14 May 2015
As an owner of an industrial property you may have received a detailed request for information from MPAC with a response deadline of May 29, 2015. If you have received a request similar to the following, we recommend that you respond prior to the deadline.
Purpose of MPAC’s Request – 2017-2020 Assessment Cycle
Through an initiative called the Special Purpose Business Property Assessment Review (SPBPAR), MPAC and the Ministry of Finance are striving to improve the accuracy of industrial property assessments. The information requested is intended for use by MPAC in its analysis of values for the 2017-2020 assessment cycle. Download information regarding SPBPAR.
Why You Should Respond to the Request
MPAC has legal authority to request any information or document relating to the assessment of land. Taxpayers are required to respond to MPAC with the information within their knowledge and the documents within their possession or control, and MPAC is legally required to safeguard the confidentiality of any sensitive information and documentation which you provide. Current penalties for failure to respond include the possibility of a fine or reversal of onus on an appeal. Significant additional penalties for non-compliance are under consideration. A timely response to MPAC’s request will reduce the perceived need for increased penalties, and protect your current and future interests.
How You Should Respond
Generally a response to the request by MPAC would include the information and documents that are relevant and readily available. You are not obliged to create documents or conduct research. Your opinion on such matters as the property’s replacement cost new, the replacement cost of an alternative property, and losses in value due to various elements, may not be relevant to the assessment and in such case should not be provided. Information relating to production capacity, business restructurings and production curtailments may not be readily available.
Once the response is prepared, we recommend that it be reviewed by your consultant prior to submission to MPAC. If you have any questions or concerns, please contact your property tax consultant, or email us.
Please Note: The content of this article is intended to provide a general guide to the subject matter. Please consult your Altus Group property tax consultant to address your specific circumstances.