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KHO:2000:6 AI generated

Court dismissed deduction of car loan interest for tax-free mileage allowance under Finnish Income Tax Act.

Case Number KHO:2000:6
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Dismissed
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Supreme Administrative Court dismissed the taxpayer's claim to deduct car loan interest from taxable income. The court found that the loan was not a 'revenue-generating debt' under the Income Tax Act because the vehicle was used for tax-free mileage compensation rather than generating taxable income. Consequently, neither the loan principal nor its interest could be deducted from the taxpayer's capital income.

Legislator headnote

AI generated

Tuloverolain 58 § 1 mom. 3 kohta ja 31 § 4 mom.: A loan incurred to acquire a vehicle used for tax-free mileage compensation does not constitute a revenue-generating debt, thereby precluding the deduction of both the loan principal and its interest from capital income.

Keywords

AI generated
revenue-generating debt tax-free mileage allowance loan interest deduction capital income taxation Finnish Income Tax Act vehicle acquisition debt taxable income reduction

Cited Legislation

AI generated
Tuloverolain 58 § 1 mom. 3 kohta
Tuloverolain 31 § 4 mom.
AI generated
admin_1988_uusimaa-county__169
Tax court dismissed tax assessment for travel expenses exceeding actual car usage costs under specific exemption rules.
admin_1996_turku-and-pori-county__175
Court ruled employer's housing allowance for remote work site is tax-exempt if reasonable.
admin_1987_uusimaa-county__200
Investment allowance not treated as tax relief requiring addition to income for discretionary tax assessment.
kko-other_2005_2476
Supreme Court dismisses claim for damages against a debtor based on insolvency and lack of fault.
admin_1999_hameenlinna__1043
Tax court allows employer car expense deductions in final tax based on prior withholding calculations.

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Full text

Piiritarkastaja kulki tarkastuskohteisiin omalla autolla, jonka hankkimiseksi hän oli ottanut velkaa. Hän oli saanut työajoista verohallituksen päätöksen mukaisen verovapaan kilometrikorvauksen, jonka perusteena olevissa laskelmissa otettiin muun ohella huomioon sidotulle pääomalle laskettu 5 %:n korko. Kun otettiin huomioon auton käytön veronalaisen tulon hankkimisessa korvaaminen verovapaasti ja autosta aiheutuvien kustannusten, niihin luettuna hankinta- ja rahoituskustannukset, vähennyskelvottomuus, auton hankintaan liittyvää velkaa ei pidetty tuloverolain 58 §:ssä tarkoitettuna tulonhankkimisvelkana eikä velan korkoja voitu vähentää piiritarkastajan pääomatulosta. Verovuosi 1993 ja 1994. Perustelujen osalta äänestys 3-2.

Tuloverolaki 58 § 1 mom. 3 kohta ja 31 § 4 mom.

Verohallituksen päätös verosta vapaaksi katsottavien matkakustannusten korvausten perusteista ja määristä