Registration Tax and Real Estate Valuation: Commentary on Order No. 22804 of 2024
The recent Order No. 22804 of August 13, 2024, issued by the Court of Cassation, offers an important reflection on the correct application of the rules concerning registration tax in the event of property transfers. In particular, the decision emphasizes that the notice of assessment for additional tax cannot be based solely on the quotations from the Observatory of the Real Estate Market (OMI), highlighting the need for adequate justification and a more detailed assessment of the market value of the properties.
The Case: Declaration of Additional Tax
In the context of the dispute between F. (LIBERTI CRISTINA) and A., the Court addressed the issue of the sufficiency of the justification regarding the rectification of the property's value. It emerged that the use of OMI quotations, if lacking further supporting elements, is not capable of adequately indicating the market value of an asset. The Court emphasized that the value of a property can vary based on several factors, including:
- Location
- Surface area
- Position within the urban planning instrument
- State of the urbanization works
The Court's Ruling and Its Implications
Sufficiency - Exclusion - Reasons. In matters of registration tax on property transfers, the notice of assessment for additional tax due is not sufficiently justified if it has rectified the property's value by exclusively referring to OMI quotations, because these, in the absence of further elements, do not adequately indicate the market value of the asset - which can vary based on multiple parameters, such as location, surface area, position within the urban planning instrument, and the state of the urbanization works - and constitute an element lacking the requirements of precision and gravity.
This ruling highlights the need for robust justification by the Tax Administration when proceeding with the rectification of property values for registration tax purposes. The Court, also referencing regulations such as Presidential Decree No. 131 of 26/04/1986 and the Civil Code, emphasized that valuations must be supported by concrete and specific data, not limited to general references like OMI quotations.
Conclusions
In conclusion, Order No. 22804 of 2024 represents an important step forward in the protection of taxpayers, requiring that tax valuations be carried out with rigor and precision. It is essential that the competent authorities provide clear and detailed justifications for their decisions, avoiding superficial approaches that could infringe upon citizens' rights. Real estate operators and legal professionals must pay attention to these indications to ensure that any property transfer occurs in a context of correctness and transparency.
