WRITTEN QUESTION P-3068/00

by Linda McAvan (PSE) to the Commission

(22 September 2000)

Subject: Inheritance taxes in Belgium

Could the Commission indicate whether Belgium is in compliance with EU law when it freezes the bank accounts of deceased EU citizens whose families are not resident in Belgium and requires the payment of a guarantee on inheritance taxes before allowing relatives access to funds?

It is my understanding that this policy places undue burden on bereaved families who need to arrange funeral expenses, mortgage payments and a great deal more, simply because they are resident in another Member State.

Answer given by Mr Bolkestein on behalf of the Commission

(18 October 2000)

As Community law stands at present, inheritance taxes do not as such fall within the purview of the Community. The power of the individual Member States to enact and enforce the relevant regulations in that field must nevertheless be exercised consistently with Community law.

The freezing of bank accounts of deceased Community citizens whose families are not resident in Belgium, and the requirement imposed on relatives to pay a guarantee on inheritance taxes before allowing them access to funds, does not appear to be a disproportionate measure in order to ensure effective recovery of these taxes.

Member States indeed have the right to take protective measures in order to preserve the rights of the Treasury as effectively as possible. In that regard, it must be noted that funds, placed on bank accounts, have an extremely volatile character: they can easily be transferred abroad. Furthermore, it has to be observed that bilateral tax conventions generally do not provide for mutual assistance with regard to the recovery of inheritance taxes (in the case of Belgium, such assistance is only provided by a treaty of 20 January 1959 with France). Nor does Council Directive 76/308/EEC of 15 March 1976 on mutual assistance for the recovery of claims resulting from operations forming part of the system of financing the European agricultural guidance and guarantee fund, and of the agricultural levies and customs duties(1) apply to inheritance taxes. In those circumstances, the freezing of bank accounts of deceased Community citizens, whose inheritors do not reside in Belgium, and the corresponding requirement imposed on those inheritors to pay a guarantee is in principle to be considered as a proportionate measure for protecting the rights of the Belgian Treasury in such situations.

Moreover, the amount of the guarantee is to be determined by the local judge, who has to give the opportunity to the inheritors to submit their observations (Article 94 of the Belgian inheritance tax law). This constitutes a guarantee for the defence of the rights of those relatives. Moreover, the tax authorities are authorised to dispense from this requirement.

With regard to the inheritance of deceased persons whose families are resident in Belgium, it has to be observed that the authorities can take other protective measures in order to ensure the payment of the inheritance taxes. They can raise a mortgage on the whole Belgian patrimony of those resident inheritors or take protective measures towards other persons contracting with these inheritors, in accordance with Belgian law.

(1) OJ L 73, 19.3.1976.