News

Hannes Snellman Counsel to a Tax Payer Receiving a Positive Advance Ruling from the Central Tax Board on the Right to Deduct VAT on Transaction Expenses Relating to a Sale of Shares of a Mutual Real Estate Company

13 June 2018

Hannes Snellman’s tax team has assisted a client in obtaining a positive advance ruling from the Central Tax Board on the right to deduct VAT on transaction expenses relating to a sale of shares of a mutual real estate company (“MREC”). In the case, the company had requested that the Central Tax Board give an advance ruling on whether the company has the right to deduct VAT expenses deriving from professional services, such as legal and financial advisory services and commission fees, acquired in connection with the sale process of the MREC.

The advance ruling has clarified the former, rather vague tax practice, which has been unfavourable for tax payers in many respects so far. The advance ruling is not yet legally binding as the Tax Recipients’ Legal Services Unit has appealed to the Supreme Administrative Court. However, based on the advance ruling, it may be possible for companies that have sold shares of an MREC to correct their VAT returns (for the time period the VAT returns are open for reassessment) and deduct the VAT on professional services acquired in connection with the sale process. Hannes Snellman’s tax team is happy to tell you more about the matter and advise you in correcting your VAT returns.

Please feel free to contact Petri Saukko or Matleena Pälve, who constituted our core tax team in this case.