Capital gains tax is not an estate liability

The capital gains tax payable on a distribution claim is not an estate liability, which means that the distribution is subject to tax twice.

The capital gains tax payable on an inherited dividend claim against a GmbH is not deductible as a liability of the estate. With this decision, the Münster Fiscal Court has given the heir to a GmbH share the disappointing realization that the profit distribution, which was decided before the death of the father but only paid out after his death, is subject to both inheritance tax and capital gains tax. As the capital gains tax only arises with the inflow of the distribution, it is not a debt originating from the testator, even if the economic cause for the tax burden of the distribution with capital gains tax had already arisen through the distribution resolution and thus before the death of the testator. The court also has no constitutional concerns about the fact that a situation is subject to both inheritance tax and income tax, because it concerns different tax-triggering facts and the legislator has a wide scope of action.