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SAC To Hear Tax Cases
Amendments to the regulations concerning the system of appeal in taxation cases have been proposed in the recent government bills. Further, preliminary rulings with regard to income taxation will become appealable and the scope of leave to appeal will be extended. Taxand Finland analyses these amendments and how they will speed up the taxation procedure.
According to the proposal, it should become possible to claim for adjustment directly to the Supreme Administrative Court (SAC) against the Board of Adjustment's preliminary rulings on income tax, real estate tax and estate & gift taxation, instead of the Administrative Court. Such an amendment will speed up establishing case law on the interpretation of the law.
The present procedure of preliminary rulings with regard to income taxation would be replaced by the possibility to claim for adjustment against preliminary rulings. Consequently the rulings would become appealable in the same way as other preliminary rulings passed by the Tax Administration. Thus the three step system of appeal now in force can be applied to preliminary rulings and tried before the SAC as a last instance.
Accordinging to the proposal the SAC would not automatically hear the appeals relating to the tax loss applications. This means that leave to appeal must be separately applied for and received from the SAC, before any procedure in the SAC.
Speeding up the taxation procedure will make Finland a more attractive market for multinationals to do buisness in. However, it should be noted that the Finnish government stresses the fact that the claims for adjustment against the preliminary ruling should be looked upon as an exception and used only to establish a point of law. Therefore not every case will be heard by the SAC.