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KHO:1997:79 AI generated

Finnish Supreme Administrative Court allows corporate group loan deduction as business expense under tax law.

Case Number KHO:1997:79
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The court allowed the deduction of a loan provided by a subsidiary to a parent company within a corporate group. The taxpayer argued that the loan, matching the amount of an internal grant, constituted a business expense under the Tax Act. The court ruled that the transaction was genuine and performed for business purposes, thereby permitting the deduction.

Legislator headnote

AI generated

2 § of the Act on Corporate Group Loans; A loan between companies in a corporate group is deductible as a business expense if it is granted for business purposes and meets the statutory requirements.

Keywords

AI generated
corporate group loans tax deduction business expense Finnish tax law internal transfers

Cited Legislation

AI generated
2 § of the Act on Corporate Group Loans
AI generated
ECLI:FI:KHO:2023:32
Supreme Administrative Court allows appeal to prevent double taxation by requiring loss recognition for group aid deduction.
admin_1993_uusimaa-county__312
Court allows parent company's consortium subsidy deduction after ruling subsidiary continued business operations.
ECLI:FI:KHO:2022:128
VAT deduction denied for parent company when financing and insurance services are separate from taxable consulting services.
kho-precedent_2014_33
Supreme Administrative Court allows tax adjustment removal where transfer price evidence was unreliable but substance value was used.
admin_2011_helsinki__74
Administrative court denied loss deduction for intercompany loan after corporate ownership change, ruling group status requirements not met.

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Full text

B yhtiön, jonka toimialana oli osakkuusyritysten konsultointi, osakekannasta omisti yli 90 % konsernin rahoitusyhtiönä toiminut emoyhtiö C. Yhtiö B omisti vastaavasti yli 90 % tytäryhtiö A:n osakekannasta. Verovuoden aikana oli yhtiö B saanut tytäryhtiö A:lta 3.000.000 markkaa konserniavustusta, josta se oli välittänyt 2.500.000 markkaa edelleen emoyhtiö C:lle. Samalla kun yhtiö B oli saanut yhtiö A:lta tuon konserniavustuksen, oli yhtiö B myöntänyt yhtiö A:lle samansuuruisen lainan. Kun kaikki yhtiöt A, B ja C olivat verovuoden aikana harjoittaneet liiketoimintaa, katsottiin konserniavustus annetuksi konserniavustuksesta verotuksessa annetun lain 2 §:n mukaisesti liiketoimintaa varten ja siten vähennyskelpoiseksi liikemenoksi. Verovuosi_1993. D:3026/2/96