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KHO:1997:31 AI generated

Bank's forced auction machine sales constitute taxable business activity under VAT law.

Case Number KHO:1997:31
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Supreme Administrative Court ruled that a bank's acquisition of machinery via forced auction constituted taxable business activity. The court found the bank operated in a competitive market against other auction participants and sellers, distinguishing this from exempt financial services. Consequently, the bank was required to pay VAT on the subsequent sale of the machines.

Legislator headnote

AI generated

Arvonlisäverolaki 41, 42, 43 ja 61 luku: When a bank acquires goods through forced auction to secure claims and sells them in a competitive market, the activity is deemed taxable business operations rather than exempt financial services.

Keywords

AI generated
forced auction sales bank business activity VAT taxable transaction competitive market status exempt financial services

Cited Legislation

AI generated
Arvonlisäverolaki 1 §
Arvonlisäverolaki 41 §
Arvonlisäverolaki 42 §
Arvonlisäverolaki 43 §
Arvonlisäverolaki 61 §
AI generated
admin_1995_uusimaa-county__627
Court holds that a federation's shared financial services constitute taxable business activity requiring VAT.
kho-precedent_2001_63
Finnish Supreme Administrative Court ruled MBA costs are business expenses, not salary, exempting employer from advance tax withholding.
admin_2022_turku__1655
Administrative court dismissed transfer tax claim where donor sought advance ruling on gift tax exemption.
admin_2012_turku__735
Sale of third home by long-term residents deemed taxable business income, not tax-free main residence transfer.
admin_2014_eastern-finland__5482
Tax court rules that a savings bank changing to a foundation during a business transfer is not dissolved for tax purposes under section 24 of the Income Tax Act.

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Full text

Pankki osti pakkohuutokaupassa koneita, joihin sillä oli ollut yrityskiinnitys. Vaikka hankinta tapahtui saatavien turvaamistarkoituksessa, tällä tavoin tapahtuvan tavaroiden ostamisen ja myymisen katsottiin olevan pankin säännönmukaista toimintaa ja tapahtuvan liiketoiminnan muodossa. Lisäksi pankki toimi tällöin kilpailutilanteessa muiden huutokauppaostajien ja vastaavia tavaroita myyvien elinkeinonharjoittajien kanssa. Toiminta ei ollut arvonlisäverolain 41-43 §:ssä tarkoitettua verotonta rahoituspalvelua. Koska koneet ostettiin verollista liiketoimintaa varten, niiden myynti ei ollut verotonta lain 61 §:n perusteella. Pankin oli suoritettava koneiden myynnistä veroa. Ennakkotieto ajalle 1.1.1995-31.12.1996.

ArvonlisäveroL 1 §

ArvonlisäveroL 41 §

ArvonlisäveroL 42 §

ArvonlisäveroL 43 §

ArvonlisäveroL 61 §