Finland Supreme Administrative Court Clarifies Taxation of Business Income

The Finnish Government Legal Database July 5 posted online Decision No. KHO: 2022:88, clarifying the taxation of business income concerning a merger. The taxpayer company issued a convertible bond, which was redeemed by an insurance company. A wholly-owned subsidiary company of the taxpayer acquired the bond from the insurance company. The taxpayer and the subsidiary subsequently merged, and the taxpayer counted the difference between the nominal value of the bond and the acquisition cost received as merger income. The tax board rejected the taxpayer’s adjustment claim, and imposed a tax increase. Upon appeal, the Supreme Administrative Court explained the calculation ...