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On 3 February 2026, the Supreme Administrative Court (SAC) denied the appeal application filed by the Tax Recipients' Legal Services Unit in the case concerning the electricity sector's Profit Tax Act. This decision means that the previous decision of the Helsinki Administrative Court became final. The Administrative Court ruled that the key provisions of the act are in conflict with EU law and thus unenforceable.
Castrén & Snellman represented Fortum Power and Heat Oy in the case on the relationship between EU law and national tax legislation.
According to the decision of the Administrative Court, the key provisions of the Profit Tax Act (the Act on Temporary Profit Tax on Electricity and Fossil Fuel Sectors) are in conflict with EU law. In particular, the Administrative Court ruled that the provisions on the amount and calculation of the tax must be disregarded, which renders the Profit Tax Act practically irrelevant.
The decision sets a significant precedent that strengthens the primacy of EU law and emphasises the diligence required of legislators also in times of crisis. For more details on the decision of the Administrative Court, see our previous article on the subject.
Taxpayers can claim for adjustment
Taxpayers to whom the Profit Tax Act was applied have the opportunity to claim for adjustment of their taxation based on the ruling. Our experts are happy to help if you wish to discuss adjustment claims or the practical ramifications of this decision for your company.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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