The SPFU plans to strengthen control over the activities of property valuation market participants in Ukraine
This to be achieved by improving the legal framework and the monitoring mechanisms of The Unified Base of Evaluation Reports
At present, the number of certified property valuation specialists in Ukraine exceeds 13 thousand. The Fund not only provides their training, defines their qualification level, and grants permission to carry out professional activities, but also monitors the reports submitted by them to the Unified Base, which serve as the basis for calculating personal income tax from the sale, gifting, inheritance of real estate, and so on.
This information was provided by the State Property Fund of Ukraine (SPFU).
"Based on a valuation eference or report, property sales tax is paid. Of course, there are cases where attempts are made to minimise taxes. Such actions lead to abuses in working with the Unified Base – during the preparation of a reference or during the registration of an appraisal report. Therefore, we are implementing systemic measures – more sophisticated legal regulation and increased liability for appraisers," says Svitlana Bulhakova, Director of the Department of Property Evaluation, Property Rights and Professional Appraisal Activities of the SPFU.
The most common cases of dishonest work by market participants during evaluation:
- manipulation of data about a real estate object that is entered into the Unified Database (providing false information);
- failure of evaluation activity subjects (appraisers) to comply with legislation while working in the Unified Base (for example: failure to upload a valuation eport to the Unified Base);
- significant underestimation of the value of real estate in the report, etc.
It is noted that the fund plans to make amendments to legal documents that already exist and regulate the operation of the Unified Base of appraisal reports:
- a draft amendment to Art. 172 of the Tax Code of Ukraine has been developed, which is currently undergoing the approval procedure with state authorities – the amendments are intended to regulate the operation of the Unified Database of appraisal reports, which will improve the automatic valuation processes and the registration procedure for appraisal reports;
- changes have been developed to legal acts regarding the increased responsibility of evaluation activity subjects and appraisers during their work in the Unified Base, including the disconnection of violators from the Unified Base.
Background. Earlier, Mind reported that, according to the SPFU, privatisation in H1 2023 had brought 1.8 billion UAH to the state budget.
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