German inheritance tax law unconstitutional

31st January 2007, Comments 0 comments

31 January 2007, Berlin (dpa) - German inheritance law which charges heirs a higher tax for cash, shares and bonds than for property or businesses is unconstitutional, the country's highest court ruled Wednesday. The current system can operate only through the end of 2008, and from 2009 a new inheritance law will be necessary, the Federal Constitutional Court in Karlsruhe said. Chancellor Angela Merkel's coalition government is sharply divided over how to change inheritance law. Merkel's Christian Democrat

31 January 2007

Berlin (dpa) - German inheritance law which charges heirs a higher tax for cash, shares and bonds than for property or businesses is unconstitutional, the country's highest court ruled Wednesday.

The current system can operate only through the end of 2008, and from 2009 a new inheritance law will be necessary, the Federal Constitutional Court in Karlsruhe said.

Chancellor Angela Merkel's coalition government is sharply divided over how to change inheritance law.

Merkel's Christian Democrats (CDU/CSU) strictly oppose any increase to inheritance taxes on the Mittelstand - the small and medium-sized businesses which form the backbone of Germany's economy.

But her Social Democratic Party (SPD) government partner wants to raise taxes on people who inherit large properties or companies. dpa lm wjh

DPA

Subject: German news

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