Finland Tax Agency Posts Preliminary Ruling Clarifying Taxation of Investments in Feeder, Master Funds

The Finnish Tax Administration June 3 posted online Central Tax Board Preliminary Decision No. KVL:2026/15, clarifying the taxation of investment in feeder and master funds. The taxpayer, a business, invested in a feeder fund that invested in a master fund which invested in U.S. equities. The funds used U.S. Generally Accepted Accounting Principles (GAAP). The taxpayer inquired concerning tax treatment. Upon review, the Central Tax Board found that: 1) insofar as the value of remaining inventories was restored at the end of a subsequent tax year, tax applied to the amount correlating to the deduction provided for the reduction in ...