Doubling the minimum wage affected not only the rates of property tax and other taxes, particularly the tax on expensive cars. Moreover, if in previous years this tax is a not paid, to prove in court the illegality of his charges, now these cases will be much less. The lawyers have clarified the details of the payment of the transport tax on expensive cars in 2017, writes the UBR.
Unlike the estate tax, the transport tax is paid not for the past and for the current year. That is, the owners of expensive cars (worth more than UAH 1.2 million) not older than 2012 model year will receive the tax at the place of registration of the car until July 1, 2017, the notice about the need to pay 25 thousand UAH.
“Payers of transport tax are legal entities and individuals, including non-residents who have registered in Ukraine own cars since the release of which is less than 5 years (inclusive) and cost more than 1.2 million UAH”, — said the lawyer MG TAX Nikita Trubka.
In the current year changes the estimated average cost of a car for such a tax. So, if in 2016 it was 750 times the minimum wage (MW) in the current year, the threshold is halved to 375 minimum wages. Accordingly, on January 1 (for the calculation of the tax base is taken this date) MW in 2016 amounted to 1378 UAH and to pay the tax obligation were those whose car was more expensive 1,0335 million. In the 2017th, when you increase the RPMS up to 3200 UAH threshold amount increased to 1.2 million. That is, the lucky ones whose cars are, for example, 1,1 million UAH, and who paid the tax last year, to share with the state will not have to.
In the current year changes the estimated average market value of cars for tax purposes.
Estimate the average market value of machinery is carried out according to a method approved by the Cabinet of Ministers: given the make, model, year, engine type, cylinder capacity, type of fuel. On the website of the Ministry of economic development has a special calculator, which can calculate whether you will have to pay the tax.
By the same procedure from the entire array of registered machines will be selected those which are subject to taxation. Moreover, this technique does not always correspond to reality. For example, some car dealers recently put a promotional price on the car to fit the permissible limits of UAH 1.2 million. For example, if the price the price of 1.3 million, and put 1,1 million UAH, giving the client a discount. However, if you don’t prove to tax authorities that the car is worth so much, and not, as shown by calculations of the Ministry, the tax will have to pay anyway.
What will happen if you do not pay?
To pay the tax after receipt of the notification law has 60 calendar days. Those who have not invested in time, threatens financial sanctions — payment penalties. As explained by the lawyer, ICF Legal Service Oleg Kotlyar, for non-payers of vehicle tax stipulated penalties according to the General rule in accordance with article 129 of the Tax Code.
According to the new wording of this article, if on the SFS itself pays tax mandatory (not as a result of a tax audit), the penalty is imposed on the next working day after the limit of the period of payment of tax. Including for the period administrative and/or judicial appeal. The interest rate is 120% per annum of the NBU discount rate (currently 14%) effective on each calendar day of delay including the day of repayment. It turns out that a day of delay will cost the owner almost 12 UAH.
“Moreover, the resulting debt entitles the tax authorities to describe the property of a citizen in a Deposit that can not freely dispose of them until full repayment of the debt. The Dodgers eventually expects repayment of the tax debt at the expense of their property,” — said the lawyer law firm “Ilyashev and Partners” Galina Melnik.
Individuals so important to make sure that they received the decision notice will be paid in time and in the right details to change pretty often.
Interested in whether the addressee of the notification letter, the tax authorities will not. Just at some point will include a counter
If the payer of such notice is not received, the lawyers advised to make sure that it is not at the post office at the place of registration or place of residence. After all, to the solution was agreed, the tax authority is sufficient to return it to the registered or last known place of residence of the taxpayer without errors. Interested in whether the target letter, the tax authorities will not. Just at some point will include a meter.
According to lawyers, often notices are lost in the shipping process, there is a delay, and citizen travel documents are already with the new amounts (fines and penalties) which may also be lost.
“If you have got a solution after 1 July, this is the reason for appeal and a further cancellation of such decision in court”, — says Nikita Trubka.
Those who did not respond to sent him a tax notice, the decision will be sent to the tax claim and the assets of the owner are described in the tax lien.
The transport tax you can try to sue, appeal the decision of the SFS. “The current judicial practice are controversial. There is a position that changes to any elements of taxes and duties can not be made later than six months before the new fiscal period, otherwise it can be considered a violation of the principle of stability of tax legislation. So, the calculation of taxes, changes to which were adopted as usual “under the tree”, shall be implemented only after a year”, — said Torebka some car owners, who defended their right not to pay the tax in 2015.
Analyzing the practice of such cases in 2016-2017, we can conclude that to achieve cancellation of the transport tax is indeed possible. This is confirmed by several judicial decisions, including the Supreme administrative court (To/800/4917/17 To/800/10935/16 To/800/8077/16).
The change of the calculation basis before 2016 (instead of cars with an engine capacity over 3 years the luxury tax tied to the value of the car) is also allowed to sue their right not to pay.
According to the lawyer AF “Gramatsky and Partners” Vitaly Tymchuk, when changes in the procedure for calculation of the luxury tax 2017, the legislator repeated the mistakes of previous years. “Despite the absence of the APU in this category of disputes, it is likely that numerous case law on the abolition of the luxury tax in favor of taxpayers will be in 2017”, — said Tymchuk.
On the other hand, there is a court decision on refusal in cancellation of tax notification-decision. The reasoning of the courts in this case is simple: there is no solution of the LCP on the recognition of changes in the Tax code not corresponding to the Constitution. Accordingly, the decision of the tax authority complies with the current legislation. According to Oleg Kotlyar, courts are increasingly denied appeal of decision notices of tax inspections, recognizing the vehicles subject to taxation.
In a court dispute with the GFS, as noted by Nikita Torebka, the crucial role played by the legality of the actions of the tax authority in the calculation of the amount of liabilities and the timing of the notification of the taxpayer. Any non-compliance with legislation by tax authority may be grounds for cancellation of its decision. “But we must remember that in this case we are talking only about the cancellation of the notices of the tax authority, not abolish the tax for the payer,” says Trubka.
Since 2011, the law no longer requires a notarized power of attorney on the car. For the management of a foreign vehicle need only have license, registration and insurance. However, many are asking: who should pay the transport tax — the owner or the user of the machine (e.g., the tenant)?
Lawyers and tax specialists give a clear answer: the obligation to pay the transport tax remains on the beneficiary because the transfer of ownership of the vehicle in this case is not possible.
Therefore, those who sold a car by proxy (in order not to pay high taxes when you sell), you will either have properly to make a deal, or pay the transport tax.
The tax code does not provide for any exception for owners of expensive cars. That is, the tax will have to pay for all — students, disabled, pensioners, businessmen, public and charitable organizations, and so forth. So, to rewrite the transport to the poor and to receive benefits will not work.
In some cases it is possible to reduce the amount of tax liabilities if to prove that the vehicle was not subject to taxation for the entire tax period. So, if the car is purchased during the year, then you’ll need to pay for the months that remained until the end of the year from the moment of registration of ownership, dividing 25 thousand UAH by 12 and multiplying by the number of remaining months. Then, for the period from 1 January until the date of sale car tax will be accrued to the previous owner.
The tax will have to pay for all — students, disabled, pensioners, businessmen, public and charitable organizations, and so forth.
But here we should remember an important caveat: if the car was sold already after tax, he is not recalculated and is not refundable. In addition, if this year your car will be five years from the date of issue, the tax is paid only for the number of months preceding this date.
In the case where for some reason there is no proof of date of manufacture of the machine, the count five years from 1 January of the year specified in the certificate of registration of the vehicle. For example, the car was registered in 2012, then to pay for it in 2017 is not necessary.
Also no need to pay for the stolen car. The tax will take once the car is found. However, all these questions have many nuances, especially in terms of the amount and timing of payment that lawyers are advised to consult with specialists in each specific case.