OECD Tax Policy Studies Inheritance Taxation in OECD Countries
The report explores the role that inheritance taxation could play in raising revenues, addressing inequalities and improving efficiency in OECD countries. It provides background on the distribution and evolution of household wealth and inheritances, assesses the case for and against inheritance taxa...
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| Autor Corporativo: | |
| Formato: | Libro electrónico |
| Idioma: | Inglés |
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Paris :
OECD Publishing
2021.
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| Materias: | |
| Ver en Biblioteca Universitat Ramon Llull: | https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009704610206719 |
Tabla de Contenidos:
- Intro
- Foreword
- Acknowledgments
- Executive summary
- Notes
- 1 Household wealth and inheritances
- 1.1. The level of household wealth across OECD countries and over time
- 1.2. The distribution of household wealth
- 1.3. The asset composition of household wealth
- 1.4. Lifecycle patterns in household wealth
- 1.5. Characteristics of wealth transfers
- References
- Notes
- 2 Review of the arguments for and against inheritance taxation
- 2.1. Characteristics of inheritance taxation
- 2.2. Equity considerations
- 2.2.1. Inheritance and gift taxation enhances equality of opportunity
- 2.2.2. Inheritance and gift taxation can strengthen horizontal and vertical equity
- 2.2.3. Inheritance and gift taxes can reduce wealth inequality, particularly in the longer run and if revenues are redistributed
- 2.2.4. Inheritance taxes can help prevent the build-up of dynastic wealth
- 2.3. Efficiency considerations
- 2.3.1. Inheritance taxation may have a small negative impact on wealth accumulation by donors
- 2.3.2. There is evidence of significant inheritance and gift tax planning
- 2.3.3. Migration responses to inheritance taxation appear generally limited
- 2.3.4. Inheritance taxation encourages charitable giving
- 2.3.5. Inheritance taxation has been found to increase heirs' labour supply and savings
- 2.3.6. Inheritance taxation may negatively affect entrepreneurship by heirs and family business successions, but reduce risks of misallocating capital
- 2.3.7. The double taxation argument appears to be weak
- 2.3.8. Negative externalities from wealth concentration may strengthen the case for inheritance taxation
- 2.4. Tax administration considerations
- 2.4.1. Inheritance taxation has administrative advantages over other forms of wealth taxation.
- 2.4.2. Capital tax evasion has become harder with recent progress on international tax transparency
- References
- Notes
- 3 Inheritance, estate, and gift tax design in OECD countries
- 3.1. Use of inheritance, estate, and gift taxes across OECD countries
- 3.1.1. The majority of OECD countries tax inheritances
- 3.2. Tax revenues and shares of taxable estates
- 3.2.1. Revenues from inheritance and estate taxes are typically low, as a majority of estates go untaxed in a number of countries
- 3.2.2. Tax revenues dropped sharply in the 1970s and have remained relatively stable since
- 3.3. The different types of wealth transfer taxes
- 3.3.1. Most OECD countries levy inheritance taxes on the recipients of wealth transfers
- 3.3.2. The type of tax chosen involves trade-offs
- 3.4. Rules determining tax liability
- 3.4.1. Rules governing liability for inheritance and estate taxes vary substantially across countries
- 3.4.2. The risks of tax-related emigration, double non-taxation and double taxation can be minimised through tax design
- 3.5. Tax exemption thresholds
- 3.5.1. Close family members often benefit from more generous tax exemption thresholds
- 3.5.2. Spouses are exempt or benefit from the highest tax exemption threshold
- The tax exemption thresholds for children are typically among the highest, but the level varies across countries
- 3.5.3. Special tax exemption thresholds apply to minor heirs and heirs with a disability in a few countries
- 3.5.4. Tax exemption thresholds should balance the notion of care, with efficiency and equity objectives
- 3.6. Statutory tax rates
- 3.6.1. Tax rates typically depend on the amount of the wealth transfer and the relationship between the donor and the beneficiary
- 3.6.2. Progressive tax rates have several advantages compared to flat tax rates
- 3.7. Effective tax rates.
- 3.7.1. Effective tax rates are significantly lower than statutory tax rates and in some cases decline for the largest estates
- 3.8. Tax treatment of specific assets
- 3.8.1. A number of assets benefit from preferential tax treatment
- 3.8.2. Donors' main residence may benefit from special tax treatment
- 3.8.3. Family businesses benefit from generous concessions
- 3.8.4. Private pension savings can pass tax-free to beneficiaries in some countries
- 3.8.5. Life insurance and accidental death insurance may act as additional savings vehicles not subject to inheritance and estate taxes
- 3.8.6. Charitable giving is almost always exempt from inheritance and estate taxes
- 3.8.7. Favourable tax treatment applies to items of historical or cultural value in some countries, on the condition of being accessible to the broader public
- 3.9. Tax filing and payment
- 3.9.1. Tax filing and payment procedures vary, but many countries allow tax payment in instalments and conditional tax deferrals
- 3.9.2. Flexible payment options and taxpayer-friendly administration can improve compliance and efficiency
- 3.10. Valuation methods
- 3.10.1. The most common valuation method is fair market value, but this may be complex to apply to some asset types
- 3.10.2. Accurate and consistent valuation is key to efficient and equitable inheritance and estate taxes
- 3.11. The design of gift taxes
- 3.11.1. The design of gift taxes and their integration with inheritance and estate taxes varies widely across countries
- 3.11.2. Gift taxes should be carefully designed, in particular to avoid significant tax minimisation opportunities
- 3.12. Tax treatment of unrealised capital gains at death
- 3.12.1. Most countries that levy inheritance or estate taxes do not tax unrealised capital gains at death.
- 3.12.2. Allowing unrealised capital gains at death to partially or fully escape taxation reduces equity and efficiency
- 3.13. Tax planning, avoidance and evasion
- 3.13.1. Opportunities for tax planning and avoidance exist across OECD countries
- Bequests to certain heirs and bequests of certain assets
- Emigrating to a location with lower or no inheritance or estate taxes
- Holding private assets through businesses or taking advantage of valuation rules
- Gifting bare ownership of an asset, while retaining usufruct until death
- Interactions between inheritance or estate taxes and gift taxes or capital gains taxes
- Preferential tax treatment for charitable giving
- The use of trusts
- 3.13.2. Common forms of tax evasion range from simple cash gifts to sophisticated cross-border structures
- Undeclared wealth transfers and incomplete inventories
- Abuse of deduction provisions
- Wealth held offshore
- 3.14. Political economy of inheritance tax reforms
- 3.14.1. Inheritance and estate taxes tend to be unpopular and poorly understood
- 3.14.2. Information and policy framing are important to increase the public acceptability of inheritance tax reforms
- References
- Notes
- 4 Summary and recommendations
- 4.1. Key trends in OECD countries
- 4.2. Policy options and recommendations
- 4.2.1. Type of wealth transfer tax
- 4.2.2. Tax rate schedules
- 4.2.3. Exemptions and reliefs for specific assets
- 4.2.4. Tax treatment of inter vivos gifts
- 4.2.5. Asset valuation
- 4.2.6. Preventing liquidity issues
- 4.2.7. Tax avoidance and evasion
- 4.2.8. Reporting requirements and data collection
- 4.2.9. Tax treatment of unrealised capital gains at death
- 4.2.10. Cross-border inheritances and migration
- 4.2.11. Political economy.
