Tackling undeclared work database

Undeclared work can be defined as work which is in itself legal but is not declared to the authorities for tax, social security and/or labour law purposes. Across the 28 Member States of the European Union, a great deal of effort is being invested into developing and testing policy measures that aim to tackle undeclared work.

7 items found (page 1 of 1)

Grey Economy Information Unit, Finland

02 June 2013
  • Finland
  The Grey Economy Information Unit was established by law on 1 January 2011. It is a specialist unit within the tax administration department, whose brief is to gather information and conduct investigations into undeclared work and other types of undeclared economic activity. The unit was based on a previous collaborative project between various authorities.  
  • Type of measure:

    Deterrence: improve detection

Contractor’s obligations and liability act, Finland

02 June 2013
  • Finland
  The Act on ‘The contractor’s obligations and liability when work is contracted out’ requires that the party responsible for a construction project obtains the necessary guarantees that subcontractors will fulfil their various obligations. The law has been in effect since 2007, but obligations in the construction sector were amplified in 2012.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Reverse VAT in construction, Finland

02 June 2013
  • Finland
  Reverse VAT is a system used in the construction sector in which VAT is paid by the buyer (main contractor) as opposed to the seller (subcontractors), as is usually the case. The purpose is to ensure the due collection of VAT and discourage the use of undeclared work.  
  • Type of measure:

    Legitimising undeclared work, Prevention

Transitory restriction on free movement of workers, Finland

28 October 2009
  • Finland
  Undeclared work may be responsible for a significant proportion of total output in the Finnish economy, particularly in certain economic sectors such as construction, hotels and restaurants, or personal services. After the expansion of the EU in 2004, Finland introduced a transition period limiting the free movement of workers from the new Member States, as it anticipated a large influx of workers from these countries. However, the measure is deemed unsuccessful and only had a modest impact on the volumes of foreign workers coming to Finland.  
  • Sectors

  • Type of measure:

    Legitimising undeclared work

Tax credit for domestic help, Finland

25 June 2009
  • Finland
  This case example describes the role of the ‘tax credit for domestic help’ scheme in reducing the incidence of undeclared work in Finland’s household services industry. The initiative enables the purchasers of such services to deduct a proportion of the cost through the tax system, thereby providing an incentive to employ workers in the formal sphere. In 2009, the maximum deductible amount has been increased to €3,000 and the coverage has been extended to other services such as the installation and maintenance of information technology (IT) in the home.  
  • Type of measure:

    Changing attitudes: awareness raising, Changing attitudes: commitment to tax morality, Deterrence: improve detection, Legitimising undeclared work, Prevention

Obligatory personal ID in construction, Finland

13 April 2009
  • Finland
  Undeclared work may be responsible for a significant proportion of total output in the Finnish economy, particularly in certain economic sectors such as construction, hotels and restaurants, or personal services. In February 2006, an amendment was made to the Occupational Safety and Health Act introducing an obligation to wear personal identification (kuvallinen kulkulupa) on building sites. This should help to curtail illegal practices.  
  • Type of measure:

    Legitimising undeclared work

Tax allowance for household services, Finland

13 April 2009
  • Finland
  Undeclared work may be responsible for a significant proportion of total output in the Finnish economy, particularly in certain economic sectors such as construction, hotels and restaurants, or personal services. Given the high proportion of undeclared work in small household repair activities, Finland decided to introduce a tax refund system to help legalise such work and curtail the level of undeclared work in this area.  
  • Type of measure:

    Legitimising undeclared work