Krogerus represented Sagax Finland in legal proceedings regarding transfer tax liability on construction-related loans in connection to the acquisition of non-mutual real estate companies

Krogerus successfully represented Sagax Finland in legal proceedings before the Administrative Court regarding transfer tax liability on construction-related loans in connection with the acquisition of the shares in (non-mutual) real estate companies.

Pursuant to a legally binding decision issued by the Administrative Court, since the non-mutual real estate companies' construction-related loans were not allocated to shares pursuant to the articles of association of the companies and the shareholders were not legally obligated to service or repay the loans on behalf of the company, or otherwise responsible for the loans pursuant to any decision, shareholders' agreement or any other undertaking, such loans cannot be considered construction loans within the meaning set out in the Finnish Transfer Tax Act and therefore are not taken into account when determining the tax base.

In line with the Administrative Court's positive decision, the Tax Administration has decided to refund the paid transfer tax on construction-related loans in total EUR 695 thousand plus interest.

The Krogerus team was led by Partner Samu Lassila and he was assisted by Senior Associate Jemiina Pohja.