Date: 12/23/2024
The Supreme Court (SC) has confirmed that the Tax Agency has the power to adjust the value of a property declared by taxpayers for the payment of the Tax on Property Transfers and Documented Legal Acts (ITP and AJD) if the official appraisal is higher than the purchase price.
The ruling, issued on December 4 and drafted by Judge María de la Esperanza Córdoba, analyzes the case of a company that acquired a shopping center for 19.8 million euros, the amount on which the corresponding tax was calculated. However, the official appraisal of the property amounted to 21.8 million euros, which is why the Tax Agency claimed payment adjusted to the appraised value.
The Supreme Court has validated the actions of the Treasury, recalling that article 57 of the General Tax Law grants the Administration the power to verify the values ​​of the assets subject to taxation through the appraisal value.
The company argued that the Treasury had not adequately justified the opening of the verification procedure. However, the ruling clarifies that the significant difference between the declared value and the appraisal value constitutes sufficient justification to initiate said verification.
The Supreme Court ruling also clarifies that the Treasury is not obliged to demonstrate evidence of fraud or concealment to initiate this procedure. In addition, although the taxpayer cannot directly appeal the tax assessment, he does have the right to request a contradictory expert appraisal to defend his position.
With this resolution, the Supreme Court unifies criteria and eliminates the existing discrepancies between different courts regarding the justification necessary for the Treasury to adjust the tax value of a property based on its official appraisal.
This ruling sets an important precedent in tax matters, clarifying the scope of action of the Tax Agency in the tax assessment of properties and offering greater legal certainty for both the Administration and taxpayers.