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V1128-22 20 May 2022 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

Municipalities must follow value verification procedures if they disagree with declared values

A query was raised regarding whether a Municipality must apply the value verification procedure under the General Tax Law and allow for representations if it deems the value of a transfer in the IIVTNU to be incorrect. The DGT ruled that it must follow the procedure prescribed by law.

The question raised

If the city council verifies the value on the grounds that the one appearing in the deed is incorrect, must the city council follow the value verification procedure set out in Article 57 of the General Tax Law and provide a period for allegations?

The DGT's ruling

If the local Administration considers that the value stated in the title is not the true value, it may initiate a tax audit procedure. To this end, it must utilize the means provided in Article 57 of the General Tax Law (LGT) and follow the procedure set forth in Article 134 of the LGT. If the determined value differs from the declared value, the Administration must notify a proposal for regularization, granting a period for the submission of allegations.

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