en de es fr it pt zh-CN Find us on Twitter Find us on LinkedIn

German Court Orders Inheritance Tax Overhaul

Germany's Federal Constitutional Court on December 17, 2014, ordered the Government to make changes to a law that grants inheritance tax breaks to family businesses.

The Court said that the current provisions will apply for the time being, but revisions should be made by June 30, 2016.

The Court ruling acknowledged that the legislature has a right to award preferential treatment under the tax code to small- and medium-sized companies managed by their owners to shield them from tax-related liquidity problems which may undermine their existence and the jobs they provide.

However, it said that such preferential treatment is disproportionate when it is applied to large companies as well as small companies without an economic-means test. In such cases, due to the scale of the tax-exempt amounts, the unequal treatment reaches a scope that is no longer compatible with the principle of equal taxation unless a necessity to exempt the acquired company is specifically determined, it said.

Preferential tax treatment should only be granted in cases where an economic means test identifies a serious risk of liquidity problems in the context of taxing a transfer of companies that does not involve payment, the Court said.

Deputy Finance Minister Michael Meister said that the legislature will decide on revisions to the law after careful consideration of the Court judgment.


Howlader Maria & Co joins TGS Global Network

Howlader Maria & Co., Chartered Accountants is a professional firm in Bangladesh which is being formed to provi

Read more >

Experience Provider joins TGS Global Network

Experience Provider M.E. Limited, is one of the top public accounting and tax advisory services firms in Jordan. They ar

Read more >

Quantum Auditors & 123 Consulting joins TGS Global Network

TGS are proud to be in South Africa with our most recent member, Quantum Auditors / 1.2.3. Consulting. With offices situ

Read more >

Massie Turcotte joins TGS Global Network

TGS are proud to announce a new member in Canada.   Massie Turcotte gives TGS a presence that stands out from other

Read more >

PGK Consultores joins TGS Global Network

TGS is delighted to announce the membership of PGK Consultores, Argentina. PGK is a dynamic firm whose partners began th

Read more >