Tackling Cross Border Inheritance Tax obstacles – Last Tuesday (18th September) another
report presented by Vincent Farrugia, EESC Employers Representative and GRTU
Director General, as appointed rapporteur was formally adopted as EESC Opinion
with 135 votes in favour, 1 against and 11 abstentions.
The Farrugia report is now the official
EESC Opinion to the Commission Communication on Tackling cross-border
inheritance tax obstacles within the EU and the Commission recommendation
regarding relief for double taxation of inheritances.
EU citizens who inherit assets across
national Member State borders are frequently faced with taxation in two or more
different Member States (i.e. double or multiple taxation) and tax
discrimination. These problems often impose undue hardship on citizens and
hamper the achievement of the EU-2020 objectives. In an attempt to address
these problems, the Commission presented a Communication in 2011 and an
accompanying Recommendation.
In his report Mr Farrugia stated that
the EESC is in favour of removing double/multiple and discriminatory taxation,
and welcomes the approach adopted by the Commission which respects the tax
sovereignty of individual Member States while calling for better interfacing of
national tax systems.
It is however the opinion of the EESC
that the Commission can be more effective in achieving the final aims of this
exercise by:
proposing and implementing practical mechanisms which,
within a reasonable period of time, would ensure the efficient interfacing of
national tax systems with respect to inheritance taxes, while encouraging
Member States to institute and operate double/multiple taxation relief
mechanisms in a more effective and flexible manner;
using legislative mechanisms so as to effectively
eliminate inheritance tax double/multiple taxation of EU citizens;
going beyond cross-border taxation issues to look into
the potentially distortionary effects arising from differences in the
computation of the inheritance tax base by different national tax
jurisdictions, by setting common principles applicable across the EU which are
based on fair net asset valuations and which safeguard the business entity unit
as a going concern;
actively promoting more effective, efficient and
citizen-friendly taxation systems, involving the least possible burden on
taxpayers;
studying the issues which impinge on EU citizens
arising out of global cross-border inheritance taxes;
studying the possibility of simplifying inheritance
taxation in cross border situations through a system which imposes taxation
once at a sole point of taxation determined by the location of the asset.
The EU Taxation Observatory, whose
creation under the auspices of the Commission has been suggested in EESC
opinions dealing with multiple and
discriminatory taxation, could serve as the instrument through which the above
recommendations are implemented.
This is the fifth successful Farrugia
report being adopted as EESC Opinion.
13 May 2025
The Malta Chamber of SMEs, representing a number of licensed private education institutions, refers to...
12 May 2025
As an employer, ensuring your team feels valued and fairly compensated is key to maintaining...
12 May 2025
Organised by The Malta Chamber of SMEs in collaboration with Business Doctors Malta, the session...
The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.
A membership with Malta Chamber of SMEs will guarantee that you are constantly updated and informed with different opportunities which will directly benefit your business and help you grow. It also entails you to a number of services which in their majority are free of charge and offered exclusively to its members (in their majority all free of charge).
