The 1928 draft convention for the prevention of double taxation in the special matter of succession duties. The conventions concluded by Romania

• Author: Silviu-Dorin Schiopu
• Position: Transilvania University of Brasov
• Pages: 167-172

Bulletin of the Transilvania University of Braşov

Series VII: Social Sciences • Law • Vol. 10 (59) No. 2 - 2017

THE 1928 DRAFT CONVENTION FOR THE

PREVENTION OF DOUBLE TAXATION IN

THE SPECIAL MATTER OF SUCCESSION

DUTIES. THE CONVENTIONS

CONCLUDED BY ROMANIA

Silviu-Dorin ŞCHIOPU1

Abstract: Romania has concluded two conventions for the avoidance of

double taxation on estate and inheritance tax during the interwar period.

Since one of these conventions is still in force and the difficulties caused by

the burdens resulting from inheritance tax in cross-border situations are of

great importance to the proper functioning of the EU and of the internal

market, this short article aims to compare the solutions proposed by the 1928

Draft Convention for the Prevention of Double Taxation in the Special

Matter of Succession Duties and the conventions concluded by Romania in

1932 and 1934, considering that at some point our legislator may want to

reintroduce an inheritance tax.

Key words: double taxation, inheritance taxes, death duties, succession

duties, draft tax convention, League of Nations.

1. Introduction

According to recital (9) of Regulation (EU) no 650/2012 on jurisdiction, applicable

law, recognition and enforcement of decisions and acceptance and enforcement of

authentic instruments in matters of succession and on the creation of a European

Certificate of Succession, the scope of the regulation should include all civil-law aspects

of succession to the estate of a deceased person, namely all forms of transfer of assets,

rights and obligations by reason of death. However, certain civil-law aspects were

deliberately left out from the enforcement area of this regulation (Nicolae, 2015a, p. 62-

68) and also, according to recital (10), the regulation does not apply to revenue matters.

Therefore it’s for national law to determine how taxes and other liabilities of a public-law

nature are calculated and paid, whether these are taxes payable by the deceased at the

time of death or any type of succession-related tax to be paid by the estate or the

beneficiaries. As such, double taxation of inheritances is not currently being resolved

comprehensively on the basis of Union law.

The European Commission recommended to the member states to continue working on

possible ways to improve the cooperation of tax authorities in order to assist taxpayers

1 Transilvania University of Braşov, dorinxschiopu@gmail.com