3.1.1.4 Different types of taxes

As noted in section 2.1, there are different types of death taxes and taxes on gifts. Therefore, not all states levy the same type of death tax and tax on gifts. For example, one state may levy an inheritance tax and the other state may levy a mortis causa income tax or capital gains tax on the cross-border inheritance. As a result, the cross-border inheritance is taxed twice by two different states and with two different types of taxes. In the same vein, one state may levy a gift tax on a cross-border donation and the other an income tax on gifts. It is noted that in such a case, both states qualify the transfer of property as a donation. However, they subject it to two different types of taxes.

Although one could argue that the imposition of different types of taxes on the cross-border inheritance or donation is not classified per se as juridical double taxation, the mere reduction of the value of the mortis causa or inter vivos transferred property and the multiplication of the tax burden should not be neglected.