Regional taxes as a policy instrument

Output Track A2

Working papers A2a

>HOEBEECK, A. & SMOLDERS, C., Impact van de woonfiscaliteit op de eigendomsverwerving in Vlaanderen, Hogeschool Gent, februari 2013, 54 pp. (.pdf)

>SMOLDERS, C., BURSSENS, J., De kapitalisatie van het klein beschrijf in de woningprijzen: een hedonische analyse, Hogeschool Gent, maart 2013, 14pp. (.pdf)

> HOEBEECK, A., SMOLDERS, C., De woonbonus: een stimulans tot eigenaarschap of niet? Analyse van de resultaten van een survey bij 1190 bezoekers van de BIS-beurs, UGent, januari 2014, 24 pp. (.pdf)


> HOEBEECK, A., SMOLDERS, C., The impact of the Interest and Capital Mortgage Deduction on Homeownership in Belgium: A Difference-in -Difference Approach, UGent, 2014, 29 pp.
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Track A2a

a. Regional taxes, housing and sustainable growth

Research theme

This track focuses on the effects of regional taxes on home ownership. This project wants to answer the following questions:
• Can taxes induce ownership?
• Which taxes are suited best to support ownership?
• How do citizens react to housing taxes?
• Are housing taxes an instrument to increase the mobility of the elder population?
• What was the effect of the tax reform that introduced the so called "Woonbonus" (mortgage interest deductibility in the personal income tax) in the personal income tax on homeownership?
• What were the effects of the "leegstandsheffing"?
• What were the effects of the decrease of the "OOV" for energy efficient houses?

Promotors: C. Smolders & S. Goeminne
Scientific personnel: Annelies Hoebeeck

Track A2b

b. Inheritance tax reform

The term of this research track was extented till 31/12/2015.

Research theme

Sociological developments such as shifts in forms of cohabitation, but also legislative initiatives at the different involved policy levels creates the necessity to evaluate the legislation concerning the inheritance taxes at regulary intervals. Currently there is a shift in the understanding of "partner": in order to benefit from certain fiscal benefits factual cohabitation is sufficient, although the legislator while creating the related legislation premised an affective bond between the testator and the recipient. The legislator is aware that by domicile fraud heirs are charged in group 1 (straight line) even though they should be taxed as group 3 (sideline for persons which aren't related by blood or for which equivalent family ties can be established).

This project aims to suggest reforms which should result in a more neutral definition of the term "partner" and a clearer definition of the affective bond which is assumed for the inheritance taxes in straight line. In addition the research track also examines whether the current exemptions provided for the inheritance of the family house by the surviving partner, as wel as the division of the net-inheritance in the net-share in respectively the movables and real estate for the application of the rate in group 1 (the so called splitting), are able to be reformed in an 'abattement'.

The project has a fiscal judicial phase and a budgetary phase. The first phase of the track will in first instance reveal indicators of an affective bond, other than the time-bound indicators (s.a duty of care, duty of help, business rights like a lease or collective property). In the first phase the criteria used in neighbouring countries will also be analysed (see the Dutch duty of care). Furthermore the definition of the term "partner" will be examined as well as the possibilities to introduce 'abattements'.

The budgetary phase refers to the simulations of the budgetary effects which will be set up for the withheld prepostions made in accordance with the principal.

Promotor: N. Plets & B. Peeters
Scientific personnel: Kathleen De Troeyer