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State aid: Commission opens in-depth investigation into Finnish plans to grant temporary tax exemption for sales of agricultural land
29.03.2010 10:54 "Agro Perspectiva" (Kyiv) —
The European Commission has opened a formal investigation under the EU State aid rules into a Finnish scheme to grant temporary exemption from capital gains tax for sales of agricultural land.
The Commission has doubts whether the measure would be compatible with EU law. Opening a formal investigation allows the Commission to examine the measure in detail and gives interested third parties an opportunity to submit comments.
The Finnish authorities plan to grant tax relief to natural persons or estates of deceased persons selling agricultural land in the 2009 and 2010 tax years. In order for the seller to be eligible for this tax exemption, the agricultural land has to be sold to a practising farmer on condition that the buyer continues cultivating it. The objective is to increase ownership of agricultural land by active farmers, thereby creating larger and better structured farms.
The Commission’s preliminary assessment concludes that the scheme notified appears to fulfil the criteria for being considered State aid. The Commission decision expresses doubts whether the scheme in question would be compatible with the applicable State aid rules and invites the Finnish authorities to clarify a number of points about its plans.
The non-confidential version of the decision will be made available under case number N 417/2009 in the State aid register on the DG Competition website once any confidentiality issues have been resolved.
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