Friday, February 24, 2006

NORMAL LIFE: I Hate Tax

Since returning to Finland last December, I have literally been hounded by the Finnish authorities for issues relating to tax. God, I hate taxes! In 2004, I had paid €2,800 to the the Department of Health & Social Security in the UK; I had chosen to remain in the UK Social Security system due to the temporary nature of my employment (e.g. it was a two year contract) and to ensure that I had access to services in respect of my hearing device.

In May 2005, I was sent a proposal for my taxes for 2004 by the authorities. Somehow I had underestimated my income for 2004 and owed the authorities €1,080. However, knowing I had €2,800 of social security costs to deduct, I wrote a letter in June (enclosing copies of the Social Security invoices) and forgot about it.

My work in Helsinki came to an end in September 2005 and I returned to the UK for a brief spell, before deciding to return in December. Within days of registering my return, letters from the tax office have flown through my letterbox, claiming I have not paid the outstanding sum of €1,080. Fortunately, I had kept my letter from June 2005 (the one with the invoices) so I faxed this through to the authorities. In order to withold payment, I would have to write a letter requesting the right do this. I wrote a letter and faxed it to them.

In the meantime, the authorities have checked my file and have discovered that the Company had paid my moving costs from Tampere to Helsinki in August 2003. Apparently, this constitutes a 'benefit in kind', even though I didn't receive my first month salary under Finnish taxation until September 2003! An additional €1300 (taxable value) has now been added to the liability. Shockingly, my employer didn't tell me that such a benefit would be taxable.

A week later, I received the bills again, this time with PENALTY charges for non-payment! They hadn't actioned my letter of June 2005 nor the request for withholding payment. I couldn't believe it! Last night, I paid the taxes (€1,080), but Bree and I also made a claim for the social security costs. In the meantime, the Company's lawyers are arguing my case concerning the relocation costs. Apparently, it could take a year for the authorities to decide on the outcome of each of the issues. Bastards!

Did I mention that I hate taxes?