Street newspaper Iso Numero says that it has received back taxes, the future of the newspaper is at stake

Tax administration has imposed a back tax of more than 410,000 euros on the background association of the street newspaper Iso Numero. Iso Numero informs that the decision may end the magazine.

CEO of Ison Numero Janne Hukka tells HS that the tax exceeds the magazine’s annual turnover by about one and a half times. That would mean the bankruptcy of Iso Numero, Hukka confirms.

According to Ison Numero, the subsequent tax is based on the taxman’s new interpretation of the position of newspaper sellers.

The tax assessor considered that the sellers of the magazine are in a commission relationship. Iso Numero denies the interpretation in the announcement and says that it is a completely independent resale.

The magazine relies on the fact that its sellers are not required to perform any work and are not paid any commissions, but they keep the income they receive from sales.

According to the tax administration, the commission relationship is supported by, among other things, the seller cards and vests of Ison Numero’s sellers, telling about good sales locations, the recommended price printed on the cover, the Mobilepay payment system and supporting the sellers’ activities.

Tax Administration According to

Iso Numero would be responsible for the withholding of the sellers’ earnings and the payment of value added tax on the recommended selling price of the entire magazine of 15 euros. Until now, Iso Numero has paid VAT on the wholesale price of the magazine of 7.5 euros.

According to the release, the Tax Administration calculated the sellers’ withholding tax at a 40 percent tax rate, because Iso Numero cannot identify sellers to the Tax Administration.

“The amount is exceptionally unreasonable: according to Ison Numero’s estimate, none of the sellers have earned more than 15,000 euros per year from street newspaper sales, which would be the limit of taxable income,” the newspaper’s announcement reads.

According to Ison Numero’s estimates, around 60 percent of sellers earn less than 400 euros per month from selling the magazine.

ISO Number says that he has submitted a correction request to the Tax Administration. At the same time, the newspaper has applied for a postponement of the implementation of the decision. The decision on the postponement application will be made before Christmas, CEO Hukka says.

According to the newspaper, the correction process can take several months. If necessary, the newspaper plans to take the matter to the administrative court.