Thursday, September 22, 2016

Compromise: Federal government and the Länder agree on estate tax reform – THE WORLD

date: 07:53 PM read | write duration: 2 minutes

the Federal government and the Länder agree on a compromise

source: The world

representatives of Union, SPD, Greens and Left have agreed on new rules for the tax treatment of corporate heirs. Under certain conditions, the heirs are preferred, furthermore, for tax purposes.

source: The world

After a long struggle, have agreed to the Federation and the Länder on the Reform of the inheritance tax.

  • In the conciliation Committee acknowledged the dealer last inconsistencies in the favoring of corporate heirs.
  • Should not, however, agree with the Federal Council, could render the Federal constitutional court’s requirements.

Khortly before the end of a last by the Federal constitutional court deadline to have agreed to the Federation and the Länder on a compromise on the Reform of the inheritance tax. Representatives of Union, SPD, Greens and Left have agreed on a Wednesday evening in the conciliation Committee on new rules on the tax treatment of corporate heirs.

The compromise that must still agree to the Bundestag and the Bundesrat. This could still be done in this week – maybe this Friday in a summary proceeding.

With the agreement benefit company heirs in the future for tax purposes, if you will lead the company long time and jobs. The Federal constitutional court had tilted the former privileges at the end of 2014 as a to a great extent.

the court could influence the law

Actually, this should be tightened until the end of June. This period was unable to comply with the legislature. The Bundestag before the summer break agreed rules of the SPD, Greens and the Left were in the countries to be generous. The Federal Council rejected the law.

Should fail a final agreement in Parliament and the länder chamber, to the study of the Federal constitutional court favors, again with the tax, and then your own specifications. If the act, decision, until then, wants to Karlsruhe on 27. and 28. September on the agenda. At the end of the Constitution could overturn judge the privileges for corporate heirs.

Before the decisive negotiations of the conciliation Committee of the Bundestag and the Bundesrat both sides were, in fundamental points. Among the especially controversial questions of the company and additional benefits for a family business or the rules for corporate heirs that do not wish to interfere with private property. Especially between the CSU and the SPD, Greens and Left-ruled countries, the positions were far apart.

Seehofer satisfied with a compromise

Bavaria’s Prime Minister Horst Seehofer (CSU) welcomed the agreement. “I’m satisfied, even very satisfied,” he said of the “süddeutsche Zeitung”. Schleswig-Holstein Finance Minister Monika Heinold (Green) highlighted that the participants in the negotiations were “in fact received”. You will check the result now “honored,” she told the newspaper. To her, it was “very important that the legislature and not the Federal constitutional court decides”.

five-to-six billion euros per year flushes the Inheritance and gift tax into the state coffers. That’s not even a hundredth of the total tax revenue. The revenue to the countries. Inherit it but on the one hand, an adequate exposure of the Company to meet the requirements of the constitutional court. On the other hand, companies and jobs should be threatened.


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