Endangering of Businesses by the German Inheritance Tax? – An Empirical Analysis

This contribution addresses the substantial tax privilege for businesses introduced by the German Inheritance Tax Act 2009. Advocates of the vast or even entire tax exemption for businesses stress the potential damage of the inheritance tax on businesses, as those often lack liquidity to meet tax liability. This submission tackles this issue empirically based on data of the German Inheritance Tax Statistics and the SOEP. The results indicate that former German inheritance tax law has not endangered transferred businesses. Hence, there is no need for the tremendous tax privilege for businesses in current German inheritance tax law. An alternative flat inheritance tax without tax privileges, which meets revenue neutrality per tax class according to current tax law, provokes in some cases relative high tax loads which might trouble businesses.

Dr. Ralph Garber, Canada, President of IASSW 1988 - 1996

A fully revealing portrait of Ralph Garber would require a latter-day Boswell. As ordained, however, an attempt must be made to create a recognizable word picture. And it must give initial attention to the range of influences and factors in Ralph Garber's inheritance and environment that, throughout his life, he experienced, absorbed and utilized in his remarkably creative career.

Dr. Ralph Garber (Canada), President 1988 - 1996

A fully revealing portrait of Ralph Garber would require a latter-day Boswell. As ordained, however, an attempt must be made to create a recognizable word picture. And it must give initial attention to the range of influences and factors in Ralph Garber's inheritance and environment that, throughout his life, he experienced, absorbed and utilized in his remarkably creative career.