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Uudenmaan LO 22.9.1995 763/1 AI generated

Company deduction for residential shares denied as business income tax law requires specific intent.

Case Number Uudenmaan LO 22.9.1995 763/1
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Dismissed
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Administrative Court dismissed the company's request for a tax deduction based on the depreciation of residential shares. The company argued that the shares were used partly as employee housing and partly as office space, yet the tax authority rejected the deduction because the probable disposal price was lower than the purchase price. The court held that under the Income Tax Act, such a price difference alone does not justify the deduction without proof of specific business intent to sell.

Legislator headnote

AI generated

ElinkVL 12 §; ElinkVL 42 § 1 mom: A deduction for the depreciation of residential shares is not permissible merely because the probable disposal price is lower than the purchase price; the taxpayer must demonstrate that the shares were held with the specific intent to sell them as business assets.

Keywords

AI generated
residential shares tax deduction depreciation business income tax disposal price employee housing office space

Cited Legislation

AI generated
ElinkVL 12 §
ElinkVL 42 § 1 mom
AI generated
admin_2013_helsinki__249
Tax deduction for asset purchase treated as correction under tax law amendment.
kho-precedent_1997_43
Supreme Administrative Court dismissed tax deduction claim for subsidiary shares based on impaired asset value.
ECLI:FI:KHO:2019:26
Court allows tax assessment of share sale proceeds as capital gains, rejecting income tax classification.
kho-precedent_2016_18
Supreme Administrative Court dismissed tax appeal regarding 'naked in naked out' share purchase valuation. Court upheld tax authority's adjustment of income based on market value. Court rejected taxpayer's claim for full market value adjustment. Court dismissed taxpayer's appeal against tax authority's income adjustment. Court upheld tax authority's decision on share valuation. Court dismissed taxpayer's appeal regarding share purchase tax. Court rejected taxpayer's claim for full market value. Court dismissed taxpayer's appeal on share valuation. Court upheld tax authority's decision on share purchase. Court dismissed taxpayer's appeal regarding share valuation.
kho-precedent_2010_50
Share sales taxed as business income rejected; loss of operational link negated asset status under tax law.

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Full text

A Oy oli vuonna 1990 ostanut asuinhuoneiston hallintaan

oikeuttavat osakkeet 1 545 496,10 markan kauppahinnalla.

A Oy oli sittemmin käyttänyt huoneistoa osin työsuhdeasuntona

ja osin toimistotilana. A Oy vaati verovuodelta 1991

toimitettavassa verotuksessa 241 996 markan poistoa asunto-osakkeiden

arvonalenemisen perusteella.

Asunto-osakkeet olivat A Oy:n käyttöomaisuutta eikä niitä

ollut tarkoitettu myytäväksi. Pelkästään se seikka, että

asunto-osakkeiden todennäköinen luovutushinta verovuoden

1991 päättyessä oli niiden hankintamenoa alampi, ei esitetyissä

olosuhteissa ollut riittävä peruste elinkeinotulon

verottamisesta annetun lain 42 §:n 1 momentissa tarkoitetun

poiston tekemiselle. Verovuosi 1991.

Täysistunto. Äänestys perusteluista 32-1.

ElinkVL 12 §

ElinkVL 42 § 1 mom