A little while ago, the Supreme Court issued an important ruling regarding the relationship between the improvement levy (the levy…

I would love to recommend a creative architect to transform 2 rooms into a housing unit in Pardes Hana

A little while ago, the Supreme Court issued an important ruling regarding the relationship between the improvement levy (the levy paid for the improvement of real estate due to the approval of a plan) and VAT. The link to the ruling in response.
As is well known, for the purpose of determining the total levy on the appraiser to determine the value of the land on the approval of the improvement plan and their value after the approval of the improvement plan. The improvement levy is half the difference.
The determination of the value of the real estate is usually made on the basis of comparative transactions - ie: the appraiser examines transactions made in similar real estate and deducts the value of the improved real estate in accordance with those transactions.
What if the comparison transactions include VAT? Should the appraiser include the VAT component in determining the value of the good land? For many years, appraisers used to include the VAT component, in accordance with a ruling by the Tel Aviv District Court regarding the compensation fund (although over the years this ruling has softened slightly).
The ruling of the Supreme Court from today stated that the appraiser's standard in the matter must be followed - that is, in a "business market" and a "mixed market" the VAT component must be deducted from the value in the comparison transactions (unless there are special circumstances specified in the standard).
This is a revolution ?.
I was honored to represent the Appellate Authority applicant, Atlondment Samond. We won supreme after three courts (decisive appraiser, appeals committee and district court) rejected our claims.
For Samond, this is a right to a refund of about NIS 17 million.
Thanks to the appraisers Michal Schimkevitz and Yoav Sheinkin, who have been with me all the way.

Link to the original post on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)

Related News Real Estate Entrepreneurs

Responses