What happens if the inheritance tax is not paid on time?
March 18, 2022 | 50,00 EUR | answered by Alwin Widmann
Dear tax advisor,
My name is Martina Netz and I am facing a complex situation related to inheritance tax. My mother recently passed away and left me an inheritance which I now have to manage. My father passed away several years ago, so I am the sole heir.
After accepting the inheritance, I realized that I need to be informed about inheritance tax and also pay it. Unfortunately, I have no knowledge on this topic and I am unsure of how to proceed. I am worried that I might make mistakes or not meet the deadlines for paying the inheritance tax.
Therefore, my question is: What happens if the inheritance tax is not paid on time? What consequences could I face in this case and what options do I have to avoid this? I want to make sure that I follow all necessary steps correctly and avoid any legal issues.
Thank you in advance for your help and support.
Yours sincerely,
Martina Netz
Dear Ms. Netz,
First and foremost, I would like to express my sincere condolences for the loss of your mother. It is understandable that you must also address legal questions regarding inheritance and inheritance tax during this difficult time. I am happy to answer your question in detail and hope that I can help you with it.
Inheritance tax is a tax levied on the acquisition of assets through inheritance or gift. When you inherit, as the heir, you are obligated to pay the inheritance tax to the tax office. The amount of tax depends on the value of the inheritance and your relationship to the deceased. In your case as the daughter of your deceased mother, you fall into tax class I, which means you have a tax-free allowance of 400,000 euros.
If the inheritance tax is not paid on time, it can lead to various consequences. The tax office usually sets a deadline for payment, which you must adhere to. If you miss the deadline, default interest may accrue. Currently, this is 0.5% per month and can accumulate to a significant amount over time. Additionally, the tax office may issue reminders and enforcement measures to collect the outstanding tax. In the worst case, fines or even enforcement proceedings may be imposed.
To avoid these consequences, it is important that you pay the inheritance tax on time and correctly. If you are unsure about the amount of tax or the documents you need to submit, I strongly recommend seeking assistance from a tax advisor. An experienced professional can assist you in calculating the tax, filling out the necessary forms, and ensuring that all deadlines are met.
In conclusion, it is important to pay the inheritance tax on time to avoid potential consequences. If you are unsure about how to proceed, do not hesitate to seek professional help. I am available to support you in this matter and assist you with any questions regarding inheritance tax.
Best regards,
Alwin Widmann
Tax Advisor
