3.1.2 Double or multiple non-taxation

Double or multiple non-taxation is the second important problem of cross-border death and gift taxation and, in my view, is attributable to various reasons. First, the national death and gift tax laws vary significantly from state to state and those differences can often give rise to double or multiple non-taxation of a cross-border inheritance and donation. I call this situation “jurisdictional double or multiple non-taxation” (section 3.1.2.1). Moreover, double or multiple non-taxation can arise in certain situations where the state of the personal nexus provides a unilateral double taxation relief by means of an exemption (section 3.1.2.2). In addition, double or multiple non-taxation can arise in situations where the state of the objective nexus abstains from levying taxes (for the avoidance of double taxation) while the state of the personal nexus does not levy death taxes and taxes on gifts in general or provides for an allowance/exemption/deduction/credit (section 3.1.2.3). Finally, double or multiple non-taxation can arise in the case of tax abuse (section 3.1.2.4).