Complaints are brewing against Finnish government over car taxation snafus

An Uusimaa entrepreneur has filed a request for investigation with the police concerning the taxation of imported cars.
      In connection with his request, the entrepreneur argues that the Customs have consistently and without consideration violated the prevailing legislation. The police, therefore, should find out who within the Customs organisation needs to be punished for the legal offences, the entrepreneur demands.
      According to the plaintiff, at least the EU legislation has been violated against. The European Court of Justice rulings against Finland attest to this fact. The complainant also refers to “every man’s right to get his matter dealt with in due form and without unjustified delay”.
     
The entrepreneur brought into Finland three vehicles from Germany. For example in February 2001 he received a taxation decision with regard to a car he had imported, but his appeal against the ruling is still pending. Therefore, he is about to be refunded some VAT.
      The entrepreneur charges that so far none of the three cars he has imported have been taxed in accordance with the law. “This kind of conduct cannot be legal”, he concludes.
      In the request of investigation the Customs are mentioned in particular, but perhaps the answerable individuals can be found at the Ministry of Finance after all, the entrepreneur notes.
     
On Tuesday the police asked for further details from the plaintiff, but at least by Wednesday the matter had not yet officially booked in as a request of investigation.
      Other legal battles are also brewing with regard to the subject of car taxation. Car tax veteran Antti Siilin and his lawyer Petteri Snell, who specialises in car taxation, have agreed that they will apply with the Supreme Administrative Court for the nullification of the taxation decision regarding Siilin’s imported Mercedes.
      The taxation dispute around this very vehicle was the matter that brought down Finland’s taxation practice on imported cars at the European Court of Justice in 2002.
     
In addition to the so-called car tax, VAT was also levied on Siilin’s car. This was against the EU legislation, the latest ruling by the European Court of Justice reveals.
      Because the case is so old, the government does not promise it will refund the VAT.
      If the Supreme Administrative Court fails to reverse the VAT decision, a claim for damages directed against the government may be the next logical step, Petteri Snell explains.
      In Snell’s interpretation of the fresh EU court decision, the government cannot claim that it has acted sincerely and in good faith.
      “Already by the ruling from 2002, one should have known that the practice to levy VAT on imported cars was in violation of the EU legislation”, Snell argues.


Previously in HS International Edition:
  Court: Finland must repay tax to tens of thousands of Finns who imported cars (20.3.2009)
  European law expert criticises Finnish attitudes on car taxation (23.3.2009)
  Government to pay 2.5% interest for “non-VAT” refund to imported private cars (24.3.2009)

See also:
  Gentlemen, Start Your Engines: Trips being organised to buy used cars from Germany (26.3.2002)
  EU Commission takes Finland to court over car taxes (15.1.2008)
  Taxes on imported used cars to fall (19.9.2002)