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Uudenmaan LO 19.4.1988 523/IV AI generated

Court rules that selling shares in a property company constitutes business income when done regularly.

Case Number Uudenmaan LO 19.4.1988 523/IV
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Administrative Court ruled that the taxpayer's profit from selling shares in a housing company was taxable business income. Although the taxpayer lived in the property during the sale period, the court found that the regular acquisition and disposal of shares over several years constituted a continuous business operation. Consequently, the tax authority's classification of the gain as professional income was upheld against the taxpayer's claim for exemption.

Legislator headnote

AI generated

ElinkVL 1 §; ElinkVL 4 §: The sale of shares in a housing company is considered business income when the taxpayer engages in the regular and continuous acquisition and disposal of such shares, regardless of the taxpayer's personal residence in the property.

Keywords

AI generated
business income classification share disposal activity housing company shares continuous business operation tax exemption denial professional income status regular acquisition pattern

Cited Legislation

AI generated
ElinkVL 1 §
ElinkVL 4 §
TVL 21 §
AI generated
admin_2000_vaasa__260
Company shares held by CEO and spouse are not business assets if rented via normal lease, not as compensation for work.
admin_1988_uusimaa-county__1196
Court dismissed tax claim; ownership deemed to start at contract date, not transfer date, under Finnish tax law.
kho-precedent_2000_3
Court dismissed tax deduction claim for mortgage on property bought for investment purposes by elderly parents.
kho-precedent_2015_1
Finnish Supreme Administrative Court allows tax-free gain from selling half a plot where the taxpayer lived for years, despite a new building existing. The court ruled that the original residence's location qualifies for tax exemption under the Income Tax Act. The decision clarifies that the existence of a replacement building does not negate the tax-free status of the land portion sold.
admin_1988_uusimaa-county__1314
Court denies tax exemption for home sale when owner lived there less than a year.

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Full text

Verovelvollinen oli ostanut asunto-osakeyhtiön osakkeet

450 000 markalla 17.2.1982 ja teettänyt huoneistossa peruskorjauksen.

Osakkeet oli myyty 900 000 markalla 10.7.1983.

Verovelvollinen oli verovuotta edeltävinä vuosina ostanut

vuosittain 3-5 ja myynyt 4-5 asunto-osakehuoneiston hallintaan

oikeuttavat osakkeet. Hän oli myynyt omana asuntonaan

käyttämänsä huoneiston hallintaan oikeuttavat osakkeet myös

vuonna 1982. Verovelvollisen tulo oli verovuonna koostunut

puheena olevien osakkeiden ja erään toisen osakehuoneiston

hallintaan oikeuttavien osakkeiden myyntivoitoista sekä korkotuloista.

Toiminnan laajuuden ja jatkuvuuden vuoksi verovelvollisen

katsottiin harjoittaneen osakkeiden myyntiä

elinkeinotoimintana, minkä vuoksi verolautakunta luki osakkeiden

luovutuksesta saadun voiton 51 925 markkaa verovelvollisen

ammattituloksi.

Lääninoikeus katsoi, että osakkeiden luovutus edellä mainituissa

olosuhteissa on liittynyt verovelvollisen harjoittamaan

elinkeinotoimintaan, vaikka verovelvollinen olikin asunut

huoneistossa 7.7.1982-14.7.1983. Oman asunnon myyntivoitto

ei siten ollut verovapaa. Verovuosi 1983.

ElinkVL 1 §

ElinkVL 4 §

Vrt. TVL 21 §