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IMT Tax

Discussion in 'Portugal Property' started by joseph, Sep 20, 2006.

  1. joseph

    joseph New Member

    Hi everyone,

    My friends, with a help of a local man, bought an apartment directly from developer several years ago. They put an x price in their contrato promessa and, advised by the same local man, made it x/2 on escritura. Now the tax man sends them a letter and invites to appear with all documentation.
    Has anyone similar experience ? What to expect ?
    Any advice ??
     
  2. kai

    kai New Member

    Oh dear.
    I have seen this happen. mostly with blocks of apartments when obvious discrepancies exist between the declared sale price of identical properties.
    If your friends confess their wrongdoing they will pay a fine, plus the IMT they should have paid. The developer will pay a fine, plus the IRC he should have paid.
    They could try and convince finances they really got it for that price, but it will not be easy. Finances can ask for the powers to check bank accounts, and if "black" money was paid by cheque they will find it. Where are the copies of the contrato promessa with the real value on? If they want ot go down this route, I would suggest getting some professional help (i.e. a good accountant)
    I would talk to the developer, and see if he has the same problem with other apartments and see what has happened.
    Under-declaration is dying out, and this is an example of when a low value has alerted Financas.
    Good luck!
     
  3. joseph

    joseph New Member

    Thank you, Richard,

    No good news, though. And, as far as I know, if the unpaid amount exceeds EUR 15.000,00 the penal responsibility is involved, up or imprisonment.
    Somewhat I trust that their case is not unique, for there are around 180 apartments in total and the developer certainly has to have been approached by someone else already. I just wonder whether it is safe for my friends to accept the scheme of the developer, if he has such and something tells me he does.
     
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