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Inheritance Tax’s Impact on the Business Activities of Family Companies

Image Inheritance Tax’s Impact on the Business Activities of Family Companies

May 6, 2014: The preferential treatment of business assets in the case of inheritance or gifts, or so called tax relief, contributes to the maintenance of the size of investment and the number of employees at family firms. These are the results of a recent survey conducted by the Ifo Institute of 1,800 family companies on the impact of the inheritance and gift tax on their business activities. Out of the family companies that had a case of inheritance or gifts, 43% reported that in the wake of succession regulations, they would have been forced to sell the company, or parts of it, if tax relief had not existed.

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