Reich Flight Tax

The flight tax was on December 8, 1931 introduced the " Fourth [ emergency ] Decree of the Reich President for the assurance of Economy and Finance and the protection of inner peace " ( Reich Law Gazette 1931 I, pp. 699-745 ) to stem capital flight. The flight tax was at the task of the domestic residence payable if the assets 200,000 Reichsmarks (RM ) exceeded or the annual income amounted to more than 20,000 RM. The tax rate was set at 25 percent.

In the era of National Socialism, the bases of Reichsfluchtsteuer have changed significantly. You also no longer served primarily to hold the original purpose of a wealthy citizen of the Reich moved abroad. Rather was the emigration of Jewish citizens - quite desirable and was forced by the persecution of the Jews - even after the war began in 1939. It was not until 23 October 1941, the emigration was prohibited by an order of Heinrich Himmler. The flight tax has been exploited since 1933 for the purpose of plundering the Jews and thus got the "function of a partial expropriation " of the Jewish emigrants who had decided by the pressure of persecution to flee from their homeland.

Historical context

The 1929 emanating from the United States of America world economic crisis led to loan facilities of international donors. Germany in 1931 24 billion RM foreign debt and had to pay back only the first half of about 5.25 billion RM in foreign exchange. The German government restricted the free movement of capital and resorted to currency restrictions. In addition, she was forced into a drastic austerity and increased the income tax. She solved with these measures from a strong capital flight abroad. Wealthy emigrants who threatened to fail as a taxpayer, should be held by the Reichsfluchtsteuer of their projects.

The idea to prove the tax saving of residence abroad as an " unpatriotic desertion " with a levy was not new. In 1918, had issued a "law against tax evasion " ( Reich Law Gazette I, p 951) the German government; this was abolished in 1925.

Decree of December 8, 1931

The flight tax was just one of many other measures that have been regulated by law in the " Fourth Decree of the Reich President for the assurance of Economy and Finance and the protection of inner peace ": it was also about price and interest rate cuts, housing, social security, labor provisions, household security and wage cuts and uniform ban and measures against misuse of weapons.

As a temporary "measure to capital flight and tax evasion ", persons who were on March 31, 1929 citizens of the German Reich and had moved from that date until December 31, 1932 their residence abroad, or would relocate, pay a flight tax, provided they reached a chargeable assets of more than 200,000 Reichsmarks or an annual income of about 20,000 RM. The tax rate was set at 25 % of the total assets or the income and also be levied retroactively.

Taxable persons who tried to escape this levy were not threatened as a punishment prison less than three months and fined an unlimited amount. They should be specifically advertised with an article published in Reichsanzeiger "Tax Information " on the arrest and arrested during a visit have stay in Germany. All your domestic assets were seized.

The law was due to expire at the end of 1932, but still 1932 ( Reich Law Gazette I, p 572) has been extended until 31 December 1934.

1933-1945

The existing regulation for flight tax has changed considerably with the "Law on amending the legislation on the flight tax " on May 18, 1934 ( Reich Law Gazette 1934 I, pp. 392-393 ), extended in the time of National Socialism six times and the last time on 9 December 1942 ( Reich Law Gazette I, p 682 ) extrapolated indefinitely.

A serious change was that in 1934 the said asset threshold of previously 200,000 Reichsmarks was reduced to now 50,000 Reichsmarks. In addition, the bases were changed to the disadvantage of emigrants. Thus, a much larger group of people from the compulsory levy was affected. The flight tax, originally aimed at those who relocated to reduce voluntarily and at their own tax burden abroad, now was mostly the Jews from legitimate fear of violence and imprisonment in concentration camps and impairment of their employment ( up to the prohibition of employment ) their home country wanted to leave or had to. See also Anti-Semitism ( 1945 ) # National Socialism.

Before 1933, the tax revenue from the flight tax was of little significance; it was only just under 1 million Reichsmark for the second financial year. With the beginning of the movement initiated by terrorist escape the Reichsfluchtsteuer a significant part in the empire budget was. 1933, the volume rose to 17 million Reichsmarks in 1938, reaching a peak with 342 million Reichsmarks. Overall, the Nazi state drew by the flight control a 941 million Reichsmarks. According to estimates, this sum comes to about 90 % of racially persecuted emigrants.

Implementation

A "notice " of the tax office, with the payment of the flight tax and other taxes was confirmed was the prerequisite for legal permanent departure. In a departure intention suspected the foreign exchange positions of the tax starting in 1934 could require a security deposit in the amount of estimated flight tax. A close-knit network was to discover intention of fleeing to: The Imperial Post reported Redirecting of Jews, carriers should report parades, show Notaries Real Estate Sales Report and life insurance requested repurchases. With the Gestapo mail and telephone monitoring individual suspects were agreed.

With the payment of the flight tax was not connected to the other assets and belongings could be taken into exile. The exemption limit for foreign exchange in 1934 was fixed at 10 marks. Banking and securities balances were transferred to blocked accounts and could only be transferred to large discounts abroad. For household goods that had been purchased after January 1, 1933 had to be paid a so-called Dego - charge on the German Gold Discount Bank.

Repeal

The rules on the flight tax were repealed by the "Law for the repeal of obsolete tax regulations " of 23 July 1953 ( BStBl. 1953 I, p 276). A controversial in the Cabinet replacement wise bill against capital flight was not introduced in the Bundestag since all measures that could be taken to prevent the flight of capital, No. 53 were the British and American military government, other regulations and included in numerous specific rules on foreign exchange already in the law.

In 1973, the Foreign Tax Act was introduced, which is designed to prevent or impede the shift of income or wealth in foreign countries and the resulting reduction of the domestic tax revenue.

Refund

The decisive for the Western occupation zones Military Government Law No. 59 of 1947 in particular Article 19, that the flight tax must be refunded to the extent that they could be attributed to emigration due to persecution. The Federal Indemnification Law ( BEG, version of 18 September 1953) saw in § 21 for it before ceilings and unfavorable conversion formulas. In BEG of 1956/1957, this limitation in § 59 was repealed and refunded the flight tax as well as the Jewish capital levy.