This summer we reported on the Advocate General’s opinion on the matter Yvon Welte v. Finanzamt Velbert. The matter concerns the question as to whether Articles 56 [EC] and 58 [EC] should be interpreted as precluding German national legislation on inheritance tax under which, in cases where…

On 19.6.2013 the German Federal Tax Court held that the guarantee of property does not require Germany to credit foreign inheritance tax levied by a foreign country on a claim due from a foreign bank against domestic inheritance tax payable on that claim. Surprisingly, the…

The European Commission has decided to refer Germany to the EU's Court of Justice because of its legislation on inheritance and gift tax allowances. Under German law, there is a higher tax exemption for inherited German property if the testator or the heir are living in Germany, than if they are…

Regulation (EU) No 650/2012 of the European Parliament and of the Council of 4 July 2012 on jurisdiction, applicable law, recognition and enforcement of decisions and acceptance and enforcement of authentic instruments in matters of succession and on the creation of a European Certificate of…

On July 25, 2012, the U.S. Senate voted on a bill to extend income tax cuts that expire December 31, 2012. Unfortunately, the bill failed to address the estate tax. The vote was along party lines and Democrats sidestepped the estate tax, which currently allows for an individual exemption of $5.12…

On July 26, 2012, the U.S. Department of the Treasury published a model intergovernmental agreement to implement the Foreign Account Tax Compliance Act (“FATCA”). FATCA targets non-compliance by U.S. citizens and residents using foreign accounts. The agreement was developed in…

Switzerland and France have recently initialled a revised bilateral agreement between the two countries for the avoidance of double taxation in the field of inheritance and estate taxes. The revised agreement will replace the agreement dating from 1953.
As a result, the inheritance tax imposed…

Today, the Commission's proposal to simplify the settlement of international successions received the final backing of the Council of Justice Ministers of the EU. The European Commission proposals will ease the legal burden when a family member with property in another EU country passes away. Once…

Reference for a preliminary ruling from the Finanzgericht Düsseldorf (Germany) lodged on 18 April 2012 — Yvon Welte v Finanzamt Velbert (Case C-181/12) Finanzgericht Düsseldorf Parties to the main proceedings Applicant: Yvon Welte Defendant: Finanzamt Velbert Question…

UK government intends to increase the IHT-exempt amount that a UK-domiciled individual can transfer to their non-UK domiciled spouse or civil partner. The government similarly intends to allow individuals who are domiciled outside the UK and who have a UK-domiciled spouse or civil partner to elect…

The European Parliament has today granted its support to a proposal for new rules that will allow succession cases connected to several Member States to be settled by one authority and under one set of rules. This regulation, once passed, will establish the rule, that the law of the last permanent…

The U.S.A, France, Germany, Italy, Spain and the United Kingdom have signed a Joint Statement regarding an Intergovernmental Approach to Improving
International Tax Compliance and Implementing FATCA.

Federal Constitutional Court - Press office -
Order of 21 July 2010 – 1 BvR 611/07, 1 BvR 2464/07 – Unequal Treatment of Marriage and Registered Civil Partnerships in
Gift and Inheritance Tax Act Unconstitutional Pursuant to the provisions in §§ 15, 16, 17, and 19 of…

The Internal Revenue Service today reopened the offshore voluntary disclosure program to help people hiding offshore accounts get current with their taxes and announced the collection of more than $4.4 billion so far from the two previous international programs. The IRS reopened the Offshore…

Deputy Prime Minister Saenz de Santamaria announced the plan to crack down on tax cheats. In the future, Spain will scrutinize tax returns more closely and increase coordination with revenue agencies in Spain's autonomous regions and "tax havens" such as Andorra, Panama, the Bahamas and the…

Germany has started to create a central will registry which is managed by the chamber of German notaries ("Bundesnotarkammer"). The will registry is currently digitalizing information provided by the German civil registers that are currently responsible to inform German probate courts that a…

Brussels, 15 December 2011 - EU citizens that inherit foreign property are frequently faced with a tax bill from more than one Member State. In fact, in extreme cases the total value of a cross-border inherited asset might even have to be paid in tax, because several Member States may claim…

German Law on inheritance and gift tax: New regulations for situs taxation in force
Pursuant to Section 16(1) of the German Law on inheritance and gift tax (Erbschaftsteuer- und Schenkungssteuergesetz) a taxpayer is entitled to acquire up to €500 000 tax-free depending on the degree of…

The European Commission has formally requested Germany to amend its inheritance tax and gift tax legislation which discriminates against residents of other EU Member States in breach of EU law on the free movement of capital. The Commission's request takes the form of a "Reasoned Opinion" (second…

On 12 February 2009, the European Court of Justice (ECJ) held that the free movement of capital does not require a Member State (MS) to credit foreign inheritance tax levied by another MS on a claim due from a foreign bank against domestic inheritance tax payable on that claim. Background
Ms…