Tax & Legal

In a most recent judgment, the Supreme Tax Court decided that it is not possible to demonstrate that a co-ownership in a plot of land valued at the proven lower fair market value is worth less than the calculated share of the fair market value of the entire plot.

When purchasing a property for which the buyer and seller have agreed to split the real estate transfer tax equally the tax office requires a verifiable justification when claiming the full amount from the buyer. In its decision the Supreme Tax Court also discussed the question as to whether and when an so called “single (uniform) chargeable transfer” may be assumed.

A property developer acted free of charge for the local authority in an effort to increase the sales value of his property. His input tax was not deductible, even in the light of his expectation of ultimate benefit.