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KHO:1997:80 AI generated

Shareholder's forest income taxed under s. 43 Tax Act deemed capital income upon surplus distribution.

Case Number KHO:1997:80
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 upheld the tax authority's decision to classify the shareholder's forest income as capital income under section 43 of the Income Tax Act. The court found that the cooperative's rules mandated surplus distribution based on the monetary value of timber purchased from members during the fiscal year. Consequently, the distribution was legally treated as capital income rather than ordinary income for tax purposes.

Legislator headnote

AI generated

Tuloverolain 43 §; The distribution of surplus to a shareholder in a cooperative, calculated based on the value of timber purchased by the cooperative from the shareholder during the fiscal year, constitutes capital income under section 43 of the Income Tax Act.

Keywords

AI generated
cooperative surplus distribution forest income taxation capital income classification Income Tax Act section 43 shareholder timber purchase

Cited Legislation

AI generated
Tuloverolain 43 §
Osuuskunnan jäsenen metsätalous kuului puun myyntitulojen verotuksen piiriin ja sitä verotettiin tuloverolain 43 §:n mukaisesti.
AI generated
kho-precedent_1997_85
Cooperative member's forest income taxed under farmland tax law excluded from profit distribution.
admin_1998_northern-karelia-county__116
Tax court allows forest owner to deduct travel costs as additional living expenses under Income Tax Act.
kho-precedent_2001_54
Individual cannot claim forest deduction for share of partnership income from forest assets held in partnership.
admin_1991_northern-karelia-county__766
Administrative court dismisses tax exemption claim for forest income when a perpetual right holder is deceased.
admin_1989_central-finland-county__257
Court dismissed tax deduction for timber from own forest as no real expenditure occurred for construction.

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Full text

Osuuskunnan jäsenen metsätalous kuului puun myyntitulojen verotuksen piiriin ja sitä verotettiin tuloverolain 43 §:n mukaisesti. Osuuskunta suunnitteli sääntöjensä mukaan ylijäämäpalautusta niin, että jako toimitettaisiin sen puutavaramäärän raha-arvon mukaisesti, jonka osuuskunta oli tilivuonna jäseniltä ostanut. Ylijäämäpalautus katsottiin tuloverolain 43 §:n nojalla jäsenen metsätalouden pääomatuloksi. Ennakkoratkaisu 1996 ja 1997.

Äänestys 4-1

Tuloverolaki_43_§