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KHO:2000:75 AI generated

Tax court allows deduction of bank director's settlement payment for negligent loan granting as business expense.

Case Number KHO:2000:75
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 allowed the deduction of a lump-sum payment made by a former bank director to a bank suffering loan losses. The director argued the payment was a necessary business expense for loss prevention, while the tax authority contested it due to potential conflicts of interest. The court ruled that without evidence of an interest relationship with the loan recipients, the payment constituted a legitimate business cost deductible under the Income Tax Act.

Legislator headnote

AI generated

Tuloverolaki 29 § 1 mom.; A settlement payment made by a former bank director to a bank for negligent loan granting is deductible as a business expense if no interest relationship exists between the director and the loan recipients.

Keywords

AI generated
income tax deduction business expense bank director liability lump sum payment negligent loan granting conflict of interest Tuloverolaki

Cited Legislation

AI generated
Tuloverolaki 29 § 1 mom.
Tuloverolaki 29 § 1 mom.
AI generated
kho-precedent_2000_76
Former bank head's pension tax deduction for loss compensation is denied due to personal gain from loans.
kko-precedent_1997_111
Supreme Court reduces damages for bank board negligence, allowing settlement due to disproportionate liability and inability to pay.
kko-precedent_1999_12
Supreme Court allows bank's claim against former savings bank board members for damages caused by loan negligence.
kko-other_2001_2306
Supreme Court dismissed claim against bank executives for loan losses, ruling liability requires direct fault or breach of duty.
kko-precedent_2000_58
Supreme Court partially allowed appeal to reduce damages for savings bank manager's breach of duty.

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Full text

Pankki, jolle oli aiheutunut noin 40 miljoonan markan kiinteistöluotoista luottotappioita noin 27 miljoonaa markkaa, oli tehnyt jo eläkkeelle siirtyneen entisen pankinjohtajansa A:n kanssa sopimuksen, jonka mukaan A maksoi kertakorvauksena 265 000 markkaa mainittujen luottojen huolimattomasta myöntämisestä pankille aiheuttamastaan vahingosta. Asiassa ei ilmennyt, että A:lla olisi ollut intressiyhteyttä kysymyksessä oleviin luotonsaajiin. A sai verotuksessaan vähentää tuloistaan pankille maksamansa kertakorvauksen tulon hankkimisesta tai säilyttämisestä johtuneena menona.

Verovuosi 1994. Äänestys 3-2.

Tuloverolaki 29 § 1 mom.