Legal Alerts / 20 Jun 2011

Legal Alert – Change of generation – New case law on donations to limited liability companies

In its judgement given on 18 May 2011 (KHO:2011:44) the Finnish Supreme Administrative Court ruled that donations made to a limited liability company in connection with a change of generation make the company, and not its owner liable to pay taxes. Thus, the gift tax was to be paid according to tax class II. The ruling is significant because according to established case law,  authorities’ directions as well as opinions expressed in legal literature, the gift taxation of a donation made to a limited liability company owned by the donator’s near relative has traditionally been imposed on  the owner of the company.

Read more »

Share on LinkedInTweet about this on TwitterShare on Facebook