In the Netherlands, corporate funds have been partly exempt from
inheritance tax since the 'Successiewet' of 1956. Over the
years, the exemption increased for 30% initially to the present
situation of 100% on the first €1,006,000 and 83%
thereafter. The provision is meant to prevent liquidity problems
associated with company inheritance.
But an exemption of more than 75% is discriminatory in
comparison to other sources of inherited funds. An aggrieved heir
demanded equal treatment at the court of Breda, and the judge
agreed. Every heir has a right to a similar 100% exemption.
Naturally the tax authorities dispute this and will seek a ruling
of a higher court in the Netherlands.
By the looks of it, this case could go all the way to the
European Court of Human Rights. Experts agree that an exemption of
75% or more does violate article 26 of the International Covenant
on Civil and Political Rights (ICCPR) as well as article 14 of the
European Convention on Human
