The Administrative Court of Helsinki (Helsingin hallinto-oikeus) gave its decision on 29 May 2013 in the case of 13/0844/4. Details of the decision are summarized below.
(a) Facts. A Finnish company (FIN Co) paid interest on a hybrid loan taken from its parent company resident in Luxembourg (LUX Co) and owning 95.7% of the share capital in FIN Co. The Finnish tax authorities as part of the normal tax procedure made a transfer pricing (TP) adjustment and reclassified the hybrid loan as a …