The Government of Finland proposed an amendment of law regarding tax collection and tax procedures. The law was presented in Finish Parliament on March 17, 2016. Reduce administrative burden and simply tax procedures are the main objective of the proposal. Summary of the proposal are given below;
- A Law on Tax Procedure for Self-Assessed Taxes is introduced.
- Tax returns must be filed electronically. Hard-copy returns are permitted only in exceptional circumstances.
- The amounts of late payment interest and penalties for submitting a tax return late are amended.
- The deadlines for appeal procedures may be increased whether the Tax Administration may correct a mistake within 3 years of the year of ordinary assessment. Under certain circumstances, the time limit may be extended by 1 year or even to 6 years. In the case of tax fraud, the right to make a re-assessment remains during the criminal proceedings. The taxpayer must submit the appeal within 3 years from the beginning of the calendar year following the end of the assessment. Appeal to the local administrative court must be made within 60 days after the decision of the rectification board is handed down.
- The thresholds for small businesses which may submit their tax returns and remit their taxes due quarterly are increased.
The proposal will enter into force on 1 January 2017.
