The acquisition cost of Lemminkäinen shares converted as YIT shares
The acquisition cost of shares acquired as merger compensation is considered equal to that of pre-merger shares per acquisition. This means that the acquisition cost of YIT shares acquired as merger compensation is determined by the old LMK shares’ acquisition tranches. In terms of volume, the YIT shares acquired as merger compensation should be proportioned to each LMK share acquisition tranche. The acquisition cost for each YIT share is calculated on the basis of the corresponding LMK share acquisition tranche at the time of acquisition. When calculating the acquisition cost of shares acquired as merger compensation, the ratio by which LMK shares were compensated for with YIT shares should be taken into account.
Using an assumed cost of acquisition instead of actual cost will only become relevant when shares are handed over and the resulting profit from assignment is taxed. At such a time, a shareholder may instead of the actual acquisition cost subtract an assumed cost from the sale price (20% or 40% in case the share ownership has lasted for more than 10 years). If actual acquisition cost is used, the taxpayer must themselves present the Tax Administration with the original acquisition cost, on the basis of which the YIT share acquisition cost can be calculated. In practice, it is sensible to use an assumed cost if this results in a taxable profit from assignment that is lower than using the actual and already paid acquisition cost would.
When selling YIT shares acquired as merger compensation, the “first in, first out” principle is applied, meaning that shares are considered as handed over in their order of acquisition. An exception to this rule is made when a shareholder has shares in various book-entry accounts and can indicate from which account the shares have been sold.