The challenge of the reference value

Abstract

The establishment of a new concept «reference value» (hereinafter «RV») in our Tax legislation entails relevant changes. On the one hand, it modifies the rules of quantification of the IGT (Inheritance and Gift Tax) and the TT (Transfer Tax), and establishes that the taxable base of the properties will be the RV determined by the Administration (and not the real value of the property); and, on the other hand, it sets severe limitations to the right to challenge that new RV, which may be incompatible with the requirements derived from the principles of legal certainty and economic capacity.