In Moscow, more and more properties are having their cadastral value recalculated during the year. The main reason for a recalculation of this kind, outside a state cadastral valuation, is a change in the characteristics of the property, for example its area, or the permitted use of a land plot. When such a change takes place, Rosreestr sends the information to the budgetary institution of the constituent entity, which recalculates the cadastral value.
In the past, recalculations of this kind sometimes raised questions of whether they were lawful and justified. The Moscow Government has now added a "know-how" of its own. The Centre for Tax Revenues has entered the picture, the body responsible for the taxation of real estate. Unfortunately, its work attracts a good deal of criticism. We have already written, for example, about the many absurd errors in the annual drawing up of the list of properties taxed on cadastral value. That list is precisely their work.
The Centre has now found a new way to "show that it is effective". It analyses the cadastral value of properties and initiates an increase. If it considers that, in the state cadastral valuation, a property was placed in the wrong valuation group, it writes to the budgetary institution, which moves the property into another group. The result is a higher cadastral value, and a higher tax, for the owner.
This is another body of the Moscow Government that has never heard of the legitimate and good-faith expectations of taxpayers.
What owners need to know
Bodies such as the Centre for Tax Revenues exist in almost every constituent entity of the Russian Federation, and their aim does not always coincide with the interests of business. Owners of real estate need to stay alert, to watch for changes in the characteristics of their properties, and to check whether a recalculation of cadastral value is justified. Remember: protecting your interests is not only a right. It is a necessity.
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