Taxpayer Identification Numbers to be introduced 2012

[Pursuivant]

Tax Administration Bulletin, 10/18/2011

The Finnish government has passed a proposal on 5 October 2011 to the Finnish Parliament suggesting new tax rules that implement Taxpayer Identification Numbers, TINs. The TIN system has also been referred to in the political program of the present government as one of the concrete measures that will permit the authorities to combat the underground economy.

The TINs will be introduced in 2012, and distributed to all taxpayers in Finland in connection with the mailings of the new 2012 tax cards (employees' withholding allowance certificates). No date of birth or personal identity number is visible in the TIN itself.

All employees within the sector of building, construction and installation will be registered with their TINs in a public register maintained by the Tax Administration. The mandatory badge to be worn by everyone working at construction sites will have the TIN printed on it. Furthermore, the obligation to monitor the use of badges is to be extended; the monitoring requirement will thus not only concern the builder-developer but also the main contractor and all the employers within the sector, who will be responsible for controlling their own employees.

Within the building sector, the TIN registration process will facilitate the tax control of the economic activities and help monitor the movement of construction workers. Foreign workers will be issued a TIN when they submit an application to the tax office for a personal identity number. Workers will have the obligation to always give their TIN number to their employer.

Construction sites that have started before the amendment of tax rules comes into force will have a transition period of six months permitting the use of identity badges as required by current work-safety legislation.

Further information and guidance regarding the use of TIN will be released during the year 2012.

[Mita nyt]

Now, THAT is hilarious...!

With all other problems they want to do this, wow. No common sense.

Thanks for the momentary lapse of reason, this did get a chuckle from me.

Then my reasoning skills came back to me(unlike the Suomi government) and I shook my head.

[onkko]

So what you would do against huge problem of grey economy?
Or is that so that when there is other problems then you shouldnt do anything?

[Mita nyt]

So what you would do against huge problem of grey economy?
Or is that so that when there is other problems then you shouldnt do anything?

Don't try to Troll me..Lmao

[onkko]

So what you would do against huge problem of grey economy?
Or is that so that when there is other problems then you shouldnt do anything?

Don't try to Troll me..Lmao

Thats not trolling, its honest question.

[DMC]

I don't understand how wearing a badge can make any difference to whether a worker is paid some or all of their wages "under the able". Can someone explain?

[Rip]

Can someone explain?

No, not really. Looking at the government proposal this the first step in increased obligation reporting information tax authorities, the future steps aren't really specified yet. For the time being this (I think) just should make of tax authorities of all people employed at construction sites (as they need to be registered to have the number.
http://www.finlex.fi/fi/esitykset/he/2011/20110058

[Upphew]

I don't understand how wearing a badge can make any difference to whether a worker is paid some or all of their wages "under the able". Can someone explain?

The tax status can be checked. If the taxes that have been paid are too low or none -> too low wages.

[Pursuivant]

I don't understand how wearing a badge can make any difference to whether a worker is paid some or all of their wages "under the able". Can someone explain?

Well if they raid a worksite, and Igor the brickie has been paid 100 euros last month, Igor's employer gets slammed for minimum salary violations. Also, Igor is working in Finland so he gets paid in Finland which helps Igor avoid the case Company X hires Company Y which subcontracts Oü Puijar.ee which promises Igor a lotsa money. When Igor buys his ticket home with his 100 euros the company that hired him has disappeared like a fart in Sahara. (has happened a lot). I think the last straw was the OL3 which was such a high profile project (and brought no jobs).

[Upphew]

I don't understand how wearing a badge can make any difference to whether a worker is paid some or all of their wages "under the able". Can someone explain?

Well if they raid a worksite, and Igor the brickie has been paid 100 euros last month, Igor's employer gets slammed for minimum salary violations. Also, Igor is working in Finland so he gets paid in Finland which helps Igor avoid the case Company X hires Company Y which subcontracts Oü Puijar.ee which promises Igor a lotsa money. When Igor buys his ticket home with his 100 euros the company that hired him has disappeared like a fart in Sahara. (has happened a lot). I think the last straw was the OL3 which was such a high profile project (and brought no jobs).

And there has been ideas floating that it is the principal contractor who has to report all the wages regardless if the worker works for subcontractor... report wrong numbers and pay the difference?

[Pursuivant]

As I understand this, it makes the principal contractor liable for unpaid taxes/fees. Which I think makes the principle contractor far more interested that the subcontractor does the payroll correct. We must remember here they're not interested in the "taxes" as what the employee is paying, but the "employer fees" which make up bulk of the payroll. So if Igor has been hired they don't care if Igor got paid 100, if the minimum monthly salary for a brickie is 1300, and the employee fees, social security etc. are another 1300, the tax office wants that and Igors tax on top. From the main contractor. I think this will see the contractors trying to jack up the house prices.

[Upphew]

As I understand this, it makes the principal contractor liable for unpaid taxes/fees. Which I think makes the principle contractor far more interested that the subcontractor does the payroll correct. We must remember here they're not interested in the "taxes" as what the employee is paying, but the "employer fees" which make up bulk of the payroll. So if Igor has been hired they don't care if Igor got paid 100, if the minimum monthly salary for a brickie is 1300, and the employee fees, social security etc. are another 1300, the tax office wants that and Igors tax on top. From the main contractor. I think this will see the contractors trying to jack up the house prices.

Daddy's pal mothballed his construction company as he regularly lost bids to Estonian companies that were making over 50% lower bids. He told that if he won't pay any taxes or insurances he could match the price...

While the officials won't do anything if Igor works for 100e, the associations will shout words like "yleissitova työehtosopimus, oikeus"...