Helsinki (02.11.2010 - Juhani Artto) Data on the ever growing grey economy worries the union confederation SAK. "It is not only a question of lost taxes and fees but also the negative impact on the fairness of competition in business life, on the status of employees, on general tax morality and on the credibility of the entire tax system", SAK says in its large and detailed initiative on the grey economy, published on Tuesday.
The document includes 25 proposals on how to amend current legislation to make it a more effective weapon and barrier against the grey economy. These proposals are grouped into six blocks.
The first aims to put domestic entrepreneurs on an equal footing with foreign companies. As the situation now stands, according to SAK, foreign companies can easily evade their tax and other monetary obligations. It helps them win tenders unfairly as their costs are lower than those of their Finnish competitors.