FINLAND Law and Practice Contributed by: Petteri Rapo, Markku Renko, Henri Becker and Jaakko Niskala, Svalner Atlas Finland
5. Anti-Avoidance and Anti-Evasion Measures 5.1 Definition and Identification of Tax Fraud, Evasion, Tax Avoidance and Abusive Schemes In Finland, “tax fraud” vs “tax evasion” is generally covered by the tax crime provisions in the Finn - ish Criminal Code ( Rikoslaki ) Chapter 29. The core offence is veropetos (tax fraud). Its key elements focus on deceptive conduct aimed at producing an incorrect tax outcome (or attempting to do so). Legal criteria (core elements) for veropetos include that a person (i) gives the authority false information relevant to assessment, (ii) conceals a relevant fact in a return/notice, (iii) fails a tax‑related duty with the intent to avoid tax, or (iv) otherwise acts fraudulently, and thereby causes or attempts to cause tax not to be assessed or to be assessed too low, or to cause an undue refund. These are explicitly listed as alternative “modes of commission” in the veropetos provision. Finland also has aggravated and petty forms. Aggra - vated tax fraud ( törkeä veropetos ) is characterised (in essence) by seeking substantial economic benefit and/or particularly planned conduct, plus an over - all assessment of seriousness. This is relevant in cross‑border settings where structures are intention - ally engineered to hide income, beneficial ownership or flows. 5.2 Anti-Avoidance Mechanisms Finland combats tax fraud, evasion and avoidance through a combination of general and targeted anti- avoidance rules, information-reporting regimes and risk‑based tax control. A central tool is the general anti-avoidance rule (GAAR) in the Act on Assessment Procedure (VML), applied where arrangements are implemented primarily to obtain tax benefits contrary to the purpose of tax law; the Finnish Tax Administra - tion has issued detailed guidance on the application of the GAAR (VML 28 §). In cross-border contexts, specific anti-avoidance mechanisms include, among others: (i) CFC rules under the Finnish Controlled Foreign Company regime (Act 1217/1994) and related guidance, aimed at pre -
and therefore Amount A does not, for the time being, require action by Finnish enterprises. 4.3 Pillar Two Finland has implemented the OECD/G20 global mini - mum tax under Pillar Two. The rules apply to accounting periods beginning on or after 31 December 2023 (ie, from tax year 2024 for calendar‑year groups). The Undertaxed Profits Rule generally applies to accounting periods beginning on or after 31 December 2024 (ie, from tax year 2025). Finland has also adopted a Qualified Domestic Mini - mum Top‑up Tax applying from periods beginning on or after 31 December 2023. The minimum tax returns can be submitted as of 30 January 2026. 4.4 Specific Features or Deviations of Pillar Two Finland’s implementation of the global minimum tax under Pillar Two closely follows the OECD/GloBE framework and the EU Minimum Tax Directive, with no material policy‑driven deviations. Where differences exist, they are technical, EU‑driven or administrative, rather than substantive departures from the OECD Model Rules. 4.5 Digital Services Tax Finland’s policy discussion has historically empha - sised an OECD-based global solution to digitalisa - tion-related tax challenges, including the view that the digital economy should not be ring-fenced. This reinforces the point that Finland has not introduced a separate domestic digital services tax and has instead focused on multilateral approaches to address digital - isation-driven issues.
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