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Uudenmaan LO 8.7.1993 819/4 AI generated

Court allows 85% interest deduction for business debt not linked to main trade income.

Case Number Uudenmaan LO 8.7.1993 819/4
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Administrative Court allowed the taxpayer to deduct 85% of interest exceeding the self-assessment limit. The taxpayer incurred debt to acquire shares in an open company, which was taxed as business income under the Income Tax Act, yet the court found the debt unrelated to the taxpayer's primary trade. Consequently, the court ruled that the debt belonged to the taxpayer's other income activities, permitting the standard deduction rate.

Legislator headnote

AI generated

Verotuslaki 56 §; Elinkinnoituslaki 18 § 1 mom 2 kohta: Interest on debt acquired for shares in a company taxed as business income is deductible at 85% if the debt is not linked to the taxpayer's main trade but to other income activities.

Keywords

AI generated
interest deduction business income share acquisition taxable activities open company self-assessment limit income classification

Cited Legislation

AI generated
Verotuslaki 56 §
Elinkinnoituslaki 18 § 1 mom 2 kohta
Verotuslaki 87 § 1 mom
Verotuslaki 89 § 1 mom
AI generated
admin_1990_uusimaa-county__136
Court allows partial interest deduction for partnership debt on owner's residence, limiting deduction to 10,000 Mks total income.
admin_1993_turku-and-pori-county__110
Court allows full interest deduction for business debt without mandatory minimum personal contribution threshold.
admin_1986_central-finland-county__1372
Court allows silent partner to deduct interest on company loan as business expense under tax law.
kho-precedent_2003_71
Supreme Administrative Court allows deduction of guarantee interest proportional to original debtor's deductible business loan share.
admin_1998_hame-county__544
Administrative court allows deduction of loan interest for partnership property transferred privately to a partner.

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Full text

A oli suorittanut korkoa velasta, joka oli nostettu avoin

yhtiö X:n yhtiöosuuden hankkimiseksi. Siitä huolimatta,

että yhtiön tulo oli verotuslain 56 §:n nojalla verotettu

A:n elinkeinotulona, yhtiöosuuden hankkimiseksi otetun

velan ei katsottu liittyvän A:n elinkeinotoimintaan vaan

hänen muuhun ansiotoimintaansa. A sai vähentää koroista

1 000 markan omavastuuosuuden ylittävältä osalta 85 prosenttia.

Verovuosi 1990.

VerotusL 56 §

ElinkVL 18 § 1 mom 2 kohta

TVL 87 § 1 mom (1240/88)

TVL 89 § 1 mom (1335/89)