€235m unreported taxes spotted last year

The Tax Administration found a total of €235 million in unreported taxes in its shadow economy control measures last year, said Finnish Tax authority in a press release on Tuesday.

Criminal cases completed by the police caused crime damage worth nearly €200 million.

The social impact of the prevention of economic crime carried out by Customs was €18 million, and based on tax audits, over €4 million were collected through realisation of recovery.

The current action plan for tackling the shadow economy and economic crime is the eighth year in a row.

Janne Marttinen, Director of the Tax Administration’s Grey Economy Information Unit, said that the projects of the action plan have developed the cooperation between multiple authorities and the exchange of information between authorities. This helps uncover the shadow economy, address abuse, and thereby prevent losses caused to society.

“Securing society's assets is particularly important in the current economic situation. When we combat the shadow economy and economic crime, we improve more efficient use of shared assets. However, money is not the only issue. Compliance with shared rules and effective cooperation between authorities benefit society as a whole,” said Marttinen.

The current action plan will end at the end of this year. Marttinen hopes that the new Government will continue combating the shadow economy and economic crime.

“The shadow economy is becoming more and more complex, and especially in an economic downturn, the shadow economy and the tax gap typically increase. The action plan for tackling the shadow economy and economic crime provides an opportunity for close cooperation between authorities and helps address changes in the operating environment,” said Marttinen.

Meanwhile, a total of 2,085 economic crime cases were recorded by the police. This is 6 per cent more than in 2021.

Extortionate work discrimination grew for the fourth year in a row. A total of 74 cases were recorded by the police last year.

Violations of sanctions against Russia brought regulation offences to a peak: last year, Customs launched nearly 300 preliminary investigations on sanction violations.

The number of bankruptcy petitions is on the rise. In 2022, bankruptcy proceedings were launched nearly 13 per cent more often than the year before.

The Tax Administration’s tax control discovered a total of €235 million in unreported taxes.

60 per cent of the Uusimaa ELY Centre’s interim decisions on foreign employees seeking to become entrepreneurs were acceptances. The number of acceptance decisions rose by 5 per cent from the previous year.