3.1.3.1 Introduction

The application of discriminatory provisions is the third important problem of cross-border inheritances and donations. States tend to justify the application of less favourable provisions to cross-border inheritances and donations due to their cross-border element that differentiates them from the purely domestic ones. Such a cross-border element is often the deceased’s or beneficiary’s foreign nationality or residence and the foreign location of the inherited or donated assets or a combination of these elements. In the next section, I provide several examples of discriminatory death tax and gift tax provisions.