The Finnish Tax Administration began mailing out revised tax statements to taxpayers on Monday and will continue to do so over the next nine weeks. The decisions will let recipients know whether they have to pay residual taxes, tax penalties or whether they will get a refund.
Based on previous experience, some 2.5 million people are likely to get revised decisions this year. Last spring a total of 4.62 million residents received the pre-filled tax forms in the mail.
Penalties for late filings, undeclared income and unwarranted deductions
Officials say that on average, some 17,000 people usually end up facing tax penalties every year. This year is likely to be much the same. The average tax penalty bill is 500 euros.
The Tax Administration imposes penalties for a number of reasons. Major faux pas include failing to declare income earned, unwarranted deductions and tardy tax declarations.
All taxpayers who have adjusted their pre-filled tax declaration forms will receive the new decisions over the next nine weeks. In cases where the tax authorities have received new information, for example from an employer will also receive new decisions. So too will the self-employed.
The decisions are usually mailed out in random order. This means that taxpaying members of the same household will not necessarily receive their envelopes at the same time. The Tax Administration will mail out the final envelopes at the end of October.
Refunds for some, tax bills for others
Tax officials can’t yet say how many people will have to pay additional taxes because they did not pay enough on their income during the preceding year. In 2016, some 750,000 taxpayers wound up paying to catch up on taxation on their 2015 income. The average sum they had to fork out was 1,500 euros. The annual amount paid out in residual taxes comes in at around 1.1 billion euros each year.
Taxpayers who have to pay residual taxes will have to settle in two instalments, on 29 November and 1 December, as long as the amount exceeds 170 euros. If the residual tax is under 170 euros, the payment date is 29 November.
Similarly, tax authorities don’t yet know the final number of people who will get tax refunds, but last year, 3.6 million lucky residents received rebates averaging around 650 euros. Those who’ve paid in excess taxes during 20016 will receive refunds on their bank accounts on 5 December. The state generally pays out some 2.3 billion euros in tax refunds, a figure that has remained more or less constant over the years.
Recipients should always check their revised tax statements. Taxpayers who still find inaccurate information on the documents can phone the contact number on the form to sort out the matter. They are advised to do so as soon as possible, by the end of October at the latest. That’s because changes left until after the beginning of November will require a written rectification request. Individuals requesting such changes will have until 2022 to file them.
