Property Tax Disputes Involving Organizations: Judicial Trends and Outlook

Property tax disputes involving organizations continue to be relevant in judicial practice. Taxpayers who invest heavily in upgrading modern technological equipment must understand the tax implications of their investments. Legislators have decided to only tax real estate and exempted movable property from taxation. However, the legislation on taxes and fees does not define the criteria for distinguishing movable and immovable property for tax purposes. The tax authorities rely on the criteria in civil legislation, which does not always ensure fair taxation. In 2024, based on the results of a series of cases, the Russian Supreme Court established a number of criteria to distinguish movable and immovable property, taking into account the specifics of transactions with such property and the specifics of the taxpayers’ scope of activities. How should investors’ interests be protected in the future? What else should the government do to provide legal certainty when considering property tax disputes involving organizations? What are some of the current trends in judicial practice and what is the outlook for its further development?