EU Court orders Finland to re-examine taxation of foreign company cars
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Finland has been ordered not to levy taxes on cars that are provided as a work-related benefit if the cars are acquired in other European Union member states, unless the cars are primarily driven in Finland.
A typical situation that the ruling would apply to would be a resident of Northern Finland who works on the Swedish side of the border for a Swedish company that offers a company car as a perk of the job.
According to a ruling given on Thursday by the Court of Justice of the European Communities, Finland has violated the treaty establishing the EU by systematically forbidding people living in Finland from driving a car that is a job perk on business and work-related matters in Finland, if the car is registered in another EU member state.
The issue was brought before the court by the European Commission, which feels that present Finnish rules violate the free movement of labour. The ruling is forcing the Ministry of Finance to consider whether or not Finland will have to amend its law on car taxation. "The feeling is that there is no need for any significant changes", says Merja Sandell, an official at the taxation department of the Finance Ministry.
The Ministry of Finance must now consider the limits of what constitutes "systematic use" of a car.
Under the decision, Finland can require that a company car provided by an employer in another EU country be registered and taxed in Finland, only if it is used "primarily" in Finland.
Helsingin Sanomat
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| 24.2.2006 - TODAY |
 EU Court orders Finland to re-examine taxation of foreign company cars
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