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Keski-Suomen LO 21.2.1989 175 AI generated

Court allows shareholder's salary to be taxed as professional income under tax law section 56.

Case Number Keski-Suomen LO 21.2.1989 175
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
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Legislator summary

AI generated

The Supreme Administrative Court overturned the County Administrative Court's decision regarding the taxation of a sole shareholder's salary. The lower court had ruled that the shareholder's salary should be taxed as professional income under Section 56 of the Income Tax Act, citing the company's diverse activities including bookkeeping, management, and technical consulting. The Supreme Court agreed, determining that the nature of the company's operations and the shareholder's role justified classifying the income as professional income rather than capital income.

Legislator headnote

AI generated

Verotuslaki 56 §; The salary of a sole shareholder in a company engaged in professional services is taxable as professional income if the company's activities align with the shareholder's professional expertise.

Keywords

AI generated
sole shareholder taxation professional income classification salary treatment company activities income tax law

Cited Legislation

AI generated
Verotuslaki 56 §
AI generated
admin_1987_uusimaa-county__127
Court allows tax deduction for boat usage benefit as salary, not hidden dividend, rejecting advance ruling request.
admin_1989_central-finland-county__118
Court ruled company income from flying lessons is taxable as individual professional income under Finnish tax law.
admin_1995_kuopio-county__1250
Court allows loan interest deduction for share purchase when business activity is incidental to investment.
insurance_2019_4473-2017
Insurance court allows unemployment benefits claimant to be considered an employee despite significant shareholding in employer company.
admin_1996_central-finland-county__586
Partnership allowed to deduct business loss despite silent partner being a corporation for part of the year.

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Full text

KHO on kumonnut lääninoikeuden päätöksen. KHO:n päätöksen viitetiedot näkyvät ennakkotapauksen lopussa.

Voitiinko osakeyhtiön tulo verottaa verotuslain 56 §:n nojalla osakkaan ammattitulona.

Osakeyhtiön pääasiallinen toiminta oli kirjanpito- ja isännöintipalvelua. Yhtiö toimitti myös tilintarkastuksia, antoi neuvoja ATK:n käyttöönotossa ja laati erilaisia asiakirjoja. Yhtiön ainoana osakkaana ja palkallisena työntekijänä oli A. Tilikaudella 1.11.1985 - 31.10.1986 hänelle maksettiin yhtiöstä palkkaa 66.000 markkaa. Yhtiön liikevaihto tilikaudella oli 139.793 markkaa. Lääninoikeus katsoi, että yhtiön toimintaa kyseisellä tilikaudella on pidettävä A:n ammattitoimintana. Yhtiön tulo oli verotettava A:n tulona.

VerotusL 56 §

KHO:n päätös 29.11.1989 taltionumero 4350. Lääninoikeuden päätös kumottu.