Companies|The gray economy investigation unit estimates that Finland loses 40 million euros in tax revenue every year due to business related to organized crime.
The summary is made by artificial intelligence and checked by a human.
There are almost 2,000 companies operating in Finland that are connected to organized crime.
Companies connected to organized crime are typically young and small, operating in Uusimaa, construction, real estate or car sales.
Finland loses an estimated 40 million euros in tax revenue every year due to business related to organized crime.
in Finland there are almost 2,000 companies that have a connection to organized crime, informs the Tax Administration.
According to the Tax Administration, the company’s responsible persons are either directly connected to organized crime or are under the influence of organized crime. Some of the companies’ responsible persons are current or former members of organized criminal groups.
Almost 1,900 of the responsible persons of companies in Finland are connected to organized crime. 95 percent of the responsible persons connected to crime are Finnish citizens, says the Tax Administration.
The matter emerges from a recent report by the Tax Administration’s gray economy investigation unit. It is the first time that the unit investigated the connection between organized crime and business activities with the Central Criminal Police.
Tax Administration a typical company connected to organized crime is a small construction, real estate or car dealership operating in Uusimaa, which is young in age. However, companies linked to organized crime can be found in almost all industries.
The report also looked at companies linked to organized crime in industries that the Government has classified as critical for the functioning of society. About 130 risk companies operate in such industries, such as security and cleaning services, the release states.
Criminal groups can use legal business, for example, to launder money obtained from criminal activities or to commit various frauds and financial crimes.
“Organized crime has a strong foothold in Finnish business life,” says the director of the Gray economy investigation unit Janne Marttinen in the bulletin.
To gray the economic investigation unit estimates that Finland loses 40 million euros in tax revenue every year due to business related to organized crime. The estimate only covers limited companies.
Companies linked to organized crime engage in the shadow economy more often than control companies and manage their tax obligations significantly worse.
In the tax audits aimed at companies, unpaid taxes of around 11 million euros were found. In addition to that, hidden salary payments and hidden dividend distribution were observed, where non-taxable benefits are taken from the company, for example by adding private expenses to the accounting.
“Crime that has infiltrated business activities causes society not only financial damage, but also a lot of other damage. “Honestly operating companies find themselves in an unfair competitive position when they compete, for example, with criminal groups that use illegal labor,” says Marttinen.