Property Tax Appeals is a specialized legal service helping businesses and individuals challenge unfair or excessive property tax assessments imposed by tax authorities. In Georgia, property tax depends on the asset's market value or book value. It often happens that the Revenue Service disagrees with the value declared by the company or individual and conducts a reassessment, leading to significant tax increases and penalties. Also, disputes regarding land status are common, which directly impacts the tax rate. Incorrect tax administration can lead to deteriorated financial conditions for a business and the freezing of bank accounts. The involvement of a qualified tax lawyer allows you to professionally defend your position and reduce the tax burden through legal means.
What does the Property Tax Appeals service cover?
This service covers all stages of a tax dispute:
- Tax Act Analysis: Detailed study of the tax audit act, identifying legal and factual inaccuracies.
- Alternative Valuation: Organizing an independent audit valuation to determine the real market value of the property, used as evidence in the dispute.
- Drafting the Complaint: preparing a legally substantiated complaint for the Dispute Resolution Council of the Ministry of Finance.
- Representation: Defending the client's interests at the Revenue Service, Ministry of Finance, and subsequently in court (if necessary).
- Land Tax Correction: Correcting errors related to land category (agricultural vs. non-agricultural) with municipal bodies and tax authorities.
Common Scenarios and Needs
Disputes often arise in the following cases: Commercial Property Revaluation: The tax authority believes a building listed on the balance sheet at 1 million GEL is actually worth 3 million and demands tax on the difference. Incorrect Land Classification: An owner is charged non-agricultural land tax on a plot that is actually agricultural (which has a lower rate). Unfinished Construction: Disputes over whether an unfinished building should be taxed as a completed commercial object. Leased Property: Disputes regarding whether the lessee is liable for property tax if the lease is long-term.
Georgian Legislation and Regulations
Property tax issues are regulated by the Tax Code of Georgia. The Code defines property tax payers, rates (e.g., no more than 1% for legal entities), and exemption conditions. Dispute resolution procedures are also outlined in the Tax Code and the General Administrative Code of Georgia. It is important to know that during a tax dispute, the forced collection of the disputed amount is suspended, giving the business breathing room. At the litigation stage, the Administrative Procedure Code applies.
Step-by-Step Process
The process begins with receiving the tax demand. The lawyer assesses the prospects of appeal and deadlines (30 days to appeal). A complaint is prepared and submitted to the Revenue Service. If rejected, the case moves to the Dispute Resolution Council at the Ministry of Finance. If the Council also denies the complaint, the dispute continues in court. Concurrently, the lawyer works with independent appraisers to create a solid expert opinion on the property value, which is often the decisive argument.
Why Legal.ge?
Tax disputes require specific knowledge combining jurisprudence and finance. Legal.ge connects you with experienced tax lawyers who have a track record of successful disputes with the Revenue Service. Our specialists will help you not only write the complaint but also develop a strategy that minimizes your financial losses. Protect your business from excessive taxes with Legal.ge.
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