Legal problems in the taxation of industrial buildings with tax on real estate

Abstract

The article examines the problems of legal regulation of real estate tax on industrial buildings. Judicial practice in the field of real estate taxation is analyzed. The problem of ambiguity of the judicial position in resolving disputes in the field of real estate tax on industrial buildings is revealed. The possibility of using industrial buildings by individuals in their own production within the framework of business activities or the transfer of such buildings for rent is analyzed.

Meanwhile, despite the fact that these premises are actually used in production, the tax authorities from time to time deny the possibility of exempting them from taxation. The resolution of this dispute is left to the courts, but the courts decide both in favor of the taxpayer and in favor of the tax authority. The interpretation of the term "industrial buildings" for the purposes of real estate taxation is substantiated, given the existing case law.

It is emphasized that the term "industrial buildings" for the purposes of real estate taxation is interpreted ambiguously, which is a significant disadvantage in the taxation of real estate other than land. The authors substantiate that in order to fall under the characteristics of the object of real estate tax, the industrial building must clearly meet the following criteria: it should not be leased, leased, lent to other entities; be classified in the group "Industrial buildings and warehouses"; to be used during the reporting (tax) period as intended in economic activity.

It is concluded that the norms governing the taxation of real estate tax other than land are still quite conflicting norms of national tax law. The authors argue that the inconsistency of tax legislation, their contradictions undoubtedly reduce the effectiveness, and sometimes make it impossible to apply them, because the lack of a successful mechanism for implementing the rule may mean its actual non-application.

Proposals for legislative improvement of the category of industrial buildings for the purposes of real estate taxation are presented.