RISING COMPANY VALUES AND INSUFFICIENT ALLOWANCES – NEED FOR REFORM OF INHERITANCE AND GIFT TAX EXEMPTION RULES

Абстракт

Rising company values coupled with unchanged allowances are increasing the tax burden on small and medium-sized enterprises in the event of business succession. This paper analyses the existing exemption rules in German inheritance and gift tax law from a constitutional, tax and socio-political perspective. The focus is on unequal treatment through valuation procedures, exemption limits and the wage bill rule. The study combines legal analysis with statistical evaluation and shows that large corporate assets benefit in particular, while small and medium-sized enterprises are disproportionately burdened. International comparative models, particularly from Austria and Switzerland, show alternative approaches to fair and efficient design. The results demonstrate the need for reform with regard to constitutionally compliant equal treatment, social balance and tax precision. Recommendations for action for fairer corporate taxation are derived.