25/03/2010 (Agence Europe) - On Thursday 25 March, the European Commission opened a formal investigation into a Finnish scheme to grant temporary exemption from capital gains tax for sales of agricultural land. After a preliminary investigation, the Commission had doubts whether the measure would be compatible with EU law on state aid. 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 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. (O.L./transl.fl)