New Case Law Concerning Taxation of Change of Generation in Enterprises and Protection of Legitimate Expectations

Finnish tax regulation includes gift and inheritance tax alleviations applicable in donations of business or agricultural activities. These alleviations are normally used in change of generation arrangements. One requirement for application of the provisions is that the recipient or heir actively continues the business or agricultural activity.

The Finnish Supreme Administrative Court issued a ruling (SAC 2018:122) where it further elaborated the required level of participation in business activity. Further, the SAC discussed the Tax Administration’s liability to protect legitimate expectations of the recipient based on an earlier positive advance ruling statement in a situation when legal practice has changed after that ruling.

Read more in Finnish.