Categories: Economy

State loses millions in estate taxes Related articles

The treasury loses hundreds of millions of euros in inheritance taxes. Inheritance tax revenue could have been three billion euros in 2020, but instead amounts to only one and a half billion euros.

This is evident from the research of the journal of economists ESB, about which FD writes. The declining income is the result of a change that was implemented in 2010.

Inheritance tax revenue could have been that billion euros in 2020, but it amounts to only one and a half billion euros. (ANP / Laurens van Putten)

“The strange thing is that in 2006 I wrote a piece showing that income from estate tax would actually go up,” says economist and author of the piece Misha van Denderen. Due to the aging of the population, a large group of people with large fortunes and few children would die. This would result in more inheritance taxes.

Legislative amendment of 2010

However, his son Milan van Denderen, who also authored the piece, came to the conclusion that this assumption was not true. “We dived into this together and found that there is a decrease in income instead of an increase.” This is due to the 2010 amendment to the law, he says.

The purpose of the amendment was to combat tax avoidance, including through trusts and foundations. “But in practice it proves difficult,” says Van Denderen. ‘You could try to fight this tax evasion really effectively, but it’s difficult and it’s been on the political agenda for a long time. Especially if it goes through trust funds.”

Also listen | Looking for a property – Transfer your property in a tax-advantageous way

According to Mischa van Denderen, the current company succession plan (BOR) should be reduced. “Just like the so-called pact of passage with which the payment of the inheritance tax can be deferred indefinitely”.

Politically sensitive

The publication comes at a time when there is much discussion in The Hague about the unequal distribution of wealth in the Netherlands and whether something can be done about it through taxes. One of the tools is a higher inheritance tax.

Author: John Luke
Source: BNR

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