In a recent inspection by the Tax Administration, 19.5 million euros in unpaid taxes from the restaurant industry have been revealed over the past five years. Out of this amount, there is 8 million euros in unpaid corporation tax.
In its press release on Tuesday, the Tax Agency announced that a total of 40 million euros in hidden income had been found during the inspection.
From the beginning of next year, the tax authorities are planning tax audits and other inspections of hundreds of restaurants across Finland.
Tarja ValsiThe deputy director of the tax administration said that there is a large gray economy in the industry, although many restaurant owners pay their taxes as they should.
Data from the tax administration show that typical tax-evading restaurants are small to medium-sized takeaway restaurants, especially kebab and pizza sellers.
Valsi said that tax evasion companies almost always act consciously and make precise arrangements to avoid taxes.
Tax-dodging restaurants typically pay their workers such low wages that they can receive unemployment benefits at the same time as their wages, according to the IRS. The tax authorities also cannot obtain a statement of the wages paid.
"We have found that in many restaurants, the real income of employees consists of official salaries of a few hundred euros, unpaid wages and unemployment benefits. It is not only tax evasion, but also the abuse of social benefits, and this must be stopped through effective information exchange and cooperation," Valsi said.
Source: The Nordic Page