To further reduce social inequality in the country, President Rafael Correa has announced reforms to inheritance taxes, which will apply to inheritances valued at US$35,400 dollars. The tax would increase an increment up to 75% for sums above US$849,600. Correa says the measure will not affect the middle class or poor people, only the richest, and will prevent the inter-generational passing down of wealth that maintains the same families in power. It is expected that only 1 in 3,000 inheritances will be affected by this measure. Inheritances processed in fiscal paradises and international banks will be subject to the collection of the tax in order to prevent tax evasion. Liz Scherffius reports from Quito for teleSUR.
