Finnish banking monster Björn ‘Nalle’ Wahlroos has invested more than EUR 140 million in companies in Luxembourg, according to a database compiled by journalists for a French newspaper; Le Monde.
Wahlroos, Chairman of both the financial giant Sampo Group and the forest industry company UPM-Kymmene, is a shareholder in at least five Luxembourg companies, three of which are listed as owners. Wahlroos is also reported to have invested in the British payday company Auden Group Limited.
Hundreds of Finnish companies and individuals have been involved in asset management in a tax haven in Luxembourg, according to Yle MOT’s review report.
Other Finns who have transferred financial assets to Luxembourg are Ilkka Herlin, Heir to Kone’s assets but not involved in the family business, former Nokia chairman Jorma Ollila, Former CEO of Sampo Kari Stadigh and Ehrnrooth family.
Although the database also includes mafia-owned companies and money laundering-related companies, there are currently no signs of reputable transactions in the hands of the Finns mentioned in the story.
European tax haven
Luxembourg has long been considered more "acceptable" tax haven than Panama or the British Virgin Islands. The ability of companies to enter into low-cost contracts to apply for tax breaks, a system that favors profit shifting and the discretion offered by the country has made Luxembourg attractive to many investors.
In the Grand Duchy of only 600,000 inhabitants, almost 90% of businesses are currently owned by non-Luxembourgers.
Member of the European Parliament Eero Heinäluoma (SD), acting as an alternate member of the Subcommittee on Taxation, described the results of the database as follows "shocking".
"Luxembourg has in the past been caught up in questionable economic activity. The country has promised to change its practices and to some extent," Heinäluoma told Yle and added that some of these practices have been replaced by new ways of tax avoidance, leading to a loss of income throughout the European Union.
"Luxembourg does not do this in a vacuum, their actions affect the other 26 Member States. The loss of tax revenue is € 1 billion on the ball," Heinäluoma explained and hoped that the members of the European Union would unite to fight to increase transparency.
"When some refuse to participate, others have to make up for the loss. As awareness increases, the pressure on these countries increases and their practices are unsustainable," he said.
Source: The Nordic Page