Day 15 -News bulletin: No changes expected to Korvatunturi gift tax procedure

According to Elvish News Agency (ENA), the discussions between OECD’s Tax Inspectors Without Borders (TIWB) and the Korvatunturi Financial & Fiscal Board of Executives (KF&FBoE) have now been finalized with a mutually positive outcome.

The Chairman of the KF&FBoE, Mr Yule Lad, commented that the twenty-four-day negotiations were carried out in a joyful and merry atmosphere. “Especially pleased we were of the brisk behavior of the TIWB officials. I am certain this will be greatly appreciated by our precedent, Mr. S. Nicholas.” summarized Mr. Lad of the past 3,5 week period.

The main topics of the discussions were Korvatunturi’s unique provisions, such as the gift tax wrapper deduction as well as the regional handicraftsman tax exemption for gift purposes , better known as “ Elf-craft-exemption ”. The provisions remained unaltered – which means no tax will be payable for such gifts - provided the general requirements are completely fulfilled:

First, the recipient of such gift may only be a person of good and courteous behavior , and second, the gift in question may only be opened on nationally approved gift opening day (24 th or 25 th of December). It should be noted, that if the gift is prepared and appointed to this type of a recipient prior to approved opening days , it needs to be stored under a Christmas tree until this time. Additionally, the forthcoming recipient may not express any authority over this gift until the opening day is at hand. If these requirements are violated, the exemption expires and there shall be much wailing and gnashing of teeth.

The most problematic part of the negotiations was the possibility of swapping the contents of the gift within the wrapping shell. This was finally resolved in a way, that if no visible and physical breach of wrapping paper can be detected, the content may be swapped inside the wrapping shell. Should this swap, however, take place in such a way that the gender of the recipient may change, this is to be announced by accordingly colored bow – blue for men and pink for women.

From all of us, to all of you – a very, Merry Christmas!

Fiscales Oy / Fondia Tax

Notice: Before participating in any more complex gift exchange operations, we strongly recommend to contact your local gift tax experts before entering into concrete actions.