Finnish tax authorities discovered €11 million in unpaid taxes during a targeted audit of restaurants. The investigation focused primarily on pizzerias, kebab shops, and Chinese restaurants across Finland.
Approximately 370 food service businesses underwent inspection through the third quarter. The operation targeted establishments identified through risk analysis as potential tax evaders.
Over half of the audited restaurants showed such serious deficiencies that they were referred for criminal consideration. Tax officials will determine whether to file formal criminal reports.
Unpaid taxes included income taxes, value-added taxes, and employer contributions. Authorities also made over 450 reports to other agencies about benefit fraud, unpaid pension payments, and money laundering.
Tarja Valsi, director of grey economy prevention at the Finnish Tax Administration, said the targets were selected based on their own risk analysis. The typical tax-evading restaurant is a small or medium-sized pizzeria, kebab restaurant, or establishment serving alcohol.
Valsi stated in a release that results show successful targeting of those most likely to operate improperly. Restaurants with foreign owners showed higher rates of violations than those with Finnish owners.
Common violations included failing to register all sales, paying wages unofficially, and neglecting employer payments. Valsi noted this creates unfair competition since these businesses can offer lower prices than compliant competitors.
She emphasized that tax supervision aims to ensure fair tax collection from all businesses. The recent findings closely mirror results from the previous audit cycle conducted several years ago.
Valsi observed that little has improved over the past decade. While most restaurant sector businesses operate properly, misconduct remains quite common.
The pattern suggests systemic issues in certain segments of Finland's restaurant industry that repeated audits haven't resolved. This creates ongoing challenges for legitimate businesses competing against operations that avoid tax obligations.