FREE [DOWNLOAD] GERMAN INHERITANCE AND GIFT TAX REFORM 2009 EBOOKS PDF Author :Carolin Braun / Category :Business & Economics / Total Pages : 91 pages
Download German Inheritance And Gift Tax Reform 2009 PDF Summary : Free german inheritance and gift tax reform 2009 pdf download - inhaltsangabe introduction background and subject of this thesis after long negotiations within the grand coalition gro e koalition and despite jurisdictional criticisms of numerous points on 31st december 2008 the new inheritance and gift tax law erbschaftsteuerreformgesetz - erbstrg was published in the federal law gazette bundesgesetzblatt to become effective on 1st january 2009 just in time to avoid the need for retroactive regulations and the related discussions this marks the end of the discussion about the future of the inheritance tax that has been started by the decision of the federal constitutional court bundesverfassungsgericht - bverfg from 7th november 2006 the related uncertainity came to an end at least for now in its decision the federal constitutional court states that the discrepance between fair market value and valuation value for significant groups of assets business assets portions of coporations real estate property and agriculture and forestry af businesses are violating the principle of equality of 3 sec 1 of the german basic law grundgesetz - gg the legislative was obliged to define a new legislation in line with the constitution until 31 december 2008 latest on 11 december 2007 the german federal government bundesregierung finally agreed on a draft revision of the inheritance and gift tax law and the valuation law the german federal parliament bundestag passed the inheritance tax reform on 27 november 2008 in the 2nd and 3rd reading during which the finance committee of the german parliament finanzausschuss des bundestages made considerable changes to the original draft the approval in the german federal council bundesrat was obtained in the special session of the council on 5 12 2008 the approval of the federal president bundespr sident on 24 12 2008 current situation in addition to the changes necessary for constitutional reasons the central concern of the reform is to simplify business takeover by the successors however the legislator neither has had the courage to - as hoped by many - completely abolish inheritance taxation not did he take the opportunity to perform a complete change of the inheritance taxation system which might become mandatory for constitutional reasons the result is a compromise
between of the various government parties a law that amends the existing inheritance tax law on which it is based in a limited number of points the new inheritance and gift tax law poses a variety of new requirements to the tax consultants unlike before preferential treatment for the transition of business assets can often only be realized if carefully prepared this becomes even more important because the new tax valuation increases the tax risk significantly on the other hand the new legislation allows for more freedom to tailor the taxation of transferred assets than recognised in the public debate partially this freedom is due to shortfalls in the new law and future amendments to correct these can be expected the ongoing and increasing - in some cases controversial - criticisms of the newinheritance tax law and valuation law by representatives of economics consultants auditing and various lobbies underlines the importance of the matter of burden effects on the transfer of business assets aim of this thesis the primary aim and focus of this work is to give an overview over the new inheritance and gift tax laws as well as on the innovations of the corresponding valuation law the resulting consequences of the inheritance tax burden on the transfer of business assets shall be presented in detail and numerous examples shall illustrated the practical application explanation of approach first in chapter 2 the development of the law reform is summarized the following chapter 3 presents a brief overview of the temporal scope of the reform the presentation of the changes effected by the reform of the valuation law is given in chapter 4 the most significant changes of the erbstrg with respect to bases and rates of the inheritance taxation are explained in chapter 5 in conjunction with the new preferential treatment regulations the total wages and salaries regulation and the clause introducing holding regulations then in chapter 6 as embedded into examples illustrating how to deal with the new regulations in practice issues are highlighted with which taxpayers and consultants will be confronted during the tailoring the transfer of assets note that the content of chapter 6 is presented in the german version only finally in chapter 7 the main results are summarized in a conclusion and a brief outlook on possible future developments is given inhaltsverzeichnis table of contents preface to the english version of this thesisi table of contentsii list of figuresv list of abbreviations0 1 background and subject of this thesis2 1 1current situation2 1 2aim of this thesis3 1 3explanation of approach3 2 evolution of the legislation4 2 1constitutional framework4 2 2decision of the bverfg on 22 june 19954 2 3decision of the bverfg on 7 november 20065 2 4the passed bill6 3 chonology of applicable regulations7 3 1general applicability7 3 2issue of retroactive effectivity7 3 3revokement and cancelation clauses8 4 reform of the valuation tax act 20099 4 1overview9 4 2valuation of the business assets10 4 2 1definition of the term of business assets10 4 2 1 1economic unit10 4 2 1 2perimeter of the
business assets10 4 2 2simplified capitalized earnings value method 200 bewg 11 4 2 2 1sustainably achievable annual revenue 201 bewg 13 4 2 2 2operating result 202 bewg 13 4 2 2 3factor of capitalization 203 bewg 14 4 2 3the minimum value14 4 3valuation of shares in corporations15 4 3 1general valuation principles15 4 3 2derivation from trading transactions16 4 3 3capitalized earnings value method16 4 3 4valuation of shares in corporations not quoted16 4 3 5amount of business assets of a corporation17 4 4valuation of real estate property17 4 4 1general valuation principles17 4 4 2valuation of undeveloped real estate18 4 4 3valuation of developed real estate19 4 4 3 1comparison value method20 4 4 3 2capitalized earnings value method21 4 4 3 3tangible asset value method21 4 5valuation of agriculture and forestry assets23 4 5 1definition of agriculture and forestry assets23 4 5 2fair market value for operating units23 4 5 3valuation23 4 5 3 1determination of the continuation value24 4 5 3 2minimun value for small-sized and midium-sized enterprises24 4 5 3 3liquidation value25 5 reform of the inheritance and gift tax act 200926 5 1overview26 5 2new free allowances26 5 2 1personal free allowances 16 erbstg 26 5 2 2free allowances for tangible property 13 erbstg 28 5 3new tax rates 19 erbstg 29 5 4rules for preferential treatment30 5 4 1assets qualified for preferential treatment 13b sec 1 erbstg 30 5 4 2business assets 13b sec 1 no 2 erbstg 31 5 5prefrential treatment regulations31 5 5 1preferential treatment models 13a erbstg 32 5 5 1 1standard preferential treatment 13a sec 1-7 erbstg deduction for 85 32 5 5 1 2total exemption preferential treatment deduction for 100 13a sec 8 erbstg 33 5 5 2 moving tax allowance 13b sec 4 erbstg 34 5 5 3melting regulation 13a sec 2 sentence 2 erbstg 34 5 6operative assets for tax purposes35 5 6 1determination of the portion of the operative assets for tax purposes 13b sec 2 sentence 3-4 erbstg 35 5 6 2 young operative assets for tax purposes36 5 7total wages regulation37 5 7 1definition of the total wages regulation 13a sec 4 erbstg 37 5 7 2base total wages and salaries 13a sec 1 sentence 3 erbstg 37 5 8holding regulations 13a sec 5 erbstg 38 5 9retroactive taxation39 5 9 1violation of the total wages and salaries clause39 5 9 2violation of the regualtions for holding40 5 9 2 1payment of time-proportional of additional tax principle 41 5 9 2 2payment of full-extent payment of additional tax total exception 41 5 9 3coincidence of violation of the holding regulations and total wages and salaries violation42 6 effects and calculations on organisation practice during the transmission of business assets43 7 conclusion and outlook44 appendix figures46 list of case law85 glossary english german86 glossary german english90 textprobe text sample valuation of agriculture and forestry assets definition of agriculture and forestry assets according to 158 sec 3 bewg agriculture and forestry af assets comprise all economic goods that continuously serve a business of agriculture or forestry in
the sense 158 sec 1 of the bewg here their purpose at the time of taxation is decisive 161 bewg in particular they include ground and land as well as buildings the so-called standing operational assets the normal inventory of circulating operational assets and the immaterial business assets for the valuation the affiliation of the individual business assets to this kind of agriculture and forestry assets the type of business of the agriculture and forestry is defined in 160 bewg fair market value for operating units it is new that for inheritance taxation purposes starting from 2009 the liabilities in economic relation to af assets belong to the af assets 158 sec 5 bewg the intention is a valuation by the fair market value 162 sec 1 bewg according to the legal definition the fiscal value for the inheritance taxation purposes is represented by the fair market value according to 162-166 bewg so far commitments counted amounting to the private possession it is reached by the allocation to the luf assets that for an economical unit of the luf asset by balancing the fiscal net acquisition can be determined the composition of the value of an enterprise of the land and forestry regulates 168 sec 1 bewg contrary to the past valuation is the value land and forestry a net value before so far liabilities were accounted normally to the private asset fortune by assigning them to the af assets balancing can yield the fiscal net acquisition the composition of the value of an af business is regulated by 168 sec 1 bewg contrary to the past valuation the value of af assets is a net-value so far the principles of mixed gifts were applicable in the case of the transfer of liabilities of an af business in the form of a gift mixed gifts are presented in future only if the transfer of af assets also comprises private obligations e g support obligations the legislator assumes that the acquirer continues the af business i e not the fictitious value for realisation in the sense of 9 bewg but a continuation value understood as the fair market value if the enterprise is not continued the fair market value to be set is to be evaluated later in a different way and a so-called liquidation value in accordance with 166 bewg shall be applied valuation for the determination of the fair market value of the operational parts of the agriculture and forestry assets the productive af areas the subsidiary assets as well as mining- useless and nearly useless aeras must be assessed separately usually by their economic value in accordance with 163 bewg continuation value the total economic value of the agriculture and forestry results then in accordance with 163 164 bewg from the sum of the economic values of the individual parts of the business this sum is limited downwards by the minimum value and upwards by the verified market value in accordance with 165 sec 2 bewg if the af enterprise or substantial operating bases are sold withdrawn or similar within 15 years then the liquidation value in accordance with 166 bewg replaces retroactively the value determined according to 163 - 165 bewg determination of the continuation
value the continuation value is determined in a typified net capitalized earning value method on the basis of the average net profits per agriculturally used area with a capitalization factor of 18 6 165 in conjunction with 163 bewg in the opinion of halaczinsky riedel leased areas should to be included into this value the net profit specified in 163 bewg is not an individual net profit but the net profit respectively net profit factor determined according to the valuation law and the attachments 14 - 20 bewg 163 sec 2pp prescribe how the net profit shall be determined the net profit that can be applied depends in accordance with 163 sec 3 and 4 bewg on the type and size of the business the size of business results from the standard profit margin divided by 1 200 eur example continuation value a large-scale business agriculture in the sense of 163 sec 3 bewg in the region of magdeburg here 180 ege has a net profit of 107 eur ha following attachment 14 column 4 bewg in the case of 200 ha a capitalised net profit of 107 eur x 200 x 18 6 398 040 eur would be obtained minimun value for small-sized and midium-sized enterprises a medium-sized enterprises that yield only small or negative net profits a minimum economic value must be assigned for fiscal purposes 164 bewg the minimum value is obtained from the value of the ground and the value of remaining economic goods each capitalised with 18 6 example minimum value a medium-sized business agriculture in the sense of 163 sec 3 bewg in the region of magdeburg is assumed to have 80 ege and an agriculturally used area of 80 ha according to attachment 14 column 4 bewg the net profit was -22 eur ha thus a clearly negative net profit therefore in this case the minimum value is to be applied in accordance with 164 bewg the land value is accounted as 100 eur x 80 8 000 eur plus a plant capital of 77 eur x 80 6 160 14 160 eur x 18 6 263 376 eur intermediate minimum economic value liquidation value if an af business or a share of it in the sense of 158 sec 2 sentence 2 bewg is sold within less than 15 years after the comparison date of the valuation the valuation of the business unit is performed deviating from 163 164 bewg by applying the liquidation value as in 166 bewg Pusblisher : diplom de on 2009-11-02 / ISBN : 9783836637824
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