6.

The following provisions of the German Law on inheritance and gift tax (Erbschaftsteuer- und Schenkungsteuergesetz), in the version published on 27 February 1997 (BGBl. 1997 I, p. 378), as last amended by Paragraph 11 of the Law of 7 December 2011 (BGBl. 2011 I, p. 2592, (‘the ErbStG’) state: ‘Paragraph 1 — Taxable events 1. Inheritance (or gift) tax shall apply to (1) transfers on death; (2) gifts inter vivos; (3) restricted gifts; ... 2. Unless provided otherwise, the provisions of the present Law relating to the transfer of assets on death shall apply also to gifts and restricted gifts, and the provisions relating to gifts shall apply also to restricted gifts inter vivos. Paragraph 2 — Personal liability to tax 1. Liability to tax arises (1) in the cases referred to in Paragraph 1(1), points 1 to 3, in relation to the entirety of the transferred assets (unlimited tax liability), where the deceased, on the date of death, the donor, on the date of making the gift, or the recipient, on the date of the chargeable event (Paragraph 9), is a resident. The following persons are regarded as residents: (a) natural persons whose permanent residence or habitual residence is in Germany, (b) German nationals who have resided abroad continuously for not more than five years without a permanent residence in Germany, ... (3) in all other cases, subject to subparagraph (3), in relation to transferred assets which are domestic assets within the meaning of Paragraph 121 of the Law on valuation [Bewertungsgesetz, “the BewG”] (limited tax liability). ... 3. At the recipient’s request, the entirety of the assets transferred, including assets which are domestic assets within the meaning of Paragraph 121 of the [BewG] (subparagraph 1, point 3), shall be treated as subject to unlimited tax liability if the deceased, on the date of death, the donor, on the date of execution of the gift, or the recipient, on the date of the chargeable event (Paragraph 9) is resident in a Member State of the European Union or in a State to which the Agreement on the European Economic Area applies. Multiple transfers from a single person in the ten years preceding and ten years following the transfer of the assets shall also be treated as subject to unlimited tax liability and aggregated in accordance with Paragraph 14. ... Paragraph 14 — Taking into account of previous transfers 1. Multiple transfers of assets from a single person to the same recipient within a period of ten years shall be aggregated by adding to the value of the latest transferred asset the values of the previously transferred assets on the date of their transfer. From the transfer duties on the total amount shall be deducted the duties which would have been payable on the previously transferred assets, having regard to the personal circumstances of the recipient and on the basis of the provisions applicable on the date of the last transfer. Paragraph 15 — Tax classes 1. According to the personal relationship between the recipient and the deceased or donor, the following three tax classes are distinguished: Tax class I: (1) the spouse and partner, (2) the children and stepchildren, ... Article 16 — Allowances 1. Exempt in the event of unlimited tax liability (Paragraph 2(1), point 1, and (3)) are transfers of assets to (1) a spouse or partner in the amount of EUR 500000; (2) to children within the meaning of tax class I.2 and to the children of deceased children within the meaning of tax class I.2 in the amount of EUR 400000; ... 2. In the event of limited tax liability (Paragraph 2(1), point 3), the amount of the allowance provided for in subparagraph 1 shall be replaced by the amount of EUR 2000.’