be around half rolex replica watches the value of Lee Kun-hee’s total estate.
Lee Kun-hee, who died last October, is panerai replica watches credited with much of Samsung’s rise to becoming the global electronics giant it is today. The markets are still unsure about how things are going to play out, and how many, if any, of the company’s shares the family will need to sell.
Dealings in shares of Samsung’s listed divisions were mixed, with no clear picture emerging of whether or not the family was selling shares.
Instead, investors must wait for regulatory filings to see if there are any changes in the shareholdings held by Lee’s son, Jay Y. Lee. In reality, Jay Y. Lee has been the head of Samsung Electronics since 2014, despite currently serving a two and a half year prison sentence for his role in a bribery scandal involving South Korea’s former President Park Geun-hye.
Samsung released a statement saying that the tax bill is one of the largest ever, not just in South Korea, but globally. In the statement, the company added that – “Mr. Lee’s family expects to pay more than 12trn won in taxes related to inheritance, which is more than half of the value of the late chairman’s total estate.”
South Korea’s inheritance tax is the world’s second-highest at 50%, with only Japan topping it. It also has the potential to be higher still as a premium can be added to shares if the deceased owns a controlling interest in the business.
According to figures from the Organization for Economic Cooperation and Development, the average inheritance tax amongst member states is 15%, with both the U.S. and U.K. well above this figure at 40%.
Mr. Lee also owned a large collection of paintings and antiques. These are to be donated to cultural organizations, including the National Museum of South Korea. Amongst his collections are works by Picasso, Monet, Dali, and Chagall.
Strong Profit Figures
At the same time, Samsung has announced details of its strongest quarter since 2018. Net profits rose by 46.3% over the same quarter last year, with a net profit of $6.4 billion.
The release of its new mobile flagship, the Galaxy S21, played a large part in boosting these figures. This was backed up by growth in domestic appliance and television sales, largely put down to people being forced to spend more time at home.
By comparison, the figures for its semiconductor arm were disappointing, the company said in its earnings report – “Solid sales of smartphones and consumer electronics outweighed lower earnings from semiconductors and displays.”
The company has also stated that manufacturing issues including storm damage stoppages at its Texas factory had been resolved and it expected stronger figures for its semiconductor arm in the second quarter.