(1) New facts have been discovered that may, alone or together with the material in the possession of the Director, at the time of making the assessment, charge the tax or change the amount of the tax;
(2) The seller made an incorrect declaration that could have changed the amount of the tax or prevented the payment of tax;
(3) An error was discovered in the assessment."
- The application to amend the assessment – whether the appellant has grounds for correction:
- The appellant argues that Section 85(a)(3) The law allows for the correction of any type of mistake that occurred in the assessment, including a legal error, and that due to a legal error, it reported and declared in its self-assessment, after winning the "Buyer's Price" tenders, which is the subject of the appeals, for the purchase of a "right in real estate", in the sense of Real Estate Taxation LawThis is due to the fact that it did not receive tax advice prior to reporting to the respondent, and because the agreements signed between it and the ILA after it won the "Buyer's Price" tenders were titled a "lease contract".
- The appellant claims that the lawyers who handled the reports to the respondent on her behalf are not tax experts and that only after she received the opinions of external tax experts in 2019 did she find out that the documents signed by her, beyond the lease contract – i.e., the construction contract and the appendix of the special terms, as well as the documents sent to her by the control company and the schedule set therein – whose provisions prevail over the provisions of the lease contract, Their true economic essence is that it did not acquire a "right in real estate" within the meaning of the law.
- The respondent, for his part, argues that the appellant has not proved the existence of an "error" that justifies the correction of its own assessments, and in any event, it is not a "mistake" according to Section 85(a)(3) to the law.
According to him, the request to amend the assessment is essentially a request to cancel the self-assessment, and it should be examined as such, and that such a request should only be approved in exceptional cases, in accordance with the principles set forth in case law and in the execution instructions regarding the amendment of income tax reports and assessments under section 147 of the Income Tax Ordinance.