In this issue: PwC Reports, Official Pronouncements, Supreme Tax Court Cases, From Europe and From PwC Continue reading
Tax & Legal
The Constitutional Court has rejected for lack of prospects for success a case claiming that the future income tax due from the heir on interest earned but not yet due on the date of death of the testator be deducted from the inheritance tax base as a charge on the estate. Continue reading
The Constitutional Court has held the exemption of business assets from inheritance and gift tax to be unconstitutional as it is too broad-based. However, the present rules continue in force for a temporary period. Continue reading
The ECJ has held that the higher inheritance and gift tax allowances due to residents should also be granted on capital transfers between non-residents where at least one of the parties is resident in an EU member state. Continue reading
The ECJ has held that the principle of freedom of capital movement precludes the German system of granting higher personal allowances on capital transfers where at least one of the parties is resident. Continue reading
An ECJ advocate general has suggested the court extend its earlier rulings against lower personal allowances to heirs in other member states to residents in third countries. Continue reading
The Supreme Tax Court has held that an asset transfer on death is chargeable to inheritance tax under German law, even though its basis was a foreign legal act without an exact German parallel but leading to exemption in the foreign state of residence of both parties. Continue reading
An ECJ advocate general has suggested the court deny an individual freedom of capital movement on the grounds that the more appropriate freedom is that of establishment, which, however, is not relevant in the circumstances.
The Supreme Tax Court has referred to the ECJ on a refusal to grant the same inheritance tax allowance on a holding in Canada that would have been available on a domestic investment.