New Airport - Shelved

I actually discussed that with a lady at BIR in the dearly 2000’s. Of course, you are correct, most owners of land do not pay the taxes (tax in vacant land is pretty cheap though). In fact the lady’s family was in that position. They are different here than in the USA. When I mentioned that they auction off properties in the US for unpaid taxes, she thought that was very cruel. They would never do that here. I doubt they would do anything to penalize title holders for unpaid taxes, they just let the bill accumulate. Then, when somebody with money comes along to buy the property, the buyer must pay the total amount if unpaid if he really wants the land since it cannot be retitled to a new owner with outstanding tax obligations.


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I don't doubt that's true. Advantages go to the informed or those in a position to that information.

 

Have I missed something - if a piece of land has P1m in unpaid taxes and is worth 5m, then surely the owner sells for 4m and the buyer gets the land for 4m plus the 1m he pays for the outstanding tax. Are there are other issues, such as penalties that would only be made against the seller? If not, then everyone is in the same position as they would be if the land has its taxes paid up-to-date and was sold at its true value. Who would sell anything worth 5m for, say, 3m because it has tax due at 1m?

 

For some it's not really about the taxes due (other than the fact they do not have the funds to pay them) its more a question of do they know the value of their land and how much do they want for it or how much can they get for it even if they accept below that market price. I believe what has been said is that knowing they have to pay the back taxes for the property those who have the money may not be compensating the owners the full value of the property knowing the title owners will accept much less. Throw in a politician or developer who knows a corporation is looking for land for a condo or mall and they decide to start buying up that land before it is public knowledge. The owners that did not know about the proposed development would not know the true worth of the property they are now getting offers on.

My wife's father has plots of family land that he has not paid taxes on for years. Fortunately his daughters have stepped up and were able to pay those taxes and keep that property for the family where others have not been able to do that and may sell for what they believe is a good deal but may actually be a bad deal for them.