The Multiplicity of Connecting Factors in Civil Law COuntries about Donations and Inheritance - A Tax Perspective

This article analyzes the multiplicity of connecting factors in civil law countries in relation to gifts (donations) and inheritance from a tax perspective. The article commences with an analysis of gifts (donations) in civil law countries, together with the definition, legal framework, taxation and international aspects. The article then delves into the inheritance and gifts in civil law countries, including the definition, legal framework, taxation and international aspects. The article then delves into the connecting factors in civil law countries including tax residency, nationality and citizenship, location of assets, place of gift or inheritance, place of residence of donor or deceased. The impact of connecting factors on taxation is then discussed, including determining the applicable tax laws and double taxation and relief mechanisms. The OECD Model Convention on inheritance and gifts is then explored, including the scope of the model convention, eliminating double taxation, cross-border at a glance, inheritance tax applied in OECD, and the optimal inheritance tax rate. The article then provides an overview of the jurisprudence of the Courts of Justice of the European Union (CJEU) in relation to inheritance tax and gift tax. Finally, the article concludes with a summary of the key findings and the implications for tax planning in succession.