Wednesday , November 25 2020

The tax authorities can adjust the price of a real estate sale upwards



If it believes that the price of a real estate sale has been underestimated, the tax authority has the right to claim that both parties pay higher taxes for that sale.

The price paid for the purchase or sale of real estate can be "remedied" by the tax authorities, whether fraud has occurred, which may cause both parties to pay higher taxes. The management is not held by the price agreed by the buyer and seller, the court of cassation said in a decision issued on February 20 last year. In principle, taxes and charges related to the price expressed in the act are reminiscent of the judges, but as in any opinion, the tax authorities may decide on a correction if that price appears insufficient in view of the market.

The correction may have a significant cost given the number of taxes on the property sale. In fact, the buyer pays the "notary fee", that is, essentially the transfer fee, while the seller may be subject to various taxes such as the tax on possible capital gains, to the CSG on that gain or, if necessary, multiple taxes accumulated on land that have become constructable.

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In theory, the stated price should represent the market price, as the two speakers' "meeting test", according to the judges. The seller gives the price that satisfies him for which he assesses his property and the buyer accepts at the price he is willing to pay. However, anyone may have an interest in minimizing the official price, and the administration has the power to control the actions that serve as a basis for establishing taxes, whether it is remunerated as a sale, free as a gift or inheritance, or a simple one. statement as the IFI.

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It is a question of verifying that the act clearly mentions the market value of the building, that is, the price that could be achieved on that date by way of the supply and demand of the market. real. The management must, in support of its point of view, provide "comparative terms", that is, prices reported by recent comparable changes in the same sector. On June 27, 2018, the Treasury reduced the obligations of the tax liability in this respect and explained that it was a matter of comparing goods that are globally similar and no longer identical or "substantially similar" goods.


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