Germany inheritance tax collections fall short of assessed totals

Economist Julia Jirmann has challenged recent reports regarding German inheritance tax revenues. While the Federal Statistical Office reported a record €21.4 billion in assessed inheritance taxes, Jirmann notes that the actual amount collected was only €15 billion.

This discrepancy of over 25 percent is attributed to significant tax exemptions granted to the ultra-wealthy. Under current regulations, heirs receiving assets exceeding €26 million can receive exemptions for up to 100 percent of the due tax.

Jirmann also highlighted that a large portion of the reported increase was driven by a single case: the death of billionaire Heinz Hermann Thiele, owner of Knorr-Bremse, which accounted for nearly €4 billion in assessed taxes.