Process: 712/2014-T

Date: February 23, 2015

Tax Type: Valor do pedido:

Source: Original CAAD Decision

Summary

This arbitration case (712/2014-T) before the Portuguese Administrative Arbitration Centre (CAAD) addresses the application of Stamp Duty under item 28.1 of the General Stamp Duty Table (Tabela Geral do Imposto do Selo - TGIS) to independent units within vertical property ownership. The claimant challenged 35 separate stamp duty assessments issued in 2013 for the 2012 tax year, affecting individual apartment units located in a single building in Lisbon. Each assessment corresponds to a distinct autonomous unit registered independently in the property registry, with Taxable Patrimonial Values (Valor Patrimonial Tributário - VPT) ranging from approximately €58,570 to €66,100. The central legal question involves whether stamp duty under item 28.1 TGIS should be levied separately on each independent unit within a vertical property regime or whether such units should receive different tax treatment. Item 28.1 of the TGIS imposes an annual stamp duty on the ownership of urban real estate at a rate applied to the property's VPT. In vertical property arrangements, where a building is divided into multiple autonomous units with independent use, the Tax and Customs Authority (Autoridade Tributária e Aduaneira - AT) typically treats each unit as a separate taxable property. The claimant contested this approach through CAAD arbitration, which provides an alternative dispute resolution mechanism for tax matters in Portugal. The case illustrates important principles regarding property taxation in condominium structures and the calculation methodology for stamp duty on real estate holdings. This type of dispute is significant for property owners holding multiple units within vertical property regimes, as it affects their overall tax liability and understanding of how Portuguese tax law treats fragmented property ownership within a single building structure.

Full Decision

ARBITRATION AWARD

Case No. 712/2014-T

Claimant/Applicant: A...

Respondent: Tax and Customs Authority (hereinafter "TCA")

1. Report

On 14 October 2014, A..., taxpayer no. ..., resident at Street ..., in Lisbon, hereinafter referred to as the Claimant, submitted to the Administrative Arbitration Centre (CAAD) a request for constitution of an arbitral tribunal, with a view to challenging tax assessment acts imposing stamp duty under item 28.1 of the General Table of Stamp Duty, relating to units with independent use of urban property in strata ownership, located at ..., no. 2, in the parish of ..., municipality of Lisbon, registered in the property register under article ..., namely,

i. Assessment No. 2013 ..., in the amount of €195.24, relating to the property described in the property register entry no. U-...-RC E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €58,570.00;

ii. Assessment No. 2013 ..., in the amount of €220.34, relating to the property described in the property register entry no. U-...-1º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €66,100.00;

iii. Assessment No. 2013 ..., in the amount of €213.54, relating to the property described in the property register entry no. U-...-1º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €64,090.00;

iv. Assessment No. 2013 ..., in the amount of €220.34, relating to the property described in the property register entry no. U-...-1º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €66,100.00;

v. Assessment No. 2013 ..., in the amount of €198.50, relating to the property described in the property register entry no. U-...-2º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €59,550.00;

vi. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-2º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

vii. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-2º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

viii. Assessment No. 2013 ..., in the amount of €202.34, relating to the property described in the property register entry no. U-...-3º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

ix. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-3º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

x. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-3º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xi. Assessment No. 2013 ..., in the amount of €202.34, relating to the property described in the property register entry no. U-...-4º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

xii. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-4º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xiii. Assessment No. 2013 ..., in the amount of €285.28, relating to the property described in the property register entry no. U-...-4º E ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xiv. Assessment No. 2013 ..., in the amount of €202.34, relating to the property described in the property register entry no. U-...-5º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

xv. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-5º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xvi. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-5º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xvii. Assessment No. 2013 ..., in the amount of €202.34, relating to the property described in the property register entry no. U-...-6º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

xviii. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-6º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xix. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-6º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xx. Assessment No. 2013 ..., in the amount of €195.28, relating to the property described in the property register entry no. U-...-RCº E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €58,570.00;

xxi. Assessment No. 2013 ..., in the amount of €213.63, relating to the property described in the property register entry no. U-...-1º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €64,090.00;

xxii. Assessment No. 2013 ..., in the amount of €220.33, relating to the property described in the property register entry no. U-...-1º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €66,100.00;

xxiii. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-2º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxiv. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-2º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxv. Assessment No. 2013 ..., in the amount of €198.58, relating to the property described in the property register entry no. U-...-2º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €59,550.00;

xxvi. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-3º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxvii. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-3º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxviii. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-3º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

xxix. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-4º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxx. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-4º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxxi. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-4º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

xxxii. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-5º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxxiii. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-5º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxxiv. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-4º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxxv. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-5º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

xxxvi. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-6º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxxvii. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-6º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xxxviii. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-6º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

xxxix. Assessment No. 2013 ..., in the amount of €195.28, relating to the property described in the property register entry no. U-...-RCº E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €58,570.00;

xl. Assessment No. 2013 ..., in the amount of €220.33, relating to the property described in the property register entry no. U-...-1º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €66,100.00;

xli. Assessment No. 2013 ..., in the amount of €220.33, relating to the property described in the property register entry no. U-...-1º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €66,100.00;

xlii. Assessment No. 2013 ..., in the amount of €213.63, relating to the property described in the property register entry no. U-...-1º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €64,090.00;

xliii. Assessment No. 2013 ..., in the amount of €198.50, relating to the property described in the property register entry no. U-...-2º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €59,550.00;

xliv. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-2º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xlv. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-2º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xlvi. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-3º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

xlvii. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-3º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xlviii. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-3º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

xlix. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-4º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

l. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-4º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

li. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-4º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

lii. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-5º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

liii. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-5º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

liv. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-5º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

lv. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-6º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

lvi. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-6º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

lvii. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-6º E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00.

The Claimant requests the annulment of the aforesaid stamp duty assessment acts.

It alleges, for this purpose, that the property to which the stamp duty assessments refer, the legality of which is in dispute, is a property under a regime of full ownership or vertical ownership consisting of 21 units capable of independent use, of which 2 are dedicated to commerce and services, and the remaining 19 to housing, and in relation to the latter, the TCA issued stamp duty assessment notes.

The aforementioned units were subject to assessment in accordance with the Municipal Property Tax Code (CIMI), in 2012. The Tax Patrimonial Value of each was determined separately, with values ranging between €58,570.00 and €66,100.00. The total tax patrimonial value of the property amounted to €1,173,010.00.

The property in question is not established under horizontal property ownership, and none of the units with independent use has a tax patrimonial value equal to or greater than €1,000,000 (one million euros). Therefore, in its view, the legal condition for the incidence of item 28.1 of the General Table of Stamp Duty is not met.

Ricardo Marques Candeias was designated as sole arbitrator on 5 December 2014. In accordance with article 11(1)(c) of the Tax Arbitration Regulations (RJAT), the singular arbitral tribunal was constituted on 23 December 2014.

Notified for this purpose, the TCA presented its response on 4 February 2015. It argues that the tax patrimonial value relevant for the purposes of the incidence of stamp duty is the total tax patrimonial value of the urban property and not the tax patrimonial value of each of the parts that comprise it, even though they may be capable of independent use, because the property is not established under horizontal property ownership.

The TCA further requested exemption from holding the meeting referred to in article 18 of the RJAT and its respective oral arguments, as well as exemption from submission of the administrative file.

Upon insisting with the TCA to join the administrative file to the present proceedings, the TCA made no statement or request.

Notified to respond, the Claimant stated it had no objection to the exemption from joining the administrative file, exemption from holding the meeting referred to in article 18 of the RJAT and its respective oral arguments.

The arbitral tribunal, having regard to the evidence presented to the proceedings, and with no exceptions to be resolved, deemed it unnecessary to join the administrative file, hold the aforementioned meeting, or produce arguments. Consequently, on 18 February 2015, the date of 23 February 2015 was set for the delivery of the decision.

The parties possess legal standing and capacity and are legitimate (articles 4 and 10(1)(2) of the RJAT, and article 1 of Order No. 112-A/2011 of 22 March). The proceedings do not suffer from nullities and no prior questions requiring examination have been raised.

2. Facts

Having critically assessed the documentary evidence produced by the Claimant, the following facts are considered proven and relevant to the decision of the case:

a) The claimant is the owner of the urban property located at ..., no. 2, in the parish of ..., municipality of Lisbon, registered in the property register under article ...;

b) The property is in full ownership;

c) It is composed of 21 units capable of independent use, of which 2 are intended for commerce and services, and 19 for housing, and are not established under a regime of horizontal property ownership;

d) The TCA assessed on 21 March 2013 the Stamp Duty for the year 2012, relating to part of the units with independent use existing in the property identified above, in the amount corresponding to 1% of their tax patrimonial value, as follows:

I. Assessment No. 2013 ..., in the amount of €195.24, relating to the property described in the property register entry no. U-...-RC E, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €58,570.00;

II. Assessment No. 2013 ..., in the amount of €220.34, relating to the property described in the property register entry no. U-...-1º D, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €66,100.00;

III. Assessment No. 2013 ..., in the amount of €213.54, relating to the property described in the property register entry no. U-...-1º F, ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €64,090.00;

IV. Assessment No. 2013 ..., in the amount of €220.34, relating to the property described in the property register entry no. U-...-1º E ..., Lisbon, for the year 2012, whose Tax Patrimonial Value is €66,100.00;

V. Assessment No. 2013 ..., in the amount of €198.50, relating to the property described in the property register entry no. U-...-2º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €59,550.00;

VI. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-2º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

VII. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-2º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

VIII. Assessment No. 2013 ..., in the amount of €202.34, relating to the property described in the property register entry no. U-...-3º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

IX. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-3º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

X. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-3º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XI. Assessment No. 2013 ..., in the amount of €202.34, relating to the property described in the property register entry no. U-...-4º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

XII. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-4º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XIII. Assessment No. 2013 ..., in the amount of €285.28, relating to the property described in the property register entry no. U-...-4º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XIV. Assessment No. 2013 ..., in the amount of €202.34, relating to the property described in the property register entry no. U-...-5º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

XV. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-5º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XVI. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-5º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XVII. Assessment No. 2013 ..., in the amount of €202.34, relating to the property described in the property register entry no. U-...-6º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

XVIII. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-6º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XIX. Assessment No. 2013 ..., in the amount of €205.28, relating to the property described in the property register entry no. U-...-6º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XX. Assessment No. 2013 ..., in the amount of €195.28, relating to the property described in the property register entry no. U-...-RCº E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €58,570.00;

XXI. Assessment No. 2013 ..., in the amount of €213.63, relating to the property described in the property register entry no. U-...-1º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €64,090.00;

XXII. Assessment No. 2013 ..., in the amount of €220.33, relating to the property described in the property register entry no. U-...-1º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €66,100.00;

XXIII. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-2º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXIV. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-2º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXV. Assessment No. 2013 ..., in the amount of €198.58, relating to the property described in the property register entry no. U-...-2º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €59,550.00;

XXVI. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-3º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXVII. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-3º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXVIII. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-3º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

XXIX. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-4º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXX. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-4º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXXI. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-4º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

XXXII. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-5º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXXIII. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-5º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXXIV. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-4º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXXV. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-5º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

XXXVI. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-6º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXXVII. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-6º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XXXVIII. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-6º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

XXXIX. Assessment No. 2013 ..., in the amount of €195.28, relating to the property described in the property register entry no. U-...-RCº E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €58,570.00;

XL. Assessment No. 2013 ..., in the amount of €220.33, relating to the property described in the property register entry no. U-...-1º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €66,100.00;

XLI. Assessment No. 2013 ..., in the amount of €220.33, relating to the property described in the property register entry no. U-...-1º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €66,100.00;

XLII. Assessment No. 2013 ..., in the amount of €213.63, relating to the property described in the property register entry no. U-...-1º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €64,090.00;

XLIII. Assessment No. 2013 ..., in the amount of €198.50, relating to the property described in the property register entry no. U-...-2º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €59,550.00;

XLIV. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-2º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XLV. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-2º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XLVI. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-3º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

XLVII. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-3º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XLVIII. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-3º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

XLIX. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-4º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

L. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-4º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

LI. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-4º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

LII. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-5º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

LIII. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-5º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

LIV. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-5º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

LV. Assessment No. 2013 ..., in the amount of €202.33, relating to the property described in the property register entry no. U-...-6º D, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €60,700.00;

LVI. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-6º F, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

LVII. Assessment No. 2013 ..., in the amount of €205.26, relating to the property described in the property register entry no. U-...-6º E, ... Lisbon, for the year 2012, whose Tax Patrimonial Value is €61,580.00;

e) The deadline for payment expired on 30 April 2013, with respect to the assessments relating to the first instalment; on 31 July 2013, with respect to the assessments relating to the 2nd instalment, and on 30 November 2013, with respect to the assessments relating to the 3rd instalment.

f) The total tax patrimonial value of the property is €1,173,010.00.

g) The Claimant filed an administrative review, which was rejected.

h) The Claimant was notified to proceed with payment of the aforementioned assessment notes in the total amount of €11,730.10.

i) The Claimant proceeded to pay the aforementioned amount.

The arbitrator's conviction was based on the documentary evidence joined to the proceedings; specifically, points a), b) and f) result from the contents of the property register certificate joined to the proceedings and the permanent certificate; points c), d), g) and h) result from the contents of the assessment notes for the three instalments of the tax; and point g) results from the administrative review and its respective decision which the Claimant joined.

For the decision of the case, no other facts with relevance were proven.

3. Law

These are the facts that merit examination. Let us proceed.

The Claimant argues in its initial petition that "(…) In the legislator's view, what matters is not the formal legal rigor of the property's concrete situation, but rather its normal use, the purpose for which the property is intended, contrary to what is mentioned by the TCA."

The Claimant argues that "(…) For the legislator, the situation of the property in vertical ownership or in horizontal ownership was not relevant, since no reference or distinction is made."

It further states that "the TCA's understanding that the sum of the Tax Patrimonial Values of the various units or divisions with independent use dedicated to housing, resulting in a global Tax Patrimonial Value of or exceeding €1,000,000.00, legitimizes the incidence of stamp duty under item 28 of the General Stamp Duty Table, is manifestly unlawful."

Thus the Claimant concludes that "(…) Since there is no single unit or division with independent use dedicated to housing with a Tax Patrimonial Value equal to or exceeding €1,000,000.00, the TCA could never subject the claimant to stamp duty under item 28 of the General Stamp Duty Table being impugned, as it is unlawful and therefore unacceptable and inconsistent with, among other things, the principle of fiscal legality."

It further concludes on the unconstitutionality of the assessment: "The TCA cannot distinguish where the legislator itself understood not to do so, on pain of violating the coherence of the fiscal system, as well as the principle of fiscal legality, provided for in article 103(2) of the CRP, and also the principles of justice, equality and fiscal proportionality."

The Claimant concludes, advocating for the acceptance of the request and, as a result, requests that "the arbitration action be judged well-founded on proof and, consequently, the assessments of stamp duty being challenged, in the amount of €11,730.10 (eleven thousand seven hundred and thirty euros and ten cents), be annulled, due to the defects identified above, all with the necessary legal consequences, in particular the payment of indemnity interest with respect to the amounts that the claimant paid, all in accordance with article 43 of the General Tax Code."

For its part, the TCA contests the position of the Claimant, basing its position on the fact that the property is in a regime of full ownership and the concentration in each property of independent housing units is not capable of triggering the incidence of stamp duty on each of them.

In the TCA's view, "the tax patrimonial value relevant for the purposes of stamp duty incidence is thus the tax patrimonial value of each of the parts that comprise it, even when capable of independent use."

The TCA argues that "the tax patrimonial value on which the incidence of stamp duty under item 28.1 of the General Table depends had to be, as it was, the total tax patrimonial value of the property and not that of each of its independent parts."

The TCA concludes that "any other interpretation would violate, indeed, the letter and spirit of item 28.1 of the General Table and the principle of legality of the essential elements of taxation provided for in article 103(2) of the Portuguese Constitution."

The TCA further advocates for the unconstitutionality of the interpretation made by the Claimant of item 28.1 of the General Stamp Duty Table, to the effect that the Tax Patrimonial Value on which its incidence depends is calculated per floor and not globally, infringing the principle of tax legality.

In its view, it is important to emphasize the different civil law regime attributed to horizontal property ownership as opposed to full ownership, which would consist, even for tax purposes, of different legal institutions. Hence the different treatment in terms of the incidence of item 28.1 of the General Stamp Duty Table.

Having briefly described the argumentative framework presented by the parties, let us proceed.

The question to be decided concerns whether the rule of incidence of item 28.1 of the General Table of Stamp Duty is applicable to properties that are not established under horizontal property ownership. In effect, in such cases, it is questioned whether the aforementioned item should apply to the sum of the Tax Patrimonial Value attributed to the different floors, that is, to the total Tax Patrimonial Value of the property, or rather to the Tax Patrimonial Value of each floor with independent economic use of the property.

This question has already been the subject of several awards from the CAAD, in particular those handed down in cases 132/2013-T, 14/2014-T, 30/2014-T and 88/2014-T, which we shall follow closely.

Item 28 of the General Table of Stamp Duty was added by Law No. 55-A/2012, of 29 October. It provides as follows:

"28 – Ownership, usufruct or right of superficies of urban properties whose tax patrimonial value recorded in the register, in accordance with the Municipal Property Tax Code, is equal to or greater than €1,000,000 – on the tax patrimonial value used for IMI purposes:

28.1 – For property with housing designation – 1% (…);"

With the amendment to article 67(2) of the Stamp Duty Code, also carried out by the aforementioned Law, it was established that as to "matters not regulated in the present code relating to item 28 of the General Table, the Municipal Property Tax Code shall apply subsidiarily."

By virtue of this referral, since the incidence rule of item 28.1 of the General Stamp Duty Table refers to urban properties, the concept of urban property shall be that resulting from the Municipal Property Tax Code.

The Municipal Property Tax Code establishes in article 2(1) the concept of property. It defines it as "any portion of territory, including water, plantations, buildings and constructions of any kind incorporated in or resting upon it, with a character of permanence, provided that it forms part of the assets of a natural or legal person and, under normal circumstances, has economic value, as well as water, plantations, buildings or constructions, under the foregoing circumstances, endowed with economic autonomy in relation to the land on which they are situated, although situated on a portion of territory which is an integral part of assets other than or which do not have a patrimonial nature."

Article 4 of the Municipal Property Tax Code establishes that urban properties are "all those that should not be classified as rural, without prejudice to the provisions of the following article."

Article 6 of the same Code proceeds to classify the various types of urban properties, distinguishing them, in paragraph 1 of the said article, into four subcategories: "a) Residential; b) Commercial, industrial or services; c) Land for construction; d) Others."

Article 6(2) of the same Code sets forth the criterion used for this distinction, considering that "Residential, commercial, industrial or services buildings are those licensed for such purpose or, in the absence of a licence, which have the normal purpose of each of these uses."

We observe that there does not result from the legal provisions of the aforementioned statute any classification of urban properties that distinguishes them between properties in horizontal ownership versus properties in vertical ownership.

If the legislator qualifies them as the same legal-fiscal reality, there would be a lack of legal support for the application of different tax regimes on the basis of the civil law nature that an urban property with housing designation has.

It is true that article 2(4) of the Municipal Property Tax Code determines that, "for the purposes of this tax, each autonomous unit, under horizontal property ownership, shall be considered as constituting a property." However, it is equally true that it does not establish any differentiation between the autonomous units of properties in horizontal ownership and the parts of property with independent use other than the classification as residential urban properties.

It follows from this that the legislator intended only, as it did, to differentiate urban properties by considering their normal purpose, that is, by considering the purpose to which each is bound. In this way, it thus prevents, from a fiscal point of view, a distinction that civil law provides for between properties in horizontal ownership and properties in vertical ownership; it does not, however, permit that such legal characterization to be relevant for what interests us, which is the scope of tax incidence, both for IMI and for item 28.1 of the General Stamp Duty Table, arising from the aforementioned referral.

Accordingly, we conclude that it is irrelevant for tax purposes whether the property is in vertical or horizontal ownership. What is rather relevant is the material truth underlying its existence as an urban property and its use for housing purposes.

Indeed, bearing in mind the legislator's intention in creating item 28 of the General Stamp Duty Table and the application that the TCA has been giving it, it is considered that the criterion adopted by the latter with respect to properties in vertical ownership does not conform to the principles of legality, equality and fiscal proportionality, enshrined constitutionally in our legal order.

The principle of fiscal equality should be understood in its material sense. Therefore, the emphasis of this principle shall always rest on the contributive capacity of each taxpayer. This means that we shall have equal tax for those with equal contributive capacity, and unequal tax for those with different contributive capacity. It is certain that the difference in tax shall be proportional to the different contributive capacity.

This principle is imposed upon us by the articulation of article 13 of the Portuguese Constitution with articles 103 and 104 of the same document.

Now, the stamp duty established by item 28 of the General Stamp Duty Table intends to harmonize the distribution of the fiscal burden of taxpayers, by imposing this stamp duty on holders of properties of high value intended for housing, exceeding €1,000,000.00, per floor with independent use.

In effect, as the principle of fiscal equality determines that equal fiscal treatment should be applied to what is equal and unequal treatment to what is different, there is no justification for differentiated treatment, for tax purposes, of the floors of a property solely because it is already established in horizontal ownership, provided that those floors have independent use.

And referring the Stamp Duty Code to the Municipal Property Tax Code, we consider that the registration in the property register of immovable properties in vertical ownership, constituted by different floors with independent use, must follow the same registration rules as properties constituted in horizontal ownership.

Attention should be drawn to article 12(3) of the Municipal Property Tax Code, according to which "each floor or part of property capable of independent use is considered separately in the matricial registration, which also specifies the respective tax patrimonial value."

Setting as the reference value for the incidence of the new tax the total Tax Patrimonial Value of the property in question, as the TCA proposes, finds no basis in the applicable legislation and referred to above.

Furthermore, the TCA itself issued the assessment notes that appear in the file, each of which relates to each of the units with independent use and housing designation. Each of them contains a particular reference to the Tax Patrimonial Value of each unit for the purposes of applying item 28.1 of the General Stamp Duty Table. It follows from this that the tax was assessed individually with respect to each of the parts with independent use and not considering the sum of the Tax Patrimonial Values of the floors of the property in full ownership.

In light of all the above, the legal criterion to be used for defining the incidence of stamp duty established in item 28.1 of the General Stamp Duty Table must be identical to that established for IMI purposes.

As can be read in the Arbitration Award delivered in case 132/2013-T, "there is no indication in the work relating to the discussion of bill no. 96/XII in the National Assembly of an interpretative rationale different from that presented here. In effect, such measure, termed a "special tax on urban residential properties of highest value," was justified by the need to comply with the principles of social equity and fiscal justice, imposing a greater burden on holders of properties of high value intended for housing, and, to that extent, imposing the new 'special tax' on 'homes valued at equal to or more than 1 million euros'."

The aforementioned decision further states that "if such logic seems to make sense when applied to 'housing' - whether it be a 'house', 'autonomous unit' or 'part of property with independent use' / 'autonomous unit' - because it is assumed to have above-average contributive capacity and, to that extent, justifies the need for an additional contributory effort, it would make little sense to then disregard calculations 'unit by unit' when only through the sum of their Tax Patrimonial Values (because held by the same individual) would the one million euros threshold be exceeded."

Provided that the TCA and, consequently, the lawfulness of the assessment in question would be justified only if some of the floors with independent use corresponded to a Tax Patrimonial Value greater than €1,000,000.00, which is not the case, as the highest value corresponds to only €66,100.00.

It follows from what has been said thus far that the position of the TCA is contrary to the Law and the Constitution, violating the principles of legality and fiscal equality.

The property in question is in full ownership and contains 19 units with independent use intended for housing. As shown in the evidence, none of them has a Tax Patrimonial Value equal to or greater than €1,000,000.00. We thus observe the non-occurrence of the legal prerequisite for the incidence of Stamp Duty provided for in item 28 of the General Stamp Duty Table.

As a consequence of the foregoing, we conclude that the stamp duty assessments challenged by the Claimant are unlawful. Therefore, the assessable matter serving as the basis for the incidence rule of item 28.1 of the General Stamp Duty Table must be the Tax Patrimonial Value determined in accordance with the Municipal Property Tax Code, for each of the floors of the property that are capable of independent use.

We have verified that the Claimant, notwithstanding not having accepted the lawfulness of the assessments now in dispute, paid the amounts of tax resulting from such assessments.

Articles 24(1)(b) of the Tax Arbitration Regulations and 100 of the General Tax Code provide that, when tax has been paid and subsequently the assessment supporting that tax is annulled, the taxpayer is entitled to reimbursement of the amounts unlawfully paid.

Article 43 of the General Tax Code provides that "indemnity interest is due when it is determined, in administrative review or judicial challenge, that there was error attributable to the service resulting in payment of the tax debt in an amount exceeding that legally due."

As to the existence, in this case, of error attributable to the service, this error is considered verified, according to uniform case law of the Supreme Tax Court (see, in this regard, the Awards of the Supreme Tax Court of 22 May 2002, Case No. 457/02; of 31 October 2001, Case No. 26167; of 2 December 2009, Case No. 0892/09) whenever administrative review or challenge of the assessment is filed (in the same sense, the decision in arbitration case 218/2013-T).

Therefore, the Claimant is entitled to indemnity interest, in accordance with articles 43(1) of the General Tax Code and 61(2)(5) of the Tax Procedure Code.

Being thus, the TCA must reimburse to the Claimant the amount of €11,730.10 plus interest at the legal rate of 4%, from the date of payment until the reimbursement of the amounts by the TCA.

4. Decision

Before the above described matter, it is decided:

a) To fully uphold the request filed by the Claimant in this tax arbitration proceeding, as to the unlawfulness of the Stamp Duty assessments Nos. 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., 2013 ..., and the same are to be considered null, with the necessary legal consequences.

b) To condemn the Respondent to reimburse to the Claimant the amounts paid towards payment of the stamp duties whose assessments have now been annulled, in the amount of €11,730.10;

c) To uphold the claim for payment of indemnity interest, at the legal rate, calculated from the date of payment of the stamp duty assessed in the now annulled assessments until the date of issuance of the credit note(s) relating to the reimbursement of the amounts unlawfully assessed and paid.

Value of the Case:

In accordance with the provisions of articles 306(2) of the Code of Civil Procedure and 97-A(1)(a) of the Tax Procedure Code and article 3(2) of the Regulations on Costs in Tax Arbitration Proceedings, the value of the action is set at €11,730.10.

Costs:

In accordance with article 22(4) of the Tax Arbitration Regulations and Table I annexed to the Regulations on Costs in Tax Arbitration Proceedings, the amount of costs is set at €918.00, due by the Tax and Customs Authority.

Notify.

Lisbon, 23 February 2015.

Document prepared by computer, in accordance with article 131(5) of the Code of Civil Procedure, applicable by referral in article 29(1)(e) of the Tax Arbitration Regulations, with blank verses and reviewed by me.

The Sole Arbitrator

Ricardo Marques Candeias

Frequently Asked Questions

Automatically Created

What is Clause 28.1 of the Portuguese General Stamp Duty Table (TGIS) and how does it apply to real estate?
Clause 28.1 of the Portuguese General Stamp Duty Table (TGIS) establishes an annual stamp duty on the ownership of urban real estate properties. This provision applies to individuals and entities that hold property rights over urban buildings or autonomous units on Portuguese territory. The stamp duty is calculated by applying a specific rate to the property's Taxable Patrimonial Value (Valor Patrimonial Tributário - VPT), which is the official value assigned by the tax authorities for taxation purposes. In the context of vertical property (propriedade horizontal), item 28.1 applies to each independent unit that has its own property registry entry and autonomous use, meaning each apartment, commercial unit, or parking space within a condominium building can be subject to separate stamp duty assessment. The tax is levied annually and is distinct from other property-related taxes such as IMI (Municipal Property Tax). Property owners must pay this duty regardless of whether the property generates income, making it a wealth tax on real estate ownership.
How is Stamp Duty (Imposto de Selo) calculated on independent units within a vertical property building?
Stamp Duty (Imposto de Selo) on independent units within a vertical property building is calculated by applying the stamp duty rate specified in item 28.1 of the TGIS to each unit's individual Taxable Patrimonial Value (VPT). Each autonomous unit registered independently in the property registry is treated as a separate taxable entity for stamp duty purposes. The VPT is determined by the tax authorities based on factors including the unit's location, size, construction quality, age, and other relevant characteristics. In the case presented, individual apartments with VPTs ranging from €58,570 to €66,100 were each assessed separately. The stamp duty amounts varied from approximately €195 to €285 per unit for the 2012 tax year. The calculation is straightforward: Rate × VPT = Stamp Duty owed. However, the legal question often arises whether this separate assessment of each unit is appropriate under Portuguese tax law, particularly when multiple units in the same building are owned by the same person or entity, which is precisely what was contested in this arbitration case.
Can individual units in vertical property be taxed separately under the Portuguese Stamp Duty regime?
Yes, under Portuguese Stamp Duty legislation, individual units in vertical property (propriedade horizontal) can be and typically are taxed separately under the Stamp Duty regime. Each autonomous unit that has independent use and its own property registry entry is considered a distinct taxable property for purposes of item 28.1 of the TGIS. This means that apartments, commercial spaces, storage rooms, and parking spaces within a condominium building each receive separate stamp duty assessments based on their individual Taxable Patrimonial Values (VPT). The Tax and Customs Authority's practice is to levy stamp duty on each registered unit independently, regardless of whether they are owned by the same person or different owners. This approach treats vertical property units similarly to separate standalone properties. However, this interpretation has been subject to legal challenges, as demonstrated by the arbitration case 712/2014-T, where a property owner contested the separate taxation of 35 units within the same building. The CAAD arbitration system provides a forum for resolving disputes over whether this separate taxation approach complies with the proper interpretation of stamp duty legislation.
What is the role of the Taxable Asset Value (VPT) in determining Stamp Duty liability on urban properties in Portugal?
The Taxable Asset Value (Valor Patrimonial Tributário - VPT) plays a central role in determining Stamp Duty liability on urban properties in Portugal. The VPT serves as the tax base upon which the stamp duty rate under item 28.1 of the TGIS is applied. This value is determined by the tax authorities using standardized valuation formulas that consider multiple factors including the property's location, construction area, type of construction, quality and comfort coefficients, age, and current market conditions. For vertical property units, each independent unit receives its own VPT assessment based on its specific characteristics. In the arbitration case discussed, units had VPTs ranging from €58,570 to €66,100, reflecting differences in size, floor level, or other attributes. The stamp duty owed is calculated by multiplying the VPT by the applicable rate. The accuracy and appropriateness of the VPT is crucial because it directly impacts the tax liability. Property owners who believe their VPT is excessive or incorrectly calculated can challenge it through administrative procedures or, as shown in this case, through tax arbitration proceedings at CAAD. The VPT is also used as the basis for calculating IMI (Municipal Property Tax), making it a fundamental element of Portuguese property taxation.
How can property owners challenge Stamp Duty assessments through CAAD tax arbitration proceedings?
Property owners can challenge Stamp Duty assessments through CAAD (Centro de Arbitragem Administrativa) tax arbitration proceedings by submitting a formal arbitration request within the legal deadlines. The process begins with filing a written petition that identifies the contested tax assessments, provides the legal and factual grounds for the challenge, and presents supporting documentation. In the case 712/2014-T, the claimant filed the request on October 14, 2014, challenging 35 separate stamp duty assessments related to vertical property units. The arbitration request must specify each contested assessment by its reference number and amount, identify the properties involved with their registry details and VPT values, and explain why the assessments are allegedly incorrect or unlawful. CAAD arbitration offers several advantages over traditional court litigation, including faster resolution times, lower costs, specialized tax law expertise among arbitrators, and binding decisions enforceable like court judgments. Property owners must typically exhaust preliminary administrative remedies or demonstrate that arbitration is the appropriate forum for their specific type of tax dispute. Once accepted, an arbitral tribunal is constituted to hear arguments from both the taxpayer and the Tax and Customs Authority, review evidence, and issue a final decision on the legality and correctness of the challenged stamp duty assessments.