The role of inheritance tax offices: tasks, structure and important facts

Inheritance and gift taxes are a central component of tax administration in Germany. Specialised inheritance tax offices play an essential role in this by managing all aspects of inheritance and gift tax. But what tasks do these offices perform, how are they structured, and what are the relevant current figures?

Tasks of inheritance tax offices

The tasks of inheritance tax offices are diverse and can be divided into several core areas:

• Investigation and assessment procedures: These involve investigating the tax facts and determining the basis for taxation. This includes checking tax returns and assessing the tax.
• Taxation procedures: The tax offices carry out the taxation procedure by calculating the amount of inheritance and gift tax. They evaluate the assets in accordance with the legal requirements and apply the relevant tax classes and allowances.
• Tax collection and enforcement procedures: If taxpayers do not pay the assessed amounts on time, the tax offices are responsible for collecting the taxes. They can take measures such as reminders, seizures or enforcement to enforce tax claims.
• Appeal and correction procedures: Taxpayers have the option of appealing against tax assessments. The tax offices process these appeals and clarify any discrepancies as part of the correction procedure.
• Criminal tax and fine proceedings: If tax evasion or administrative offences are suspected, the tax offices initiate appropriate proceedings to ensure compliance with tax regulations.

Structure of inheritance tax offices

In Germany, there are a large number of inheritance tax offices that operate at the regional level. Each of these offices is responsible for a specific geographical district. Here are a few examples:

• Baden-Württemberg: Tax offices in Aalen, Freiburg-Land, Karlsruhe-Durlach, Mosbach, Reutlingen, Sigmaringen, Tauberbischofsheim and Villingen-Schwenningen.
• Bavaria: Tax offices in Amberg, Eggenfelden, Hof, Kaufbeuren, Lohr am Main and Nördlingen.
• Berlin: Inheritance tax office in Berlin-Schöneberg.
• Hesse: Tax offices in Fulda, Kassel II-Hofgeismar and Wetzlar.
• North Rhine-Westphalia: Tax offices in Aachen-Stadt, Arnsberg, Bochum-Süd, Detmold, Duisburg-West, Cologne-West, Krefeld, Münster-Innenstadt and Velbert.

Important figures, data and facts

• Allowances and tax classes: Allowances and tax classes vary depending on the degree of kinship to the deceased and influence the amount of inheritance tax payable. For example, spouses and children are entitled to higher allowances and lower tax rates than more distant relatives or non-relatives.
• Revenue from inheritance tax: In 2022, around 7.5 billion euros in inheritance and gift taxes were collected in Germany. This figure illustrates the economic importance of inheritance tax for the national budget.
• Distribution of responsibilities: Inheritance tax offices are represented in all federal states and divided into regional districts to ensure fair and efficient administration of tax matters.

Here is the list of tax offices responsible for inheritance tax matters

Baden-WürttembergBavariaBerlinBrandenburgBremenHamburgHesseMecklenburg-Western PomeraniaLower SaxonyNorth Rhine-WestphaliaRhineland-PalatinateSaarlandSaxonySaxony-AnhaltSchleswig-HolsteinThuringiaThese offices are responsible for the administration of inheritance and gift tax in their respective districts.

Conclusion

Inheritance tax offices are a central institution in the German tax system. They are responsible for administering and collecting inheritance and gift tax, conducting tax proceedings and ensuring compliance with legal regulations. Their structured organisation enables efficient processing of tax matters and contributes significantly to ensuring tax compliance.