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Helsingin HAO 01.10.2012 12/0945/1 AI generated

Voluntary fire association's water rescue service income taxed as business income, not exempt public welfare activity.

Case Number Helsingin HAO 01.10.2012 12/0945/1
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
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Legislator summary

AI generated

The Administrative Court ruled that the voluntary fire association's water rescue services constituted taxable business income rather than exempt public welfare activity. The court found that while the service related to the association's general purpose, it was a standard commercial service available from other providers, creating a competitive distortion if tax-exempt. Consequently, the court determined the income must be treated as business revenue under the Income Tax Act.

Legislator headnote

AI generated

Arvonlisäverolaki 1 § 1 mom 1 kohta; Tuloverolaki 23 § 1 ja 3 mom: Income derived from a voluntary fire association's water rescue services is taxable business income because the activity is a standard commercial service that does not directly advance the association's general welfare purpose.

Keywords

AI generated
voluntary fire association water rescue service business income taxation value added tax exemption competitive distortion public welfare activity income tax act

Cited Legislation

AI generated
Value Added Tax Act section 1, paragraph 1, point 1
Arvonlisäverolaki 1 § 1 mom 1 kohta ja 4 §
Income Tax Act section 23, paragraphs 1 and 3
AI generated
kho-precedent_1997_36
VAT input tax deduction denied for expenses incurred before the taxpayer's establishment date.
kho-precedent_2015_174
Court allows charity cafe income as tax-free due to volunteer work and lack of competition.
ECLI:FI:KHO:2024:53
Supreme Administrative Court denies VAT group formation for a company providing financial services to exempt healthcare firms.
kho-precedent_2009_42
Supreme Administrative Court dismissed VAT appeal; municipalities acting as authorities do not owe VAT on mutual services.
kho-precedent_2013_70
Tax exemption denied to charity for ambulance service due to significant harm to competitors.

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Full text

Verohallinto oli rekisteröinyt A:n Vapaaehtoinen Palokunta ry:n arvonlisäverovelvolliseksi yhdistyksen varainhankintana harjoittamasta vedenajopalvelusta. Hallinto-oikeus katsoi, että vedenajo oli tavanomainen palvelu, joka voi olla ostettavissa myös muilta palveluntarjoajilta kuin vapaaehtoiselta palokunnalta. Siten yhdistyksen myymien vedenajopalvelujen verottomuus olisi ollut omiaan vääristämään kilpailua. Vaikka vedenajotoiminnalla oli yhteys vapaaehtoisen palokunnan yleishyödylliseen toimintaan, se ei edistänyt välittömästi yhdistyksen yleishyödyllisen tarkoituksen toteutumista. Vedenajotoiminnasta saatua tuloa oli pidettävä yhdistyksen elinkeinotulona.

Arvonlisäverolaki 1 § 1 mom 1 kohta ja 4 §

Tuloverolaki 23 § 1 ja 3 mom