This is a discussion from Parlaiment from beginning of 2005 that I translated into English.
Written question

KK 992/2004 vp - Paula Risikko /National Coalition Party
WRITTEN QUESTION 992/2004 vp
Improvement of the law regarding publicity of tax records.
To the Speaker of Parlaiment
The law regarding the publicity and secrecy of tax records (1346/1999 ) defines that such tax records are to be kept secret, which have information regarding the tax payer’s financial standing, excluding those details, which are defined as public in 5-9 and 21 of this law. The taxpayers income, paid tax, amount of prepaid tax and tax returned or tax to be paid are defined as public tax records.
The previously mentioned procedure is a result of attempting to achieve a fair relation between the tax authority’s transparency and increased trustworthyness by increasing openness and on the other hand protecting the person’s privacy and, among other things, business secrets.
It is correct and worth supporting that the citizens have, for example through the media, a possibility to get information from, for example, officials, business leaders and politicians’ salary levels and the extent of possible side incomes and tax percentages.
In this case, the starting point should be that the tax authority’s information should be as correct as possible. The goal is not completely achieved in the current framework of the legislation regarding the publicity of tax records. Tax records are, in practicality, public only in the stage that the taxation is ready. Taxation is a broad and complicated process, that there will always be a certain number of mistakes. The taxation is fixed and the mistakes are corrected sometimes even years after the taxation is ready.
The probem is that tax records which are cleaned of mistakes and fixed are, in practice, no longer public information. Faulty information has been possibly published when the tax records were ready, but the fixed and correct tax information is no longer public. The corrections remain secret, but the faulty information continues in circulation. Even when someone complains about their own taxation, it is secret information in practice.
There are numerous examples, which have been also publicized, for example, economics reporter Tuomo Pietiläinen presented good arguments regarding this in his column (HS 6.11.2004). The author concludes that in public tax records, there has been anomalies and mistakes nearly every year. A businessman, who was completely broke is in the top for property statistics, or a fireman who has a salary of 16 million Euros.
Another problem with public tax records is shown in another practical example: Underage siblings had recieved corporate stocks as an inheritance and gift. The parents intention was to handle the children’s ownership of the stocks in such a way, that the dividends were reinvested into buying the siblings more stocks. In the familiar way we have seen in the recent years, the regular growth of the stocks increased suddenly in a dramatic way, and this showed later in the children’s tax records. The underage children, because of the way they were raised, didn’t know very much about the nest-egg that would be waiting for them when they are adults. Their names were published together with the other tax records in newspapers, and the result was quite difficult and trying situation to be come the object of publicity. This also included, among other things, a death threat and completely unfounded hinting that the family was practicing tax planning.
It is clear that the legislator did not intend for his law to work in the way presented in the real life examples mentioned previously. Therefore there is reason to clarify the text of the law to better serve the original purpose.
The legislation regarding the publicity of tax records will probably need to be changed in, for example the stopping of wealth tax ….. In conjunction with this is a natural opportunity to change other observed problematic areas.
Based on the previous and according to the Parlaiment Rules of Procedure 27 I present the following question to be answered to the concerned members of the government council:
Is it in the knowledge of the government the practical effects of these certain injustices in the law regarding publicity of tax records and how does the government intend to correct the deficiencies in the legislation regarding the grievances presented here in the previous arguments?
Helsinki 14 December 2004
Paula Risikko /National Coalition Party
To the Speaker of Parlaiment
In the Parlaiment Rules of Procedure in the intent of 27 § You, Mr. Chairman, have delivered Representative Paula Risikko’s (National Coalition Party) written question to be ansered by the concered minister. KK 992/2004 vp:
Is it in the knowledge of the government the practical effects of these certain injustices in the law regarding publicity of tax records and how does the government intend to correct the deficiencies in the legislation regarding the grievances presented here in the previous arguments?
As an answer to to the question I present the following:
The publicity of tax records has been, from old times, valid during the whole period of the current tax system. There has often arisen discussion, because tax records do not naturally tell the whole truth about citizens’ wealth and income. In recent times, the situation has emphasized movement of capital because of internationalization. it is a problem of its own, the problems that are created when the occasional mistake pops up in tax records that the asker is referring to, despite the fact that their significance has noticeably decreased as the correctness of the tax records has increased. When we take into consideration that tax events are in the millions, mistakes actually happen surprisingly little. Even one mistake is, of course, too many, and they should not be underestimated.
We last had a broad and lively discussion about the publicity of tax records around half way through the last decade. It was brought forward from the level of the officials the possibility of giving up public tax records, which were considered in modern circumstances to be unnecessarily exposing information that belongs in the sphere of privacy. Using statistical methods, we can get a rather precise picture of society’s structure of income and wealth. In the modern world, tax surveillance methods have become so well developed, that public tax records are no longer necessary for so called neighbour control. The discussion that occurred at that time however received the same blunt verdict from many different politicians: there is not one party in Parliament that is prepared to support even partially limiting public tax records. It was generally held from the viewpoint of societal morals to be important, that also singular persons’ income and wealth information be made public. Something that certainly affected this was pure human curiosity. For the media, it is also a question of money. We can return to this discussion at any time, when the time seems right. Since there are really no grounds for this system, there would probably be no opposition from the Ministry of Finance government. So the question is a purely political matter.
Helsinki 5 January 2005, Vice Minister of Finance, Ulla-Maj Wideroos