Appeals – minimum tax rate for large-scale groups

A constituent entity may appeal against the Tax Administration’s top-up tax decision and separate decision (decisions on a late-filing penalty and punitive tax increase) by submitting a claim for adjustment to the Assessment Adjustment Board. Submitting a claim for adjustment to the Assessment Appeal Board is free of charge.

A constituent entity may claim adjustment of a decision on top-up tax, a decision on late-filing penalty and a decision on a punitive tax increase.

• The Tax Administration can impose a top-up tax on a constituent entity based on a top-up tax return. In that case, the constituent entity will receive a decision on top-up tax showing the amount of top-up tax to be paid and any late-filing penalty and punitive tax increase. 
• The Tax Administration may also impose a late-filing penalty or a punitive tax increase on a constituent entity on the basis of a GloBE information return and a notification of the filing constituent entity. If so, the constituent entity will receive a separate decision on a late-filing penalty or a punitive tax increase.

Who has the right to appeal? 

According to the act on the minimum tax rate for large-scale groups, an appeal can be filed by:

• a constituent entity
• any other party whose top-up tax may be directly affected by the tax assessment
• a party liable to pay the tax, and
• the Tax Recipients’ Legal Services Unit. 

When can a claim for adjustment be filed?

A constituent entity can make a claim for adjustment within four years from the beginning of the calendar year following the end of the accounting period. However, it is always possible to file a claim for adjustment within 60 days of the receipt of the decision. Instructions for appeal are enclosed with decisions issued based on the act on the minimum tax rate for large-scale groups. The appeal period can be checked in the instructions.

The constituent entity can make a claim for adjustment immediately after receiving a decision on a late-filing penalty or punitive tax increase imposed based on a GloBE information return or a notification of the filing constituent entity. 

A claim for adjustment regarding a decision on top-up tax can be filed after the tax assessment has been completed. The tax assessment ends on the date indicated in the tax decision.  

The claim for adjustment becomes pending and can be processed only after the tax year’s taxes have been assessed and the tax assessment has been completed or a separate decision on a late-filing penalty or a punitive tax increase has been issued. 

If the deadline for the claim for adjustment is a Saturday or Sunday, the claim must be made no later than on the next business day. If the constituent entity makes a claim for adjustment in MyTax, the claim must arrive at the Tax Administration by 23.59 on the due date. A claim for adjustment submitted on paper must arrive at the Tax Administration by 16.15 on the due date.

How can a claim for adjustment be made? 

You can file a claim for adjustment in MyTax. 

1. Go to MyTax (opens in a new window)
2. Log in to MyTax and select the Tax matters tab.
3. At Claims for adjustment, click All adjustment matters.
4. Click Claim for adjustment to the Assessment Adjustment Board (all tax types).
5. Go to the appropriate accounting period and click Make a claim for adjustment.

If you cannot use MyTax, you can claim adjustment by submitting a free-form request on paper. 

Requirements for the content and form of the claim for adjustment

In accordance with the act on the assessment procedure, a claim for adjustment must be made in writing. Adjustment cannot be claimed if the matter has been resolved with a decision issued on an appeal. 

According to the Administrative Procedure Act, the claim for adjustment must specify:

• the decision to be adjusted
• what kind of adjustment you seek 
• on what grounds you request adjustment of the decision.

How to act after filing a claim for adjustment 

The top-up tax and negligence penalties imposed must be paid by the due date, even if the constituent entity has filed a claim for adjustment. If needed, the constituent entity can request a payment arrangement or an order preventing enforced recovery of its tax debt for the duration of the processing of the claim for adjustment.

You can follow the processing of the claim for adjustment in MyTax: go to the Communication tab, select Status of returns and requests and then View the processing status.

After the claim for adjustment has been processed, the constituent entity will receive a decision in MyTax. 

Can the Tax Administration adjust top-up tax or a decision on negligence penalty at its own initiative?

The Tax Administration can adjust a constituent entity’s top-up tax after the tax assessment has been completed. Following the adjustment, the constituent entity may receive a tax refund or may need to pay an additional amount of top-up tax. 

The Tax Administration can adjust the top-up tax within six years from the beginning of the year following the end of the accounting period.

The Tax Administration can adjust the top-up tax to the taxpayer’s benefit if the top-up tax imposed was too high because of an error in the tax assessment.

The Tax Administration can adjust the top-up tax to the constituent entity’s detriment if no top-up tax has been imposed or if the tax imposed has been too low. In these cases, the Tax Administration will adjust the taxation and impose the missing amount of tax.

The tax assessment is not adjusted if the Tax Administration has examined and specifically resolved the matter. However, the tax assessment can be adjusted if

• the decision was based on incorrect or incomplete information
• such new information has been received which could have affected the decision
• there is a typing or calculaton error or some other such error in the decision.

The Tax Administration cannot adjust a matter that has been resolved with a decision issued on an appeal lodged by a constituent entity.

If the constituent entity is unhappy with an adjustment the Tax Administration has made at its own initiative, it can request a review of the decision by filing a claim for adjustment.

Read more (available in Finnish and Swedish, links to Finnish):

Appeal against the Tax Administration’s decision

Principles of tax assessment