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Finnish tax administration: VAT fraud has increased in the steel trade

Finnish steel. Photo: Creative Commons, Chrisreading
Finnish steel. Photo: Creative Commons, Chrisreading
Published by
Markku Björkman - 09 Oct 2018

Tax administration has discovered companies in the steel trade that do not declare or pay VAT for their sales in Finland. The problems especially concern foreign sole proprietors who sell reinforcement steels and steel fittings to Finnish companies.

The buyer is required to investigate the reliability of his trading partners, points out the Tax Administration. The buyer can thus be held liable for the loss of value added tax.

In order to combat so caller grey economies, some EU countries, including Poland, Estonia and Latvia, have introduced a reverse tax liability for steel trade. In the case of reverse tax liability, the buyer is liable to pay VAT to the state.

The tax administration gives eleven tips to companies for revealing a dishonest actor. The clearest tip is to be vigilant. If the deal feels dishonest, it's probably that.
 

Cobalt mine in Democratic Republic Congo. About half of all mined cobalt comes from DRC, mainly from the province of Katanga. The mining takes place close to towns and villages. Local communities regularly are cut off from their farmland and water sources near mines, without having had a say in the matter. There are several examples of forced relocations of entire villages. Inhabitants of the village Kishiba, for example, were forced to move to make way for Frontier, a cobalt and copper mine. Their new homes in Kimfumpa lack the most basic of services such as clean water, fertile farmland, schools and health care. Photo: ECCJ Secretariat
Cobalt mine in Democratic Republic Congo. About half of all mined cobalt comes from DRC, mainly from the province of Katanga. The mining takes place close to towns and villages. Local communities regularly are cut off from their farmland and water sources near mines, without having had a say in the matter. There are several examples of forced relocations of entire villages. Inhabitants of the village Kishiba, for example, were forced to move to make way for Frontier, a cobalt and copper mine. Their new homes in Kimfumpa lack the most basic of services such as clean water, fertile farmland, schools and health care. Photo: ECCJ Secretariat

Chinese control half of the Congo's cobalt