Roschier represented a client in a landmark Supreme Administrative Court case concerning whether the same assets of monetary value can be subject to both gift tax and income tax

Recent work|October 1, 2025

Our tax experts assisted a client in the Finnish Supreme Administrative Court ruling KHO 2025:64 issued last week. The situation was about whether the donation of a certain savings life insurance policy to the policyholder’s spouse was fully subject to taxable capital income for the donation receiver.

The lower court had issued a negative decision, which was appealed to the Supreme Administrative Court. According to the Supreme Administrative Court’s decision, the donated assets were already subject to gift taxation, so only the portion of the amount received by the donation receiver upon redemption of the insurance policy exceeding the fair value of the insurance policy used in gift taxation was taxable capital income for the donation receiver.

The case is very important because it confirms that the same assets should not be subject to both gift and income taxation. The case also strengthens the view that in certain situations, the strict interpretation of the related tax legislation can be set aside if the result would otherwise be disproportionate and would create double taxation.

Our tax experts are happy to discuss the case and its possible implications further.

Read the Finnish Supreme Administrative Court ruling KHO 2025:64 here.