If a donor dies within 180 days of the gift, the donated amounts must be added to the estate. That rule will be familiar to you. And you will find it logical that on the gift, the gift tax paid is offset against the inheritance tax due on the estate.
Numbers are probably the best way to understand the issue. The case involved a gift of €37,500 to a child of the later testator, for which the gift tax due is calculated as follows:
| Donation | € 37.500 |
| Less: gift tax exemption | € 5.141 |
| Taxable amount gift tax | € 32.359 |
| Gift tax 10% | € 3.235 |
The inheritance tax payable in connection with the donor's death (within 180 days) is calculated as follows:
| Heritage | € 20.167 |
| At: donation within 180 days | € 37.500 |
| Total | € 57.667 |
| Less: inheritance tax exemption | € 19.868 |
| Taxable amount of inheritance tax | € 37.799 |
| Inheritance tax 10% | € 3.779 |
Of the inheritance tax due, the tax authorities “only” offset: (€37,500 / €57,667) * €3,779 = €2,458 (instead of the full gift tax amount of €3,235). So on balance, €3,779 -/- €2,458 = €1,321 in inheritance tax was due. And the total levy (gift and inheritance tax) came to €3,235 + €1,321 = €4,556.