Preventing, exposing and detecting undeclared work and economic crime are important goals for the police in fighting crime. In the current year, the police have organised several surveillance raids with other authorities, for instance in the transport sector, and have taken actions related to the crime of human trafficking.
- With the help of the surveillance raids and cooperation with the authorities, it has been possible to concretely identify and combat forms of the gray economy and economic crime. The cooperation has been particularly close with the Tax Administration and regional administrative agencies, says Mikko Kiiski, Chief Superintendent from the National Police Board.
Based on the Tax Administration's report that has just been published, undeclared work occurs especially in, for example, the construction sector, the restaurant sector, the retail trade sector and the storage and transport sector.
- According to police assessment, the gray economy and economic crime related to these industries are also essentially related to professional and organised crime, which is important for the police to identify and prevent. Cooperation between the authorities and administrative means of crime prevention are also important tools in this context and in increasing the effectiveness of prevention measures, says Kiiski.
Undeclared work for 900-1,400 million euros
According to the newly released report by the Tax Administration, undeclared work is done annually in Finland for an estimated 900-1,400 million euros. The loss of taxes and social insurance contributions from undeclared work is around 300–480 million euros.
The undeclared funds withdrawn by shareholders and entrepreneurs form a significant part of the total estimate of undeclared work. Entrepreneurs account for up to three quarters of undeclared work, and wage earners account for about one quarter.
According to the report, undeclared payment of wages to employees occurs, for example, in food and beverage service activities and construction, where the general wage level is low, work produces services and cash is commonly used. In the same industries, especially the shareholders of small joint stock companies take income from their companies without paying the related taxes. For entrepreneurs, the food and beverage service activities and the transport sector emerge strongly as industries of undeclared work.
