The new Act amends § 11 of the Income Tax Act concerning the compiling of the list of non-profit associations, foundations and religious associations benefiting from income tax incentives. According to the amendment, the expert committee whose task until now was making recommendations to the Tax and Customs Board for compiling the list, shall be abolished; and the list shall subsequently be updated (incl. the inclusion of new members) every month. The regular updating of the list shall make the procedure of being entered in or deleted from the list shorter and faster for the non-profit associations and foundations.
The proposed amendment should enter into force on 1 July 2019.
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The case: a land owner (natural person) owns a property consisting of two cadastral units, the intended use of which is residential land. One unit is a plot of land with a residential building and some installations on it, the other just a plot of land without any buildings. The tax authority applied tax exemption only to the cadastral unit with the residential building. Whether all the cadastral units of a residential property consisting of several cadastral units are applicable to tax exemption or only the cadastral unit with the building on it, which is the land owner’s place of residence as registered in the Population Register, was battled out in Court.
The college took the view that in applying the exemption, all cadastral units constituting a property, the intended purpose of which is residential land, must be classified as residential land and thus, the land tax exemption was also applied to the cadastral unit without any buildings on it.
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