Ethical principles of the Finnish Tax Administration
The Tax Administration collects taxes and fees, monitors citizens’ and corporations’ compliance with tax rules, handles payments and recovery of unpaid taxes and represents the legal rights of tax recipients. In addition, the Tax Administration is expected to promote fairness and uniformity of taxation and to constantly improve its service offered to taxpayers. The central government has entrusted the Tax Administration with discretionary powers with regard to fiscal matters and the power to set out normative rules. As a consequence, good practices of tax assessment and respect for basic human rights are particularly important. It is the aim of the Tax Administration’s activity to collect the “right tax at the right time”, in order to safeguard sustainable financing for the Finnish society. Our values are: building trust, working together and embracing new ways of working. The values are at the core of our organisational culture.
The principles of ethics declared by the Tax Administration help all of us to act in a ethically sound way and will further our organisational culture and – externally – reinforce our good reputation. In day-to-day decision making, the requirements on ethics are and will be a source of advice and support. We can also rely on them when we interact with members of our stakeholder groups. Ethical principles promote openness, accountability, and actions based on ethically sound principles. When implemented, the principles help us hold on to the important forms of capital that we have: our human resources, our knowledge, information, property and assets – including our good reputation.
We are creating a future of sustainability and responsibility as we operate in accordance with our values and the principles emanating from the requirements on ethics. These principles will help us build trust between ourselves and our stakeholders, and safeguard the functioning of our society.
Our ethics are based on respect for our employees and our work collective, fairly and ethically, and on the Tax Administration’s values of trust, working together and new ways to work. An important aspect of the Tax Administration’s rules on ethics is that they build on the Finnish Government’s anti-corruption strategy and action plan (Government Resolution dated 27 May 2021).
Everyone among the Tax Administration’s employees and all the Tax Administration’s partners-in-cooperation are expected to fulfil the requirements on ethics when carrying out their work.
1. Adherence to legal norms and living up to commitments
We operate in compliance with laws, decrees and regulations. This is seen as the basic level and the starting point for administrative activities. The provisions of the Act on Public Officials in Central Government and the public liability of civil servants for acts in office are observed. It is the Tax Administration’s policy to respect not only the applicable legislation but also the principles of good governance, ethics of civil service, and the values of public administration.
2. Respect for human rights and for the rights of our employees
The Tax Administration’s activities are based on full recognition of human rights and civil liberties. We treat everyone fairly and equitably. The Tax Administration’s services, work environments, and supply chains will not allow an activity that would compromise human rights or be discriminatory, not in respect of an individual’s age, gender, national origin, native language, religious faith, or opinion. Discrimination having to do with an individual’s physical disability, state of health, sexual orientation, etc. cannot be tolerated.
The Tax Administration is an employer committed to ensuring that everyone working here will enjoy fair terms and conditions of their employment contract, and we recognize every employee’s right to membership in a trade union and involvement in collective bargaining.
3. Fulfilling the role of a responsible employer
We promote equality and non-discrimination, having established an official plan for that purpose. We also promote diversity, equality and inclusion at work. We expect all our employees to maintain a disciplined, appreciative attitude toward everyone else.
No tolerance exists or will exist for bullying, harassment, discriminatory behaviour or for acts of vengeance. No discrimination is practised in any form during the selection processes to fill a vacancy, nor during employees’ period of working for the Tax Administration, with regard to the individual’s age, gender, national origin, language, religious faith, opinion, physical disability, state of health, sexual orientation, etc.
The Tax Administration’s culture encourages people to be open and motivated. We encourage our employees to further their skills and we often present solid opportunities for career advancement at the Tax Administration. We also set clear personal goals to support performance. We support a management culture that adheres to the Tax Administration’s values.
It is an important objective to maintain our employees’ well-being, which consists of the individual’s skills, motivation, health, work environment, work community and management.
4. Care for all property and assets within our responsibility, data processing in a responsible manner
The Tax Administration’s property, assets and the information placed under its responsibility are kept and maintained with great care. These resources are only used for purposes directly connected to the Tax Administration’s legally defined domain. Being a public authority of the central government, we have a duty to implement a good data processing practice, to take account of data security levels in accordance with official regulations, and to maintain secrecy and confidentiality by making sure of an appropriate protection of data. We safeguard the Tax Administration’s property, information and workspace against damage, various forms of cyberattacks, theft, misuse, loss and against other comparable incidents.
The Tax Administration has a careful, responsible attitude with regard to data collection, saving of tax-related data, and the use of other data. In addition, we ensure that the immaterial rights of different holders of rights will remain protected. As an activity, the assessment of taxes is largely based on the processing of information relating to people and corporate entities. This means that the Tax Administration can only meet its legal obligations successfully when it is able to ensure that its data processing function is flawless. Because of the special characteristics of our official duties and obligations, we must recognize the importance of data, information and intangible assets and the need to protect them.
When assessing taxes, the Tax Administration is entitled to match any data input coming from third parties with an individual taxpayer’s tax-return information in a manner that is justified, taking into account the nature and scope of the matter, the principles of fair and equitable treatment of taxpayers, and the needs of tax control. Risk assessments conducted beforehand are a method used regularly for ensuring correct proportionalities with regard to data processing activity, and for ensuring that data subjects on our registers will have as little inconvenience as possible.
Automated decision-making is implemented in compliance with relevant legal requirements. We apply the regulations on ethics and accountability to the way we use AI. We have created a set of principles for the ethical use of AI.
It is the Tax Administration’s normal procedure to treat personal data in accordance with ethical principles, and to comply with the legal norms that govern the protection of personal data. We prevent all access by outsiders to secret information, and as required by the Data Protection Act, we set up appropriate shields for protecting personal data against unauthorised use, against release to third parties, changes in data contents, and against their deletion or exposure. We also take steps to protect data that needs specific protection. Typical cases concern persons who are legally protected by a non-disclosure order for personal safety reasons, and the prevention of the use and disclosure of corporate inside information. And further, when co-operating with other countries’ fiscal authorities in the framework of information exchange, we comply with the confidentiality requirements relating to the processing of detailed tax information received from abroad. We devote special attention to matters related to information security and data protection.
5. Being aware of environmental concerns
We have prepared an environmental programme for our office space and we are committed to following selected WWF Green Office criteria.
Accordingly, the Tax Administration is committed to reducing the consumption of paper and electricity, as well as travel expenses and waste volumes, and to increasing its employee’s awareness of environmental concerns. In activities relating to corporate purchasing and procurement, we want to cause as little environmental impact as possible over the entirety of the purchased goods’ lifespans.
The overall objective is to reduce emissions of carbon dioxide.
6. Applying a perspective of sustainability to purchasing
The Tax Administration’s purchasing activity is based on compliance with a shared set of procurement guidelines and a special process. We follow the legal requirements set out by the provisions of the Act on Public Procurement and Concession Contracts, and of the Act on the Contractor's Obligations and Liability when Work is Contracted Out.
We select suppliers by implementing non-discriminatory, neutral and fair procedures, and we work openly, taking account of the requirements of proportionality.
When selecting the suppliers, we are also aware of the different aspects of social responsibility, i.e. economic, social and environmental concerns. The Tax Administration makes its decisions on purchasing with a view to retain a proper operational transparency, in keeping with the general objective to combat the shadow economy. As required by the Act on the Contractor's Obligations and Liability when Work is Contracted Out, after a purchasing agreement has come into force, we keep monitoring the suppliers’ ongoing fulfilment of its duties as a seller. In the case of international sanctions and related compliance, we perform checks on a regular basis.
7. Avoidance of conflicts of interest
We operate with neutrality in mind and we avoid conflicts of interest. To be biased means that a person has a relationship with the matter to be addressed or with another person who is party to the matter at hand, and the existence of this relationship casts doubt on the person’s neutrality. A conflict of interest occurs when personal interests or obligations – including those of a close family member or an organisation represented by a close family member – interfere with professional duties, and with the statutory obligations of the Tax Administration.
Although the person concerned may claim to act objectively and neutrally, to be free from bias would additionally require that if subjected to an outsider’s view, the person’s work and actions would be considered unbiased. When an operational circumstance only seems to make a conflict of interest arise – although no actual conflict exists – the Tax Administration’s reputation may be at risk because of the harmful impact on overall reliability.
In general, the Tax Administration’s approach to biasedness of an individual who works for the Tax Administration is that this individual employee should be excluded from all related procedures and stages of processing of the matter.
The Act on Public Officials in Central Government contains detailed rules which the Tax Administration complies with, especially in matters relating to employee’s second-job arrangements. This means that everyone is under a duty to provide information to the employer regarding any second job, and unless an exceptional permission has been given, under a duty to refuse from taking on a second job that requires activity on the Tax Administration’s time. Further, no interference caused by the second job should jeopardise people’s trust in the employee’s impartiality in conducting their official duties, or have a negative impact on the carrying out of the duties. The job cannot become a competing activity that could be detrimental to the employer.
8. No tolerance for bribery, corruption or abuse
No corrupt practices, occurrences of bribery, nor abuse of operational rules are accepted. Corruption is the misuse of authority for personal benefit. A person who has formal authority is one who has the power to direct an organisation’s choices and decisions, who has the necessary ability and a position that allows them to take action, be influential, and have impact on another organisation’s or individual’s activity, decision-making, behaviour and even opinions. However, not all activities that would otherwise be treated as having the legal markers of corruption are an offence in accordance with Finland’s Penal Code. However, all corruption is unethical, constitutes a breach against generally accepted values in society, is likely to cause misuse of important resources, and weakens the public’s trust in democracy and in decision-makers’ proper conduct.
The Tax Administration is an organisation where we refrain from paying out, offering, asking for and accepting any bribes or unjust privileges, which jeopardise an impartial, objective work culture – or which, in the eyes of an outside observer – would probably make it seem that our culture is at risk. We also refrain from asking anyone to accept or to take a bribe in any of the numerous direct and indirect ways this can take place. When our work involves circumstances that leave room for interpretation or are unclear, we will simply refuse from accepting the offered gesture.
As for gifts and hospitality, it is the Tax Administration’s policy to make sure that any gifts to a third party – and any gifts received – are low in value, conventional and generally in line with the Tax Administration’s own guidelines and the guidelines issued by the Ministry of Finance. When outside parties offer us gifts and hospitality, employees of the Tax Administration are required to evaluate each situation carefully and expected to decline any recurring offers from an outside party.
9. Interaction with stakeholders in accordance with the regulations on ethics
To work together is one of the Tax Administration’s values. We believe in the virtues and benefits of co-operation across administrative sectors and are committed to working toward a sustainable, prosperous society. To co-operate with stakeholders is one of our activities aiming for general improvement of taxpayer service. When we interact with different groups of stakeholders we comply with the code of ethics, and we co-operate in an accountable manner in order to reinforce the Tax Administration’s good reputation as a trustworthy public authority.
This means that we cannot accept any form of lobbying, exercised by outside parties, taxpayers or stakeholders, likely to exert an impact on the Tax Administration’s decisions and on the work of its employees in ways that can be seen as unethical, improper or even illegal.
We never get involved in any practices that may undermine the Tax Administration’s impartiality in fulfilling its legal obligations, nor in practices that may seem biased or discriminatory in the eyes of members of the public. We are impartial and transparent when we co-operate with our stakeholders.
10. Confidentiality and commitment to the obligation not to benefit from non-disclosable information
The Tax Administration’s employees and service providers are bound by a legal obligation of confidentiality. Our work often involves the processing of confidential and secret information. We understand this, so we are committed to retain and safeguard all confidential information that we use at work. We handle information responsibly.
Secret information may not be used to one’s own benefit or to someone else’s benefit or detriment, even in circumstances where no release of information to unauthorised third parties would take place.
In addition, the principle of confidentiality is balanced by government agencies’ duty to adhere to the principle of openness. In compliance with the provisions of the Act on the Openness of Government Activities, we promote good governance and citizens’ access to information in the public domain.
The concept of inside information is related to non-public, precise information about a company that issues securities or about a financial instrument, which, if disclosed, would likely have a significant impact on the price of that security or a related derivative contract. It is strictly prohibited to make use of any inside information with a view to gain personal or financial benefits from purchases and sales of corporate stocks. Insider trading is not only detrimental to the proper functioning of the markets, and it not only goes against the Tax Administration’s values, but it is also illegal. This means that we do not buy or sell financial instruments that are sensitive to any form of inside information we may have.
By extension, we do not give recommendations or advice to others in matters where a connection between a financial instrument and financial inside information exists. Nor do we disclose such information to outsiders. We have fully understood that the above requirement also applies to other business transactions besides the trading activity with various financial instruments. We have also understood that all disclosure of inside information is illegal and therefore prohibited. A strong link exists between the concept of inside information and the obligation of confidentiality of tax information. In general, we are allowed to disclose inside information only to the extent that those items of information have become necessary for the completion of our normal work duties, and only when the inside information is necessary for the finishing of the work duties.
11. Compliance with the principles of good, ethical governance
Senior management, other managers and employees fulfilling a supervisory role have responsibility for securing full attainment of the Tax Administration’s objectives with regard to values and agreed principles. This responsibility means that they participate, promote and take charge of an organisational culture aimed at openness. And further, the management’s conduct should be exemplary, and as needed, members of the management should take action in response to any breaches they become aware of
The Tax Administration’s overall capacity to function properly is heavily dependent on the commitment of the senior management and other managers to the shared objectives and values. The Tax Administration expects its management to pursue ethical leadership, which will contribute to the fullfillment of our key values even more widely in society.
Ethical leadership means making everyday choices that reflect a shared code of ethics. This means consistent, equal and responsible management which will support the employees’ well-being and improve the organisation’s productivity. Ethical leadership is about creating and fortifying a culture of doing things right.
12. Taking action against corruption and the shadow economy in society
As an organisation, the Tax Administration is among the Finnish society’s major deterrents of shadow economy practices. If a company or person is part of the shadow economy, it means that they neglect to pay taxes or other payments required by law in order to gain various economic advantages unfairly. Practices falling into the category of shadow economy also include false claims for tax refunds and various schemes involving avoidance of customs charges.
The Tax Administration engages in an active combat against the shadow economy especially when working with new registrations of taxpayers, with audits and with other forms of fiscal control. Working together with several of our stakeholders, we also engage in many types of preventive work on an ongoing basis. Exchange of fiscal information within a network of tax authorities of different countries, and international cooperation at large, play an important role in the Tax Administration’s fight against the shadow economy.
To combat tax offences and other forms of white-collar crime, the Tax Administration also co-operates with several other public authorities of Finland. This has ensured a comprehensive approach to control and prevention of white-collar crime.
Fundamentally, our role as a participant in the efforts to dissuade the shadow economy relies on our ability to fulfil the requirements on ethics, to adhere to legal norms and non-corruption. Going forward, our role in the Finnish society will continue to be that of a trustworthy deterrent of the shadow economy.
13. Whistleblowing when rule abuse and other causes for concern arise
Any activity that contradicts with the Tax Administration’s ethics is likely to erode our good reputation and the feelings of confidence experienced by taxpayers and by the Tax Administration’s stakeholders. An occurrence of non-compliance with our requirements on ethics would cause serious risks and harm to the Tax Administration. For this reason, everyone at the Tax Administration is expected to take action whenever they observe or suspect breaches against ethics or other potential wrongdoing. Any employee can contact their immediate supervisor or, alternatively, the employee can use the special reporting channel on the Tax Administration’s intranet.
We are committed to work in an open organisational culture where everyone can communicate any personal concerns openly and as needed, share any observations or suspicions of improper conduct going against the Tax Administration’s requirements on ethics. We do not accept that a person who would communicate bona fide any suspected wrongdoing were to be punished later in any way. All kinds of negative consequences are prohibited when someone has taken such action.
We will investigate the received information and reports thoroughly, confidentially and impartially and without undue delay. We will respond to the problems and issues that have become known this way. Only the parties involved in the study of the matter or in the carrying out of necessary measures will be provided with information about the case.
The structured reporting scheme is in place because it can help the Tax Administration address non-compliance and seek further improvement of its activities.
Members of the stakeholder groups co-operating with the Tax Administration are invited to send reports on potential wrongdoing through the web service: The centralised external reporting channel of the Office of the Chancellor of Justice
When reporting breaches directly related to tax and fiscal issues, anyone is entitled to use the Tax Administration’s web service created for the purpose: Report suspected tax evasion