What you need to know about the process of counter-valuations by appraisal experts
Speaking about counter-valuations by appraisal experts is defining a process to which all taxpayers are entitled to and the same may begin when a taxpayer does not agree with the valuation of its assets and real property made by the tax Administration.
If this is your case as a taxpayer for instance when you sell or buy a house in Spain, specifically at La Axarquía, in municipalities such as Algarrobo, Benajarafe Competa or Torre del Mar, you can contact us for accounting or solicitor services related to counter-valuations by appraisal experts. We offer more details about it in this article.
To move forward with a process of counter-valuation by appraisal experts the first step would be to present a request, which in turn shall suspend the execution of any liquidation and initiate the process to present a claim against the same.
Immediately thereafter, and within the corresponding timeframes, the valuation of an appraisal expert from the tax Administration shall be required (in case such valuation had not taken place).
Once the process is completed, the tax Administration shall notify the results of its valuation, granting a period of 10 days for the taxpayer to hire another appraisal expert to make the corresponding calculations for the valuation. Its professional fess shall be paid by the taxpayer.
If after the period provided by the tax Administration the individual has not made progress with this step, the taxpayer is implying that he/she “desists from exercising its right to move forward with the counter-valuation by appraisal expert, and thus, the process is finalized.”
That being the case, the initial value shall be taken as basis, and a new process of counter-valuation by appraisal expert shall no longer proceed.
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On the contrary, if the process moves forward there are several specifications to be made, which include:
If there is a difference between the value established by the appraisal expert of the tax Administration and the value stipulated by the taxpayer’s appraisal expert that is “equal or less than 120,000 Euro and at 10% of said valuation, the latter works as the basis for the liquidation.”
If the difference turns out to be higher, a third appraisal expert must be appointed and under these circumstances, the valuation of the third appraisal expert shall be taken as value of the assets, considering the limits of the value declared by the taxpayer and the value initially proven by the tax Administration.
The expenses corresponding to this third appraisal expert shall be paid by the taxpayer if the valuation is higher than 20% of the value declared. If the difference is lower, the professional fees shall be paid by the tax Administration. This decision shall be made based on Article 135 of the General Taxation Law 58/2003 of December 17.
The process shall end when:
The valuation performed by the third appraisal expert is presented before the tax Administration.
If the deposit corresponding to the professional fees is not made by any of the parties. This shall imply that the liquidation awarded is considered, based on the valuation performed by the appraisal expert of the other party (despite the difference between both valuations). Neither the counter-valuation by appraisal expert shall be presented again, nor a new value verification procedure by the tax Administration shall be made “on the same assets or rights.”
If the taxpayer desists.
In the event of expiration (in this situation the liquidation shall have the base proven value of the initial liquidation, and a new counter-valuation by appraisal expert shall not be presented).
If you are looking for an accountant or solicitor, you can contact us.
The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.
Author: Rosana Tejada
Biographical Info: Rosana Tejada Crespo is a tax advisor holding a Master’s Degree in International Taxation. She specialises in companies and freelancers, tax regulations concerning foreign employees (Beckham Law), non-resident tax, inheritance tax and Spanish income tax. She is one of the founders of Tejada Solicitors, which comprises a group of English speaking solicitors, economists and architects.