Addressing the issue of inheritance tax following the adoption of the Successions Regulation (No 650/2012)

13.2.2013

Question for oral answer O-000011/2013
to the Commission
Rule 115
Klaus-Heiner Lehne
on behalf of the Committee on Legal Affairs

The Successions Regulation (No 650/2012) – a great success for the European Union and its institutions – was signed on 4 July 2012. It will start being applied on 17 August 2015.

It will considerably simplify matters for the growing number of citizens who have connections with several Member States, as it will allow them to organise their succession by means of a single will applying the law of a single Member State.

The taxation of successions is not covered by the Regulation. The way that inheritance tax, or its equivalent, is assessed, calculated and collected in the various Member States is very different. Often, Member States tax the global estate of a deceased resident, but also the assets of deceased non-residents which are located on their territory. In certain situations the heirs only receive a very small part of the inheritance after it has been taxed by several Member States. The Commission addresses this problem in its Recommendation 2011/856/EU regarding relief for double taxation on inheritances.

However, recently, the Committee on Legal Affairs and its Members have been contacted by a number of concerned citizens and practitioners who, although they are pleased that something has been done to address the issue of cross-border successions, struggle with the interpretation and practical implications of the Regulation and the Recommendation for cross-border successions.

1.  Is the Commission aware of this situation?

2.  What is the Commission doing or intending to do to facilitate the use and application of Regulation (EU) 650/2012 by the citizens and practitioners who are affected ?

3.  Has the Commission examined the impact of Recommendation 2011/856/EU on the double taxation of successions in the Member States? What feedback can it provide?

4.  Is the Commission considering proposing European legislation to prevent double taxation? What shape could a legislative solution to coordinate national tax systems take?

Tabled: 13.2.2013

Forwarded: 15.2.2013

Deadline for reply: 22.2.2013