The taxpayer is obliged to pay tax on the market value of real estate in the event of errors in the determination of the state cadastral value, which led to an underestimation of the value of the object.

Judicial Board on economic disputes of the Supreme Court expressed its position in the case № A40-232515/2017. In the dispute the cadastral value of the building, very low at first, was recognized as unreliable by the Rosreestr Commission at the request of the Department of state property of Moscow. Commercial organization insisted on the payment of property tax for the period prior to the increase in the cadastral value on the basis of original, low value of the property.  


Comparing the originally determined cadastral value and the corrected cadastral value, the Supreme Court concludes that the difference is multiple and that such an underestimation of the cadastral value does not fit within a reasonable range of possible values, which leads to the conclusion that the earlier cadastral valuation was obviously incorrect, which could not have been unknown to the taxpayer, who is a valid commercial organization. 


The case was sent for a new consideration, the court recommended to determine the cadastral value for tax purposes for the disputed period by examination. 


Case reference: http://kad.arbitr.ru/Card/6e27630d-df03-4b42-a5e6-1f6c33de4f27 

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