Administrative court dismissed tax objection regarding tax-free sale of farm land by former farmer.

The Administrative Court of Turku dismissed the tax officer's objection against a taxpayer who sold his farm to his daughter and son-in-law in 2005. Although the taxpayer had ceased farming in 1997, the court ruled that the tax exemption under Section 48(1)(3) of the Income Tax Act does not require active farming immediately prior to the sale. The court held that the statutory conditions for the tax-free treatment were met based on the nature of the transaction and the taxpayer's history.