Supreme Administrative Court’s Precedent on the Implementation of a MAP Result

In this article the author explains and analyses the Finnish Supreme Administrative Court’s ruling SAC 2023:32 issued on 17 April 2023. The case considered the deductibility of a provided group contribution in a situation where the taxable result of a Finnish company A Oy was reduced in a reassessment due to a transfer pricing adjustment in France. The Supreme Administrative Court ruled that based on a MAP resolution, a loss to be carried forward had to be assessed for A Oy even if according to the national tax provisions on group contribution a provided group contribution could not lead to a taxable loss. The case considered tax year 2010 but, as analysed by the author, is relevant also after the implementation of the Dispute Resolution Directive.