Every taxpayer in Finland must file an annual income tax return or at least verify that the information on the pre-filled income tax return is correct. Not filing a tax return or filing an incorrect tax return may result in a tax increase or a late-filing penalty. At worst, failing or neglecting in declaring taxable income or making false deductions can result in criminal liability.
preparing and reviewing corporate tax returns
The CEO and the management of a company are ultimately liable for the accuracy of the information presented in the tax return – even if the tax return was accepted and filed without proper review. Furthermore, the company's management is responsible for any errors in the tax return albeit the tax return was prepared independently by an accounting firm.
Due to the risk of a tax increase, it is worth paying attention to the tax return and to the information provided therein to ensure that the tax return would not be considered incorrect in a situation where the Tax Administration's view of the interpretation differed from the company's own view. For example, careful attention should be paid to reporting the sale of fixed asset shares. This is because a share transaction may be tax exempt if certain requirements are met, but often the fulfilment of the conditions is interpretative. Due to the interpretative nature of certain tax regulations, we tend to recommend applying for a preliminary ruling on similar matters.
If the tax return has been prepared incorrectly and the taxation has been confirmed in accordance with the incorrect tax return, an appeal may be lodged against the tax decision.
TAx return and dividend taxation
The correctness of the company's tax return has a significant impact on the owner's taxation as the taxation of the dividend is determined according to the asset calculation included in the company's tax return.
Any changes in the company structure, such as M&A transactions, will increase the possibility of risks in the taxation. According to our experience, it is rather common that for example the basis for dividend taxation is incorrect due to for example significant changes happened in share amounts or in company’s assets. An unnoticed mistake may lead to excessive taxation of dividends. Hence, it is advisable to pay extra attention to the taxation and double check the tax decision especially when there have been changes in the company.
tax return of an individual – preparing and reviewing a tax return
The tax return service of an individual can consist of the following areas:
- Calculating additional prepayment tax during the tax year or immediately after the tax year has ended in order to avoid late-payment interest
- Checking and supplementing the pre-filled tax return
- Reviewing taxation of previous tax years
- Replying to the Tax Administration’s requests
- Preparation of claims for adjustment and tax appeals
- Acting as a representative (possible MyTax authorization)
- In addition to tax return services, we offer tax planning services e.g. in the following areas:
- Gift and inheritance taxation
- Investment activities (e.g. organizing investment activities, use of leverage)
- Acquisition and disposal of assets
tax return – possibilities to spare money
Fiscales assists its corporate and individual clients by preparing and reviewing their tax returns to verify and ensure tax return’s content is correct and filed on time.
Ensuring the accuracy of the tax return together with a tax advisor significantly reduces the possibility of errors. A well-prepared tax return can also lead to tax savings e.g., by properly reporting all deductions. Correctly prepared tax return also reduces the need for claims for adjustments and tax appeals, and thus the amount of inconvenience and unnecessary costs.
We encourage individuals and businesses to review their tax returns and taxes at regular intervals. It is especially important whenever there have been corporate restructurings or other significant changes in the business operations and/or when the individual (e.g. owner/shareholder) has had some significant changes in the income or assets side.
