Uudenmaan LO 11.5.1999 327/3 AI generated

Fiduciary company shareholders liable for hidden dividends paid as share purchase price under tax law.

Case Number Uudenmaan LO 11.5.1999 327/3

Court / Authority Hallinto-oikeus

Jurisdiction

Finland (FI)

Decision Date 11.05.1999

Outcome Dismissed

Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Administrative Court dismissed the taxpayer's appeal regarding the assessment of supplementary tax on hidden dividends distributed to a fiduciary company's shareholders. The court found that dividends were effectively paid to the shareholders in the form of the share purchase price, violating the principle of tax neutrality. Consequently, the tax authority was granted the right to recover the tax from the shareholders rather than the company.

Legislator headnote

AI generated

Verotuslaki 57 § 1 mom; Laki yhtiöveron hyvityksestä 6 §: The court established that dividends distributed to a fiduciary company's shareholders in the form of a share purchase price are taxable as hidden dividends, and the tax liability falls on the shareholders.

Keywords

AI generated

hidden dividends fiduciary company share purchase price supplementary tax tax neutrality Verotuslaki yhtiöveron hyvitys

Cited Legislation

AI generated

Verotuslaki 57 § 1 mom

Laki yhtiöveron hyvityksestä 6 §

Laki yhtiöveron hyvityksestä 6 §

Cited Case Law

AI generated

KHO:n päätös 13.1.2000 taltionumero 35

KHO:n päätös 13.1.2000 taltionumero 35.

AI generated

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_1997_73

Supreme Administrative Court dismissed tax appeal regarding shareholder liability for company debts under Finnish Tax Act.

kho-precedent_1997_101

Supreme Administrative Court reduced taxable income by 20% for tax evasion disguised as share sale.

admin_2008_hameenlinna__119

First home tax exemption applies to the whole property even if only half is owned at the time of transfer.

admin_1988_turku-and-pori-county__323

Administrative court allows employee stock option difference as taxable salary for advance tax purposes.

Full text

Taseyhtiöksi rakennetulle yhtiölle voitiin maksuunpanna

täydennysvero taseyhtiön osakekannan myyjille osakkeiden

kauppahinnan muodossa jaetuksi katsotusta peitellystä osingosta.

Verovuosi 1992.

Verotuslaki 57 § 1 mom

Laki yhtiöveron hyvityksestä 6 §

KHO:n päätös 13.1.2000 taltionumero 35. Ei muutoksenhakulupaa