Finland should adopt tackling tax evasion as a priority of its European policy, believes Paavo Arhinmäki, the chairperson of the Left Alliance.Paavo Arhinmäki, the chairperson of the Left Alliance, has urged the Government to revise the legislation on the taxation of companies in order to curb tax evasion.

In particular, the opposition leader directed his words to Antti Rinne (SDP), the Minister of Finance.

Arhinmäki on Saturday commented on a recent ruling delivered by the Supreme Administrative Court, according to which the internal loans of corporations operating in two different countries are exempt from tax.

“This is likely to result in the tax authorities having to revise their practices also with respect to other companies,” Arhinmäki viewed in a bulletin.

“The interpretation of the court brings about an immediate need for legislative changes, but the problem is greater than this one detail. Finland must adopt curbing tax evasion through, for example, national accounting systems as a priority of its European policy, as is stated in the original government programme of [Jyrki] Katainen (NCP). In addition, automatic exchange of tax information is needed,” he continued.

Today, Arhinmäki reminded, over half of global trade takes place within multinational corporations.

“Large corporations report their profits for accounting purposes in countries with low taxes and a weak system instead of paying taxes where the profits have been really made. Tax evasion erodes the financial footing of the welfare state and the position of smaller companies, which are no longer able to compete with the major corporations that take advantage of the system,” the opposition leader argued.

Jaana Savolainen – HS
Aleksi Teivainen – HT
Photo: Markku Ulander / Lehtikuva