The Court Jurisprudence in Cases Involving the Sale of Apartments via Individuals ~ U-Tax Blog

Wednesday, August 24, 2022

The Court Jurisprudence in Cases Involving the Sale of Apartments via Individuals

The resolution of the "Tax Chamber" of the Cassation Administrative Court of 23 May 2022 in case No 810/3116/18 has really made a great gift to real estate developers that had been selling apartments through individuals.

In this resolution the justices concluded that the sellers of real estate that are not registered as individual entrepreneurs (IEs) cannot be taxed as IEs, even if they carry out systematic sales of real estate, which "de facto" make up an entrepreneurial activity. 

This resolution also came in handy for us. Using it as one of the key arguments, we managed to win the case in the Sixth Appellate Administrative Court in August 2022.

However, in my opinion, it is too early to "chill out" in this category of cases and rely solely on the said resolution of the "Tax Chamber". 

A very large percentage of the justices (six justices out of fifteen) did not agree with the majority and expressed a dissenting opinion. So, if such a case is assigned to the dissenting justices, there is a great chance that they will direct the case to the Grand Chamber.

If this happens and the Grand Chamber accept the case for its consideration, it is possible that the approach can change radically.

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