Inheritance tax
October 28, 2009 | 50,00 EUR | answered by Dr. Dr. Danjel-Philippe Newerla
Dear Sir or Madam,
I inherited a house from my uncle in Cologne on 5.8.2009 and therefore fall under the inheritance tax rates that have been in effect since 1.1.2009. These rates are constitutionally controversial due to the equal treatment of nephews and nieces with third parties. In the new legislative period, they are supposed to be changed again according to the coalition agreement (preferential treatment of nieces and nephews over third parties). I have not yet filed my inheritance tax return. How can I ensure that any future changes to the inheritance tax rates will also apply to me (potentially resulting in lower tax rates)?
Sincerely,
Paul Greis
Dear seeker of advice,
Thank you for your inquiry!
Taking into account the information you provided, I am happy to answer your questions as follows:
The new government does indeed intend to recalculate the inheritance tax rates for nieces/nephews. However, many details are still unclear, such as whether the tax burden should ultimately be 25% or only 20%.
Unfortunately, you do not have direct control over benefiting from any potentially more favorable new regulations.
In principle, it is mandatory to report every gift/inheritance to the relevant tax office within three months. Once this report is properly submitted, the tax office will calculate and eventually collect the inheritance tax according to the current applicable inheritance tax law.
Failing to submit the tax return on time could lead to issues ranging from late payment penalties to a criminal investigation for tax evasion, so it is generally advisable not to delay the inheritance tax report to the tax office.
However, accepting a short-term late payment penalty might be advantageous. Nevertheless, a conclusive assessment cannot be made remotely in a first consultation, as the entire tax-relevant situation would need to be considered.
Therefore, I recommend engaging a colleague experienced in inheritance tax law or a tax advisor locally to assess the risks and determine a strategy for the next steps.
Ultimately, it is advisable to make the most of the aforementioned three-month period to potentially fall under a change in inheritance tax law.
I hope this information has been helpful. Feel free to contact me through the follow-up option on this portal or via my email address if you have any further questions.
I would like to point out the following: The legal advice I provided is based solely on the information you provided. My response is only an initial legal assessment of the situation and cannot replace a comprehensive evaluation. Adding or omitting relevant information could lead to a completely different legal assessment.
Have a pleasant Wednesday afternoon!
Kind regards,
Dipl.-Jur. Danjel-Philippe Newerla, Attorney at Law
Heilsbergerstr. 16
27580 Bremerhaven
kanzlei.newerla@web.de
Tel. 0471/3088132
Fax.0471/57774
