Legal Section held by Capital Legal Services together with Russian Council of Shopping Centers
Major real estate players gathered on July 3, 2015 in the Kuntsevo Plaza Multifunctional Complex (19 Yartsevskaya Street, Moscow) for the RCSC Legal Section dedicated to current challenges in disputing cadastral value of real estate.
Igor Gorokhov, Senior Associate of Capital Legal Services, was invited as Lead Legal Expert and moderator of the Section.
During the Legal Section, Igor spoke on recent changes in the law, shared unique experience in appraisal projects and offered options for resolving issues arising when disputing the real estate cadastral value.
In accordance with Federal Law No.284-FZ dated 04.10.2014, starting from January 1, 2015, owners of commercial real estate in most Russian regions must pay a property tax based on the cadastral value.
It should be highlighted that the cadastral value is established in the course of a state cadastral appraisal, as provided by laws on appraisal activities, and, in essence, is equal to the market value as of the date of the appraisal. Practice shows that appraisal on the basis of the market value leads to a high tax burden on commercial real estate owners.
Igor Gorokhov noted that the property’s state-assigned value could be disputed in several ways: through court or though the Dispute Resolution Committee. He specified that legal entities must first appeal to the Committee as part of pretrial dispute resolution, while individuals and individual entrepreneurs can file directly with the court.
He also noted that there is an option for a legal entity to file directly with the court when an owner hands over or leases out real estate to an individual entrepreneur.
Igor Gorokhov stressed that tax payments on property could be substantially reduced only with the professional assistance of appraisers and proper legal support in disputing an overstated cadastral value.
As practice shows, a lawyer and an appraiser working together as a team is a recipe for success because 90% of failures to dispute the cadastral value are based on non-compliance of reports with federal standards.
Detailed information on trends in the field of cadastral value and other real estate and construction issues can be found in recent reviews of legislation by Igor Gorokhov, Senior Associate of Capital Legal Services, here.
The Russian Council of Shopping Centers (RSCS) is a professional association of developers, architects, marketing specialists, managers, shopping center owners and operators of retail, public food catering and services. The Council was established in June 2002.
The mission of the RCSC is to aid in the formation, promotion and improvement of shopping centers on the Russian market.
The RCSC pursues a number of objectives such as centering the professional community, making it more transparent, sharing the best practice experience, promoting professional development and improving quality of projects.