Legal Updates

The municipal tax manager is not empowered to interfere with the contractual relationship between a lessor and a lessee

March 4, 2019

A city refused to recognize lessees of the stores in a mall as holders of the public space for purpose of municipal tax.
The Court ordered the city to record the lessees as holders of the joint space in the mall. The discretion of the municipal property tax manager to refuse to register a holder in the absence of dispute between the parties to the contract is very limited and the manager is not empowered to intervene with the contractual relations between the parties and determine differently than they agreed. There is no doubt that the lessees agreed to be recorded as holders of the joint areas for the purpose of municipal tax and therefore the city may not intervene in the specific determinations of the rental contracts.