Germany approves plans for inheritance tax reform
21-Dec-2007The German government has approved a proposal that could ease inheritance tax pain when family members pass businesses between themselves.
The new proposals would allow for a family member inheriting the business to be immediately liable for 15% of the inheritance tax liability. The balance would only be payable if control of the firm moves away from the new family owner before the end of a 15-year period, or if employee wages drop below 70% of their pre-transfer average.
But the proposed measure, which was compiled by a working group headed by Finance Minister Peer Steinbrueck, has come under attack.
Erwin Huber, leader of the Christian Social Union, has complained that many of the provisions contained in the planned new draft are "economically not defensible".
Delicious
StumbleUpon
Facebook
Newsvine
Digg