International and EU issues relative to succession and gift taxes : a comparative study

Abstract

Strong controversies associated with inheritance and gift taxes have emerged in modern history. The discourse has increased with the incidence of double, or even multiple, taxation. The complexities surrounding cross-border inheritance and donations reflect the fact that in every such instance, the foreign tax implications need to be assessed due to the potential multiple tax incidence in different jurisdictions, as may apply. The problem is exacerbated by different definitions of the connecting factors in the various countries, as well as the different rules of unilateral reliefs. The CJEU has consistently held that inheritance and gift taxation may hinder mainly the freedom of movement of capital and the freedom of movement for persons enshrined in the TFEU. The lack of a synchronised fiscal policy and the use of different valuation methods across Member States may lead to a potential infringement of the freedom of movement of capital. Reforms to eliminate double taxation depend mainly on the political consciousness of the states themselves and their will to put the subject on top of their agenda. Nonetheless, it is necessary to continue the political and academic debate on the desirable reform of these taxes particularly for promoting a rethink to the way in which double taxation can be eliminated.