Tags: Business, David Shearer, finance, Finland, money, Sami Varonen, tax, Tax reform, Taxation, Value added tax
An idea for Finland Fanboi Shearer to Ponder
Published on March 21st, 2013
Written by: Cameron Slater
David Shearer is a big fan of Finland…perhaps he will soon start suggesting this solution, taxing unpaid work:
FINLAND’S tax authority is trying to find new ways to increase revenue and is considering going so far as to tax unpaid labour, an official has told public broadcaster YLE.
The tax office was looking at service exchanges in particular, such as time banking, where reciprocal services are exchanged using units of time as currency, or more informal arrangements such as that between two neighbours.
“If the neighbourhood electrician and carpenter are involved in each other’s private house construction the value of the work performance is already quite high. It would be extraordinary if neither of their work would be taxed,” a leading tax expert from the Finnish Tax Administration, Sami Varonen, told YLE.
He said it didn’t matter that not a single cent had been paid.
“The value must be determined and declared to be taxed,” he said.
“We have a tax deficit due to many causes, but the most serious problems are in sectors that deliberately want to avoid taxes and also function this way,” Varonen said.