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Uudenmaan LO 21.1.1992 72/3 AI generated

Administrative court dismissed appeal regarding tax treatment of land sale at undervalue to family-controlled company.

Case Number Uudenmaan LO 21.1.1992 72/3
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Dismissed
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Legislator summary

AI generated

The administrative court dismissed the state's appeal against a lower court decision regarding the tax treatment of a land sale at an undervalue. The taxpayer sold land to a company in which he and his minor daughter held majority shares, arguing the transaction should be treated as a capital contribution rather than a taxable profit. The court upheld the lower court's ruling that the benefit received by the company constituted a capital investment for both the taxpayer and his daughter, thereby exempting the transaction from random profit tax under the relevant tax law section.

Legislator headnote

AI generated

Verotuslaki 56 §; The court held that a sale of property at an undervalue to a company controlled by the seller and his minor child constitutes a capital contribution rather than a taxable profit, provided the transaction is structured to avoid random profit tax.

Keywords

AI generated
undervalue sale capital contribution random profit tax minor child ownership family controlled company tax exemption administrative appeal

Cited Legislation

AI generated
Verotuslaki 56 §

Cited Case Law

AI generated
KHO A:25.9.1986 T:3685
KHO A:25.9.1986 T:3685, A:26.3.1987 T:1034 ja
KHO A:26.3.1987 T:1034
KHO A:23.6.1988 T:2735
KHO A:22.1.1993 T:188
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admin_1990_turku-and-pori-county__20
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admin_1986_uusimaa-county__1210
Administrative court dismissed company's appeal regarding incorrect tax treatment of asset depreciation deductions.
kho-precedent_1999_19
Tax authority dismissed VAT deduction claim for business income tax purposes due to lack of proper documentation.
admin_1995_kuopio-county__981
Finnish tax court ruled farm equipment sale proceeds taxed annually per cash basis, not as a lump sum.
kho-precedent_2002_44
Supreme Administrative Court dismisses appeal regarding statute of limitations for stamp duty on land acquisition before land reform law.

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Full text

Verovelvollinen oli myynyt omistamansa tontin alihintaan

yhtiölle, jonka osakekannasta hän omisti 1/3 ja hänen alaikäinen

tyttärensä 2/3. Lääninoikeus katsoi, että yhtiön

alihinnan muodossa saamaa etua oli pidettävä verovelvollisen

omasta ja tyttärensä puolesta yhtiöön tekemänä pääomansijoituksena.

Lääninoikeus hylkäsi valtion- ja kunnanasiamiehen valituksen,

jossa oli vaadittu satunnaisen myyntivoiton verotuksessa

verotuslain 56 §:n nojalla otettavaksi huomioon, että

tontti oli myyty alihintaan myyntivoiton verotuksesta vapautumisen

tarkoituksessa. Verovuosi 1988.

VerotusL 56 §

Ks. KHO A:25.9.1986 T:3685, A:26.3.1987 T:1034 ja

A:23.6.1988 T:2735

KHO:n päätös A:22.1.1993 T:188 : Ei muutosta