Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317006 
Authors: 
Year of Publication: 
2025
Series/Report no.: 
ETLA Report No. 157
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract (Translated): 
This report examines the behavioral effects of inheritance, estate and gift taxes. It also provides an overview of inheritance, estate and gift tax practices in other countries, as well as the reasons that led to the abolition of inheritance taxes in Sweden and Norway. Economic literature acknowledges various behavioral responses to inheritance, estate and gift taxes from both the bequeather and the heir, with wealthier individuals demonstrating greater sensitivity to such taxes. These responses encompass both real behavioral changes (such as migration) and tax avoidance strategies. These behavioral distortions affect both the efficiency and revenue-raising potential of inheritance, estate and gift taxes. Among OECD countries, a significant number impose inheritance, estate and gift taxes, while others do not, some have abolished them, and a few have never implemented such taxes. Among Nordic countries, Sweden and Norway have abolished these taxes, citing several reasons: they were seen as obstacles to the intergenerational transfer of family businesses, their administrative burden was deemed high, and compared to the administrative burden the revenues collected were relatively low. Additionally, the taxes facilitated tax planning opportunities and were perceived as inequitable.
Subjects: 
Inheritance
estate and gift tax
Behavioral responses
Tax elasticities
Tax avoidance
JEL: 
D9
H24
H26
H3
Document Type: 
Research Report

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