Corruption in Finland#Tax avoidance

Finland signed in 2002 the European Council GRECO criminal law against bribery. Finland demanded two exceptions in bribery law that have been signed e.g. in neighbour lands Estonia and Sweden. In May 2019 exceptions were still not taken into force in Finnish criminal law against bribery.[https://suomenkuvalehti.fi/jutut/kotimaa/politiikka/lobbaamisen-harmaa-alue-suomi-ei-tee-vaikutusvallan-kauppaamista-rikollista-ruotsi-ja-viro-toimivat-jo-toisin/ Lobbaamisen harmaa alue] Jarno Liski, Suomen Kuvalehti 24.5.2019 page 9

A 2008 Transparency International report noted a remarkable lack of transparency in Finnish political finance,[http://www.yle.fi/uutiset/kotimaa/oikea/id90735.html Vaalijohtaja: Vaalirahoituslain rikkominen melko yleistä] YLE 15 May 2008 {{in lang|fi}} reinforcing demands for greater transparency; in 2007, the Groupe d'États Contre la Corruption (GRECO) stressed that corruption should be better noticed in election financing.Evaluation Report on Finland on Incriminations, Theme I, s. 21, GRECO 3–7.12.2007 The 2007 Finnish campaign finance scandal erupted the following spring, with nine government ministers and several members of parliament lacking transparency in their election-funding reports. Since the law had no penalties for false fund reporting by elected politicians, the conservative National Coalition Party and rural Centre Party have not demanded the resignations of the convicted politicians. According to the 2009 Act on Candidate Election Funding, presidential candidates, parliamentarians, and deputies must declare all funding for an election campaign; donors of over €1,500 must be named.{{cite web|url=https://www.export.gov/article?id=Finland-Corruption|title=Finland - 9-Corruption|date=2017}}

Two-thirds of state and municipal public servants are appointed from political parties, of which only five percent of Finnish citizens are members. Article 6 of the constitution of Finland states that everyone has an equal right to public jobs, and selection should be based on capability and expertise. The number of political appointments of public servants has been criticized as excessive,[http://yle.fi/uutiset/kotimaa/2012/01/quotpoliittiset_virkanimitykset_ovat_suomalaista_korruptiotaquot_3173067.html "Poliittiset virkanimitykset ovat suomalaista korruptiota"] yle 13 January 2012 {{in lang|fi}} and the parties determine public-sector salaries.

{{See also|2008 Liechtenstein tax affair}}

Prime Minister Jyrki Katainen claimed to fight unreported employment or undeclared employment income but, according to Markku Hirvonen, resources and initiatives in Finland have been insufficient to reach this goal. Two hundred tax officers examined tax havens in Sweden in 2013; 100 officers worked in Denmark, 80 in Norway, and 10–20 in Finland. Although investigations of unreported employment income found Sweden €100 million in previously unpaid taxes, Finland found none. In Sweden, unlike Finland, all international transactions above 150,000 Swedish kronor (about €15,000) are required to be reported to tax officers.{{Cite web|url=https://yle.fi/uutiset/3-6553401|title=Harmaan talouden tutkija: Veroparatiisien tutkintaan ei panosteta Suomessa|date=25 March 2013}}

According to Taloussanomat, Finland loses €320 million in annual taxes to tax havens.[http://www.taloussanomat.fi/yritykset/2013/10/09/suomesta-veroparatiiseihin-320-miljoonaa-vuodessa/201314046/12 Suomesta veroparatiiseihin 320 miljoonaa vuodessa] Taloussanomat 9.10.2013 The business watchdog organization Finnwatch reported that Finnish companies, including the nation's top 20 companies, have 438 subsidiaries in countries classified as tax havens.{{cite web|url=http://yle.fi/uutiset/finnwatch_100s_of_finnish_subsidiaries_in_tax_havens/7016100 |title=Finnwatch: 100s of Finnish subsidiaries in tax havens yle 8.1.2014 |date=8 January 2014 |publisher=Yle.fi |access-date=2014-02-23}}

Germany bought LGT Bank data from Heinrich Kieber in 2008. According to the data, about 20 Finns evaded taxes amounting to €50-60 million; this was the country's largest known tax avoidance case. All names have been kept secret, and authorities have been criticized for not doing enough to prosecute tax evaders.[http://yle.fi/uutiset/kaikkien_aikojen_veronkiertotutkinta_kuivui_kokoon_-_varoja_piilottaneet_suomalaiset_jaavat_ilman_rikosseuraamuksia/6836906 Kaikkien aikojen veronkiertotutkinta kuivui kokoon - varoja piilottaneet suomalaiset jäävät ilman rikosseuraamuksia] yle 18.9.2013[http://yle.fi/uutiset/supreme_court_ruling_hobbles_liechtenstein_tax_probe/6838343 Supreme Court ruling hobbles Liechtenstein tax probe] Yle 19.9.2013

Foreign accounts are legal if taxes are paid. Based on this data, the unpaid taxes on the accounts amounted to more than €10 million in 2013. According to a 21 September 2013 Helsingin Sanomat article, Liechtenstein banks held funds from Casimir Ehrnrooth (UPM). Ehrnrooth's family owns majority shares in companies such as YIT, Jaakko Pöyry, Guggenheim Helsinki Plan and Bertel Paulig, and owns a construction company in Turku.[http://www.hs.fi/talous/Bertel+Paulig+j%C3%A4i+kiinni+veroparatiisitilist%C3%A4/a1381207258042 Bertel Pauligilla veroparatiisitili] 9.10.2013 A9 Jorma Ollila and Kari Stadigh also have investments in Luxembourg.HS-raportti: Luxemburgin veroparatiisi Helsingin Sanomat 22.9.2013 B7-B10

In Finland, total collected annual taxes are €65 billion and the annual fiscal deficit is estimated at €4.6 to €7.7 billion. Unlike Sweden, the country has not fully determined how the tax gap should be assessed. According to Parliamentary Audit Committee chairperson Tuija Brax, "Sweden has been actively addressing this tax gap problem for some time".[http://yle.fi/uutiset/billions_in_finnish_taxes_remain_uncollected/6987794 Billions in Finnish taxes remain uncollected] yle 16.12.2013

Finnish tax authorities began investigating holdings in Liechtenstein in 2008, and 17 Finns paid additional taxes totaling €10 million. Taxpayers made reclamation in Administrative Court. The amount of unpaid taxes is estimated to be high, and decisions of this court are not made public. In two cases shown to reporters, the Administrative Court imposed a payment of about one percent (which conflicts with Tax Administration rules). The court's justification for a very low tax is unknown. In one case, funds sheltered from taxation amounted to €483,000 and the additional tax was €4,350. This extra taxation is paid as interest on the original amount. According to the Supreme Administrative Court of Finland, no other legal procedures are possible when collecting the hidden tax and its one-percent interest rate. Tax officers are untrained in legal issues.[http://yle.fi/uutiset/liechtensteinin_veronkiertojutussa_on_maaratty_hyvin_pienia_veronkorotuksia/6984649 Liechtensteinin veronkiertojutussa on määrätty hyvin pieniä veronkorotuksia] yle 16.12.2013

The Helsinki District Court dropped charges in October 2019 in a suspected €135 million money laundering case through Finnish construction company bank accounts.[https://yle.fi/uutiset/osasto/news/court_drops_all_charges_in_135m_money_laundering_case/11011630 Court drops all charges in €135m money laundering case] YLE News 9.10.2019

Finnish police investigated the financial irregularities of the Youth Foundation. In 2018, foundation chair Perttu Nousiainen received hundreds of thousands of euros from tax-haven firms into his personal accounts. Police suspect the building firm's managers of aggravated tax fraud and other offenses. The trust connected to the Youth Foundation funded Centre Party politicians, in conflict with the law.[https://yle.fi/uutiset/osasto/news/youth_foundation_ceo_quits_amid_police_probe/10114926 Youth Foundation CEO quits amid police probe] YLE News 13.3.2018[https://yle.fi/uutiset/3-10105493 Nuorisosäätiön johtaja sai satoja tuhansia euroja veroparatiisiyhtiöiltä – poliisi selvittää, onko kyse lahjonnasta] YLE 24.8.2016[https://yle.fi/uutiset/3-9114225 Vaalirahakohussa ryvettyneellä Nuorisosäätiöllä ja sen johdolla vaiettuja kiinteistöbisneksiä] YLE 24.8.2016

An audit was conducted in 2012 of a Helsinki construction office, based on corruption concerns. The business works with YIT.[http://omakaupunki.hs.fi/paakaupunkiseutu/uutiset/helsingin_rakennusvirastosta_erityistilintarkastus/ Helsingin rakennusvirastosta erityistilintarkastus HS 16.5.2012 A11] {{webarchive|url=https://archive.today/20120713090746/http://omakaupunki.hs.fi/paakaupunkiseutu/uutiset/helsingin_rakennusvirastosta_erityistilintarkastus/ |date=13 July 2012 }} Six people were arrested in May 2012 by an order from Helsinki District Court, investigating corruption in Helsinki building contracts. The detainees were suspected of accepting bribes. The public HKR-Rakennuttaja purchased services from the construction sector with a value of up to about €100 million per year. Fines may reach about €100,000 over several years.[http://yle.fi/uutiset/6_detained_in_helsinki_construction_bribery_probe/6104382 6 detained in Helsinki construction bribery probe] yle 21 May 2012 Destia, a state-owned company that builds public roads, was investigated for alleged irregularities in January 2013.[http://www.hs.fi/talous/Destiassa+ep%C3%A4ill%C3%A4%C3%A4n+t%C3%B6rke%C3%A4%C3%A4+kavallusta++kaksi+ep%C3%A4illyist%C3%A4+p%C3%A4%C3%A4llikk%C3%B6tasolla+/a1360206383741 Destiassa epäillään törkeää kavallusta – kaksi epäillyistä päällikkötasolla] HS

Former Espoo mayor Marketta Kokkonen and Olavi Louko, director of Espoo's Technical and Environment Services since 2001, were charged with bribery linked to major construction companies in 2010.[http://yle.fi/uutiset/espoo_leaders_face_bribery_charges/5595994 Espoo Leaders Face Bribery Charges] yle 13.07.2010Länsiväylä 1.6.2007,page.6 Bribes were said to be paid from 2004 to 2008. The state ordered Louko to pay a fine of €7,500 .[http://yle.fi/uutiset/espoon_loukon_lahjustuomio_pysyy/6974890Espoon Loukon lahjustuomio pysyy] yle 9.12.2013 On the Espoo board of directors, some Finns voted no confidence in Louko[http://yle.fi/uutiset/espoon_johtokaksikko_jatkaa_tehtavassaan/5611468 Espoon johtokaksikko jatkaa tehtävässään] yle 9.08.2010[http://prod07.tjhosting.com/Espoo/Epadyna/intrakun_e.nsf/3e12a7fcbc9e6736c22569d90040f1cd/89aa055bcb125f3fc22577820026adb1?OpenDocument Board of Directors in 09.08.2010] {{webarchive|url=https://archive.today/20131213160950/http://prod07.tjhosting.com/Espoo/Epadyna/intrakun_e.nsf/3e12a7fcbc9e6736c22569d90040f1cd/89aa055bcb125f3fc22577820026adb1?OpenDocument |date=13 December 2013 }}

In a Parliamentary Ombudsman investigation released in May 2013, Maija Saxlin said that museum director Janne Gallen-Kallela-Sirén was biased in his position on the Guggenheim Helsinki Plan.Oikeusasiamies: Gallen-Kallela-Sirén jäävi Guggenheim-valmistelussa Helsingin Sanomat 18 May 2013 According to Carl Gustaf Ehrnrooth, a major owner of construction companies (including YIT and Pöyry), Gallen-Kallela-Sirén made the proposal for the Guggenheim museum; he was a board member of a company majority-owned by C–G Ehrnrooth, and his wife also worked for the company.Ajatko alas Helsingin taidemuseota, Janne Gallen-Kallela-Sirén? HS 3.2.2012Carl Gustaf Ehrnrooth avasi oven Helsingin Guggenheim-hankkeelle 15 January 2012 When tax havens were criticised and Casimir Ehrnrooth's accounts made public, Helsinki politicians accepted a tax-haven-funded project. The 2007 Finnish campaign finance scandal bribery sentences were overturned in the Helsinki Court of Appeals in late June 2013.[http://yle.fi/uutiset/kanervas_bribery_sentence_overturned/6707229 Kanerva's bribery sentence overturned] yle 27 June 2013

In 2013, former Vantaa mayor Jukka Peltomäki was accused of receiving €500,000 from Forma Futura from 2006 to 2011. Forma Futura had planned buildings for VVO, NCC, YIT and Citycon.Puolen miljoonan lahjusepäily Helsingin Sanomat 2.10.2013 A16[http://www.hs.fi/kaupunki/Vantaan+Peltom%C3%A4ke%C3%A4+ep%C3%A4ill%C3%A4%C3%A4n+t%C3%B6rke%C3%A4st%C3%A4+lahjonnasta+/a1380590973719 Vantaan Peltomäkeä epäillään törkeästä lahjonnasta] HS 1.10.2013[http://www.hs.fi/kaupunki/Peltom%C3%A4en+l%C3%A4hipiiri%C3%A4+ep%C3%A4ill%C3%A4%C3%A4n+rahanpesusta/a1380592524609 Peltomäen lähipiiriä epäillään rahanpesusta] HS 1.10.2013[http://www.hs.fi/kaupunki/Rikosoikeuden+professori+Virkamiehen+puolen+miljoonan+lahjusep%C3%A4ily+on+ainutkertainen/a1380598147839 Rikosoikeuden professori: Virkamiehen puolen miljoonan lahjusepäily on ainutkertainen ] HS 2.10.2013

The Olkiluoto nuclear plant construction project has been accused of grey work; it was impossible to check foreign workers' employment documentation without prior notice. Controllers and police had no unannounced access to the area. After notice, employment circumstances were often changed; foreign workers often left the country before a criminal case was evaluated. The workforce was fluid, and employees were not registered for tax or other official registers.Tarkastajat haluavat sakotusoikeuden Olkiluodossa HS 11.10.20112 A

There are several criminal investigations going on regarding transactions done by Youth Foundation, or Nuorisosäätiö in Finnish, since 2014 ongoing in 2018. Youth Foundation rents apartments for young adults in Finland. Youth Foundation have had close links to Centre Party. For example, its ex-directors include ex-Prime Minister Matti Vanhanen and MP Antti Kaikkonen. Foundation have received tens of millions of public funds for construction. In 2018 police investigated construction business in Estonia and €18,5 million financing from Poland. Millions of euros seem to be lost in consulting agreements and in overpayments of land and constructions.[https://yle.fi/aihe/artikkeli/2018/11/05/nain-kupattiin-nuorisosaation-rahat-kasikirjoitus Näin kupattiin Nuorisosäätiön rahat: käsikirjoitus] MOT YLE November 2018 Police investigate financial transactions, black market accounting, potential money laundering and potential relations to tax havens.[https://yle.fi/aihe/artikkeli/2018/03/07/nuorisosaation-johtaja-sai-satoja-tuhansia-euroja-veroparatiisiyhtioilta Nuorisosäätiön johtaja sai satoja tuhansia euroja veroparatiisiyhtiöiltä - poliisi selvittää, onko kyse lahjonnasta] YLE MOT 07.03.2018 Business in Estonia was made with a Finnish businessman, who is a member of the board in at least three apartments in the USA owned by MP Eero Lehti, conservative National Coalition Party in Finland.[https://yle.fi/aihe/artikkeli/2018/03/07/eero-lehden-unohtama-virolaisyritys-veroparatiisikytkos-ja-rakennusyhtion Eero Lehden ”unohtama” virolaisyritys, veroparatiisikytkös ja rakennusyhtiön veropetosepäily – satojen firmojen miehellä on poikkeukselliset verkostot] YLE MOT 07.03.2018

The construction company in Hämeenlinna was in bankruptcy in September 2019. Main owner was accused of bribes in relation to the Youth Foundation (Nuorisosäätiö) case.[https://yle.fi/uutiset/3-10985741 Rakennusliike Leimarakentajat jätti konkurssihakemuksen] YLE 24.9.2019[https://yle.fi/aihe/artikkeli/2019/07/22/rikosvyyhti-laajenee-jo-toista-rakennusliikkeen-omistajaa-epaillaan Rikosvyyhti laajenee – jo toista rakennusliikkeen omistajaa epäillään Nuorisosäätiön ex-johtajien lahjomisesta] YLE MOT 22.07.2019

Youth Foundation lost 8 million in real estate deals and the first juridical claim was published in January 2020. Investigation is ongoing about e.g. fraud and bribe.[https://yle.fi/uutiset/3-11169732 Nuorisosäätiö] YLE 15 January 2020

The 1977 Salora case was Finland's largest tax evasion and bribery case to date. TV Nurmi and Salora sold televisions valued at six million Finnish markkas (excluding accounting procedures) from 1970 to 1975. A Valco factory, built in Imatra at a cost of Fmk265 million in 1978, was bankrupt in two years. Politicians were accused of bribery, since they received TV and stereo equipment from Salora. Although no leading politicians were accused in court, Social Democrats, RKP, Liberals and Centre Party candidates lost in the next election because of suspected bribery. Bror Wahlroos, father of Björn Wahlroos, was accused of receiving stereos valued at Fmk2,000 and received a Fmk3,000 fine. Selora's director was convicted of bribing five ministers, two secretaries-general, one governor and 30 tax officers, and sentenced to {{frac|3|1|2}} years' imprisonment.Kronikka 1900–1999 Suomen ja maailman tapahtumat. Weilin+Göös, 1999

Tax Administration director Mikko Laaksonen found company election funds for the National Coalition Party which were incorrectly reduced as the expense of company operations during the 1980s. In 1979, the largest newspaper advertisement expenses in Helsinki were by members of the Construction Committee.Aarno Laitinen Musta monopoli Kustnnus vaihe Ky Gummerus 1982 page 110Aarno Laitinen Musta monopoli Kustnnus vaihe Ky Gummerus 1982 page 62

Mikko Sauli told Helsingin Sanomat on 11 May 2012 that political youth organizations overestimate membership to receive more state support. The large parties refused to give their member lists to authorities. State support was largest in 2012 for the centre (€670,000) and National Coalition Parties (€657,000).[http://www.hs.fi/paakirjoitukset/Nuorisoj%C3%A4rjest%C3%B6jen+haamuj%C3%A4senet/a1305562887241 Pääkirjoitus Nuorisojärjestöjen haamujäsenet] HS 15 May 2012Ex-demarinuori:Jäsenmääriä vääristelty, Poliittisten nuorisojärjestöjen jäsenrekisterit eivät pidä paikkaansa, sanoo demarinuorien entinen pääsihteeri Mikko Sauli, 11.5.2012A4 Ilkka Kanerva of the National Coalition Party was convicted in April 2012 for receiving bribes, and resigned from the Turku council the following month.[http://yle.fi/uutiset/kanerva_withdraws_from_turku_council/6102884 Kanerva withdraws from Turku council] yle 21 May 2012

In November 2016, Juha Sipilä's government allocated €100 million in public funds for Terrafame (known as the Talvivaara Mining Company). YLE TV News reported that a company owned by Sipilä's children and other relatives had a half-million-euro contract with Terrafame. According to Sipilä, Pöyry drew up the contract as a consultant. Pöyry's major owners are Henrik Ehrnrooth and his family.[http://yle.fi/uutiset/3-9315671 Pääministerin enojen, serkkujen ja lasten omistamalla yrityksellä noin puolen miljoonan euron tilaus Terrafamesta] Yle TV news 25.11.2016[http://yle.fi/uutiset/3-9291544 Terrafamen kaivoksen alasajo ei ole enää vaihtoehto – Sipilä: "Sotkamossa on tehty ihme"] Yle TV news 14.11.2016[http://yle.fi/uutiset/osasto/news/government_pledges_100_million_euros_more_for_eastern_finland_mine/9288663 Government pledges 100 million euros more for eastern Finland mine] YLE TV 11.11.2016 YLE reported that Georg and Henrik Ehrnrooth own a company in Luxemburg that organizes tax-haven companies for clients, including Jorma Ollila and Kari Stadigh. The company worked with Mossack Fonseca in Panama for several years.[http://yle.fi/uutiset/3-8841124 Ehrnrootheilta paljastui oma veroparatiisitehdas – yhtiöllä ollut tiivis suhde Panaman Mossack Fonsecaan] YLE A Studio 27.4.2016

In 2011, 11 football players were charged with bribery. Singaporean match-fixer Wilson Raj Perumal was accused of fixing matches from 2008 to 2011.RoPS-pelaajille ehdollista lahjusten vastaanottamisesta Singaporelaismies vankilaan, HS 20 July 2011 A2+0

Agreements include:[http://www.transparency.org/content/download/46187/739801 Global Corruption Report 2009] {{Webarchive|url=https://web.archive.org/web/20110303133128/http://www.transparency.org/content/download/46187/739801 |date=3 March 2011 }}, Corruption and the Private Sector, Transparency International August 2009

• Council of Europe Civil Law Convention on Corruption (signed June 2000; ratified October 2001)
• Council of Europe Criminal Law Convention on Corruption (signed January 1999; ratified October 2002)
• OECD Convention on Combating Bribery of Foreign Public Officials (signed December 1998; ratified February 1999)
• United Nations Convention against Corruption (signed December 2003; accepted June 2006)
• UN Convention against Transnational Organized Crime (signed December 2000; ratified February 2004)

According to Transparency international reports, Finland has changed little since 2012 in its Corruption Perceptions Index:{{cite web|url=https://www.transparency.org/news/feature/corruption_perceptions_index_2017|title=CORRUPTION PERCEPTIONS INDEX 2017 }}

• 2012 - 90 points
• 2013 - 89 points
• 2014 - 89 points
• 2015 - 90 points
• 2016 - 89 points
• 2017 - 85 points

{{portal|Finland}}

• Crime in Finland
• Police corruption in Finland

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• [https://www.coe.int/en/web/greco/evaluations GRECO evaluations] Council of Europe
• [https://web.archive.org/web/20131110143820/http://www.business-anti-corruption.com/country-profiles/europe-central-asia/finland/snapshot.aspx Finland Corruption Profile] from the Business Anti-Corruption Portal

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