An official of the Ministry of Finance is worried about the government’s tax proposals

Helsingin Sanomat emphasized that it is unusual for a key person to publicly comment on proposals.

Also the Minister of Finance (Keski) considered last week that the government should withdraw the proposals and added that he appreciates the importance of the proposals for the left-wing parties in the government coalition.

His assessment received a response from the Prime Minister Marin (SDP).

“If the starting point is that there is no need to stand together on agreed issues, then I am sure that we will not be able to handle issues that are important to the Center. Then we would be talking about the ability of the entire government to function,” Marin told on Sunday.

Capital gains tax is designed to prevent wealthy individuals from avoiding capital gains tax by moving to a country with a lower capital gains tax. The tax would give the authorities the opportunity to tax property sold abroad to the amount that the property has appreciated while the person lived in Finland.

Its critics in particular have labeled the tax an exit tax.

A similar tax is valid in several western , such as Canada, Denmark, , , Norway, , Holland and the United States, reports Helsingin Sanomat.

The commuting tax, on the other hand, would introduce the concept of a financial employer so that the authorities could collect tax for done for a Finnish employer, even if the employee’s official employer is located abroad.

Helsingin Sanomat reported that the tax would apply to certain persons who come to Finland for a temporary financial employer. An employee coming from outside the company would be liable for tax immediately, while an employee arriving through an internal transfer would be liable for tax if the stay exceeds 14 days or business trips to the country for a total of no more than 46 days in one year.

The Regulatory Impact Assessment Council has criticized both draft proposals as bad. Neither has been presented to the parliament yet.

According to Majanen, the shortcomings are due to the attempts of tax experts from different parties to influence the content of the proposals from the beginning. “It was not a normal preparatory work, where the authority prepares a proposal and considers suitable parameters,” he stated.

Although some of the shortcomings have been fixed, he is still “genuinely concerned” about the feedback received from .

“I have been contacted by numerous start-up companies that compete for top talent on the global market. Although the contacts are probably mostly related to the protection of interests, these taxes have been interpreted – rightly or wrongly – as hostile measures or punishments,” said Majanen.

Aleksi Teivainen – HT

Source: The Nordic Page

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