Legislator Case Law & Legislation
KHO:1997:9 AI generated

Court allows deduction of Chilean dividends for tax comparison despite lack of tax treaty.

Case Number KHO:1997:9
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted

Legislator summary

AI generated

The Supreme Administrative Court allowed the deduction of Chilean dividends when comparing Finland's and Chile's tax levels, despite the absence of a tax treaty between the two nations. The taxpayer argued that these dividends constituted taxable income under the Law on Taxation of Shareholders of Foreign Intermediary Companies, while the opposing party contended that the lack of a treaty precluded such treatment. The court ruled in favor of the taxpayer, establishing that the statutory definition of taxable income for foreign intermediaries takes precedence over the absence of a specific tax agreement.

Legislator headnote

AI generated

Law on Taxation of Shareholders of Foreign Intermediary Companies § 2; Law on Taxation of Shareholders of Foreign Intermediary Companies § 4: The absence of a tax treaty does not prevent the classification of foreign dividends as taxable income for the purpose of comparing tax levels under the specific provisions governing foreign intermediary companies.

Keywords

AI generated
foreign intermediary companies tax treaty absence dividend taxation tax level comparison shareholder taxation Chile Finland tax taxable income definition

Cited Legislation

AI generated
Law on Taxation of Shareholders of Foreign Intermediary Companies § 2
Law on Taxation of Shareholders of Foreign Intermediary Companies § 4
AI generated

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Full text

Suomalainen A Oy omisti tytäryhtiöitä Chilessä, jonka kanssa Suomella ei ole verosopimusta. Chileläisen tytäryhtiön toiselta chileläiseltä tytäryhtiöltä saamat osingot otettiin huomioon laskettaessa sitä tuloa, jonka perusteella määräytyvien verojen perusteella verrataan yhtiön ulkomaisen asuinvaltion ja Suomen verotuksen tosiasiallista tasoa. Osingot luettiin myös A Oy:n ulkomaisten väliyhteisöjen osakkaiden verotuksesta annetussa laissa tarkoitetuksi veronalaiseksi tuloksi.

Äänestys 4-1.

Ennakkotieto vuosille 1995 ja 1996.

L ulkomaisten väliyhteisöjen osakkaiden verotuksesta 4 § 2 mom