Tax fraud is the most common economic crime

Typical economic offences are tax offences, accounting offences and offences by a debtor. Other economic offences include fraud, embezzlement, securities market offences, environmental crimes, food crime, business secret offences, employment offences and human trafficking for labour exploitation. 

Grey economy causes major economic damage

The grey economy refers to lawful business activities where the statutory charges and taxes are left unpaid. Estimates of the grey economy’s share of Finnish GDP range from EUR one billion to up to EUR 14 billion. Crime entails economic losses for society when taxes and tax-like payments are left unpaid. Estimates of such losses range from a few hundred million euros to five billion euros annually. As the grey economy is mostly hidden, only some of these activities become known to the authorities.

In addition to lost taxes, the grey economy causes significant losses to entrepreneurs that operate within the law, as it weakens their ability to compete. It also offers domestic and international organised crime a way of spreading its influence within the economy and other societal structures. The construction and restaurant sectors are particularly problematic, but the grey economy also thrives in the transport sector, cleaning business, the shipbuilding industry and trade with Russia.

Strategy for Tackling the Grey Economy and Economic Crime

According to the Government Programme, the Government will continue working to combat tax evasion and the grey economy. 

The Strategy and Action Plan for Tackling the Grey Economy and Economic Crime is in the process of being updated. The Ministry of Economic Affairs and Employment is in charge of coordinating the process, with preparations being carried out through cross-administrative work together with different ministries and authorities. The update of the Action Plan is scheduled to be completed during 2024.

The Strategy and Action Plan for Tackling the Grey Economy and Economic Crime for 2020–2023 will remain in force until an updated resolution has been adopted.

The objectives of the Strategy for Tackling the Grey Economy and Economic Crime are to:

  • promote healthy competition between companies and a fair labour market,
  • prevent the grey economy and economic crime,
  • ensure the ability of authorities to combat the grey economy and economic crime,
  • develop measures to combat the grey economy and economic crime and improve cooperation between authorities.