References/22 Aug 2016
Borenius advised taxpayers in a landmark case handled by Finnish Supreme Administrative Court
We advised the taxpayers in a landmark case where the Supreme Administrative Court rejected the claims of the Tax Recipients’ Legal Services Unit on application of general tax avoidance provision to reorganizations carried out between 2004 and 2008. Tax Recipients’ Legal Services Unit had claimed that the liquidation of taxpayers’ holding companies would have been carried out for the purposes of avoiding tax. The Supreme Administrative Court ruled that the liquidation is an acceptable method to close down a firm and that Tax Recipients’ Legal Services Unit had not proved that the reorganizations should have been regarded as serial transactions as interpreted in the Finnish tax law.
See the decision KHO:2016:115 for details (in Finnish).