Section 30 of the Inheritance and Gift Tax Act provides for a 3-month notification period before.
The notification period begins for all beneficiaries upon becoming aware of the inheritance, or, in the case of donees, upon becoming aware of the gift.
The background to this is that the Obligation to report is intended to make it easier for the tax office to assess whether, and if so, whom it should require to submit a tax return in individual cases. In the area of Inheritance tax There is no general obligation to file a tax return; rather, the obligation applies only to those who have actually been requested to do so by the tax office. The notification to the tax office may be made informally. The tax office responsible for this notification is that of the deceased or the donor. (Section 35 of the Inheritance Tax Act).
It is important to note that, where there are several parties on the purchaser’s side, there is no option to „rely on the others“. Each individual purchaser is subject to the duty to notify. However, the other parties are relieved of this obligation if one party subject to the duty has made the notification. This also applies to those entitled to a compulsory share if the heir has taken the claimed compulsory share into account in their notification.
The acquirer must have gained reliable and certain knowledge of the inheritance. The point in time at which such knowledge was acquired, i.e. reliable knowledge of the inheritance taking effect, is generally not deemed to have occurred in a case of inheritance where a testamentary disposition exists, until such time as the will has been opened and the period for renouncing the inheritance has commenced. As long as the period for renouncing the inheritance is still running, a notification cannot be expected, as the acquisition is not yet final and, furthermore, a notification by the beneficiary could then be construed as acceptance of the inheritance. In the case of inheritance by operation of law, the beneficiary must be certain that there are no relatives of a higher order and, furthermore, must know the share of the estate to which they are entitled. They must also be certain that this acquisition will not be contested by third parties and that they are recognised as an heir. In such a case, knowledge of the matter may only be established on a case-by-case basis once a certificate of inheritance confirming the beneficiary’s right to inherit has been issued.
Once the three-month period has expired, a fine may be imposed or criminal proceedings may be considered. However, the obligation to report the offence continues even after the deadline has passed. A report may still be submitted retrospectively during the attempt stage of the offence, in accordance with the criminal law rules on withdrawal within the meaning of the Section 22 of the German Criminal Code (StGB) take place; once the offence has been committed, the only option available thereafter is a voluntary disclosure exempting the perpetrator from punishment within the meaning of the § 371 AO possible.
According to the wording of the law, any acquisition subject to inheritance tax must be reported – it is irrelevant whether this subsequently results in a tax liability for the acquirer; therefore, gifts covered by an allowance are, in principle, also subject to the reporting requirement. However, this would be very broad in scope, as it would then mean that every Christmas and birthday present would also have to be reported, which would run counter to the legislative intent of the provision.
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