MF proposes to postpone the date of the tax obligation when purchasing an inheritance

The tax obligation in inheritance and donation tax will arise at the time of obtaining documents confirming the acceptance of the inheritance, and not – as at the moment – upon its adoption – results from the draft amendment to the Act on inheritance tax and donations.

On Friday, a draft amendment to the Act on inheritance and gift tax was published on the website of the Government Legislation Center. Among the changes to be introduced by the amendment is to clarify the moment of tax obligation when acquiring an inheritance and the obligation to submit a tax return with it. Currently, the taxpayer often simply does not know that he has received a inheritance.

“(…) a declaration of acceptance or rejection of the inheritance may be submitted within six months from the day on which the heir learned about the title of his appointment to the inheritance – and the lack of such a statement at that time is tantamount to accepting an inheritance with the benefit of inventory. The testimonies within a month from the date of acceptance of the inheritance, it is de facto impossible.

In addition – as indicated – although in accordance with the Civil Code, the acquisition of an inheritance takes place at the time of the testator's death, the heir must obtain a decision on the acquisition of the inheritance or a registered act of inheritance certificate in order to be able to appear before the tax authorities. Without these documents, the heir cannot be a party to tax proceedings.

“For the above reasons, it is proposed (…) that the tax obligation when acquiring the ownership of things and property rights by inheritance will arise as soon as the court's decision on the acquisition of an inheritance becomes final, registration of the act of confirmation of inheritance or issuing a European inheritance certificate” – explained the authors of the project.

According to the Ministry of Finance, such a solution is undoubtedly beneficial for taxpayers, because it clearly binds the moment of tax obligation with the formal obtaining of a document (letter) confirming the status of the heir and ID to act before the tax authority and further extends the time to submit a tax return (this moment is later than the moment of accepting the inheritance).

The draft also includes the provisions regarding the date of submitting the tax return in a situation where the taxpayer takes over the inheritance and obtains the necessary documents. The Ministry of Finance proposed to indicate that the declaration should be submitted within one month from the date of the tax obligation.

The ministry also included in the draft provisions aimed at introducing the possibility of restoring the deadline for notifying the acquisition of property or property rights and the deadline for notifying the purchase of the company's property by inheritance or debt recovery.

The justification explained that members of the immediate family are exempt from inheritance and donation tax provided that the property or property rights were acquired in a timely manner. This period is not subject to restoration based on the provisions of the Tax Code, and failure to submit the notification within the time limit causes the loss of exemption and taxation of the acquired inheritance or donation.

The Ministry of Finance indicated that despite the 6-month-old deadline for the notification “there are random situations that prevent this deadline for not related to the taxpayer.” It added that a similar situation occurs if the buyer did not fail by inheritance or debt recovery of the company's ownership or participation in it.

Therefore, the ministry proposed that the deadlines would be restored at the taxpayer's request, if he makes the failure to comply with his fault.

In addition, the draft includes provisions aimed at the possibility of emotion of the tax authority's decision if he refuses to restore the deadline for submitting the application and if as a result of the taxpayer's lodging a complaint to the administrative court for such a decision, this deadline will be restored. According to the draft, if the deadline is restored as a result of a court decision, it will be possible to set aside the decision of the refusal tax authority and discontinue the tax inspection.

The planned act is to come into force in 14 days from its announcement in the Journal of Laws. (PAP)

ms/ mmu/