The law on the obligation to provide information, which will come into force at the beginning of July, brings everyone who works in construction to the light of day. This is a significant step in eradicating the illegal workforce when, starting this summer, both clients and main contractors and the tax authorities know who works on construction sites and who pays their wages.
Information on construction contracts, employees, employers and employment relationships must be reported to the tax authority on a monthly basis for each construction site. The reporting obligation also applies to repair and maintenance work.
The amount of data to be processed is massive, because according to the estimate of Rakennusteollisuus RT, there are up to 100 construction sites in progress in our country every year. Based on the tax authorities' information, there are almost 000 companies or other operators in the construction industry. About 60 people have been registered in the construction industry tax number register so far.
"Such a comprehensive system is not in use anywhere else in the world. We have prepared for the change by developing electronic solutions that allow the transfer of data to take place as smoothly as possible and without unnecessary bureaucracy," says the technical director of RAKLI ry, which represents the subscribers Ilpo Peltonen.
Thanks to the regular transfer of information, a complete picture of the construction sites and the people working on them is created, and it is easier to deal with possible abuses. Twenty new clerks have been hired at the Tax Administration to handle the data flow.
"The value of construction in Finland in 2013 was almost 30 billion euros. In the current economic situation, it is very important that all tax revenues are repatriated and jobs for honest operators. I believe that better knowledge of contract chains and improving the competitive position of professional operators will also help us improve the quality of construction," says Rakennusteollisuus RT's labor market director Tapio Kari.
The obligation applies not only to professionals but also to building societies and individuals
With the new law, everyone who orders construction services must report to the tax authorities on a monthly basis the information about the construction services ordered by the construction site, if the total amount of the order exceeds 15 euros. The obligation does not only apply to companies operating in the construction industry, but equally to, for example, municipalities and housing associations. Individuals must also declare the contract sums and salaries they paid before the final examination. The information must be provided whenever the work requires a building permit, regardless of the size of the contract.
In turn, the main contractor or, in its absence, the developer must notify the taxman monthly of the information on all persons who worked on the joint construction site. Correspondingly, every subcontractor must inform the main contractor of the information he needs. In the past, there has not been such an obligation, which is why the main contractor has not had the opportunity to keep a comprehensive number of employees on the site. The reporting obligation is a continuation of the tax number introduced in 2013 at construction sites.
The real estate and construction industry itself has been actively involved in shrinking the playing field of dishonest operators for years. In addition, Suomen Tilaajavastuu Oy, owned by the industry's key organizations, has developed the Veronumero.fi service, through which it is easiest to fulfill the reporting obligation.
More information on the notification obligation and notification practices:
Guide to the construction reporting obligation (pdf)
For more information:
Tapio Kari, labor market director, Construction Industry RT, tel. 0500 300 990
Ilpo Peltonen, technical director, RAKLI ry, tel. 040 551 9404