Has the Valencian Tax Office reviewed the value you declared on your purchase deed and asked you to pay an extra transfer tax? DO NOT PAY, the High Court of the Valencian Community has confirmed that the revaluation method used is not valid.
Good news for taxpayers, on the 1st of October 2013, the highly important Court Order number 1336/2013 has been granted by the Contentious-Administrative Section of the High Court of the Valencian Community ( TSJ).
This court order is considered relevant, as it states that the method used by the Tax Office to review and re-evaluate the prices and values declared on the notarial Deeds of purchase, gift and inheritance IS NOT VALID, as it is based on the properties cadastral details and on general values approved and issued by the same taxman for tax purposes.
The TSJ states that these values could be used as a guidance, but the valuations must be done individually, noting that the tax inspectors do not visit or check the properties one by one, and also the cadastral description sometimes does not match with the reality, etc.
This court order comes at a time when the Tax Authorities ( Oficina Liquidadoras) are increasing the revision and inspection of declared values and prices on public deeds, by means of these revaluation processes.
Therefore, if you receive a letter from CONSELLERÍA stating that the value you declared on your purchase, gift or inheritance has been reviewed, and now is higher and therefore you need to pay extra transfer tax, gift or inheritance tax, before paying it let us know. If the revaluation has the same defects mentioned on the court order 1336/2013 above mentioned, our law firm will assist you to contest it.
The information provided on this article is not intended to be legal advice, but merely conveys general information related to legal issues.
Written by a CBBA member
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