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Tax number crackdown on off-the-books builders

A new tax number system is being introduced to combat the grey economy in the construction sector. From next year, construction workers will need to wear a badge featuring their own personal Taxpayer identification Number (TIN) to gain access to building sites.

Betonimylly
Image: YLE

The number will ease checks on whether workers are paying tax and national insurance contributions, and will have to be used by both foreign and Finnish workers.

Finns will receive their numbers automatically with their tax card – a document sent by the tax office each year detailing the tax percentage each worker must pay in Finland’s progressive income tax system – while foreign workers can apply for one from the tax office.

The objective of the new system is to root out the grey economy in the construction sector, which has been a worry in recent years. According to Jouni Ruotsalainen of the Turku branch of the Finnish Construction Trade Union, 70 percent of the roughly 25,000-30,000 foreign construction workers in Finland work off the books.

If builders come to work without a photo-card featuring their TIN, they should not be admitted to the site. Sites will have a six month transition period to implement the new system, which will be backed by a public register of construction workers.

The approach is different to that taken in the catering trade, in which industry bodies have criticised business owners and avdocated a minimum price below which consumers should suspect the company of graft.