In 2008, revenues from taxes on legacies and gifts amounted to 1.8 billion euro, i.e. more than 4 percent down on 2007. Inheritance tax revenues constitute only a fraction (1.3 percent) of total central government tax revenues.
Inheritance tax revenues
Revenues from inheritance tax depend on three factors: the number of persons leaving a huge sum of money, the rate at which administrative data are processed and changes in inheritance tax exemptions.
In 2009, the possibilities for exemption have been extended. Sports clubs and community centres can be declared exempt from inheritance tax, provided certain conditions are met. The current Inheritance Act, dating back to 1956, is in the process of being modernised. As a result of the modernisation, more people will be exempt and inheritance tax rates will be lower. Authorities will crack down on tax dodgers.