BackThe jurisprudence of the Supreme Court establishes that, in order to challenge the economic valuation made by the taxpayer in his tax return, the Administration must substantiate and explain the reasons that justify its discrepancy with respect to the declared value, which the law presumes to be true when referring to the price of the transferable legal business that determines the tax, as established in Article 108.4 of the General Tax Law.
In this context, the application of modules based on the cadastral value to determine the real value of real estate does not, by itself, provide an accurate and specific valuation of the real value of the property. The relationship between the cadastral value and the real value of the property is general and does not allow for an individualized estimate, which is a significant limitation in the determination of the tax.
In the particular case, the Regional Government of Extremadura seriously breached its obligation to value the property transferred in a sale and purchase in a singular and specific manner in its liquidation, which was done more than a year after the Supreme Court issued rulings that clearly established the importance of an adequate and complementary valuation of the method of article 57.1.b) of the General Tax Law, which is inadequate on its own to determine the real value of the property.
The Supreme Court also emphasizes that the Administration cannot automatically presume that the value declared in the public deed is erroneous, and that it does not enjoy a rebuttable presumption that the actual value coincides with the value established in an abstract manner in regulatory norms.
Likewise, it is emphasized that the Administration’s manifest failure to carry out an adequate and singular valuation of the real estate, which should complement the application of the cadastral value multiplier coefficient, constitutes a material infringement by not determining the real value, and not a simple formal defect that justifies the retroaction of the proceedings. The latter option would only be given if the existence of merely formal infringements that cause the taxpayer no defense and that have been alleged by the taxpayer during the review procedure were proven.
In summary, the ruling highlights the importance of carrying out an adequate and singular valuation of the real estate to determine its real value, especially when the taxable base is legally linked to such value, and stresses that the mere application of modules based on the cadastral value is not sufficient to achieve an accurate and individualized valuation of the real value of the real estate.
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