Nokia executive Olli-Pekka Kallasvuo pays massive fine for minor tax fraud

Olli-Pekka Kallasvuo

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Nokia President and COO Olli-Pekka Kallasvuo, has paid a fine of more than EUR 31,000 after admitting to minor tax fraud. The sum consists of 30 income-linked "day fines" of slightly more than EUR 1,000 each.
      The case involves an attempt by Kallasvuo to import more than EUR 11,000 in goods from Switzerland without paying tax or customs duty in September 2004.
      A public trial was avoided in the matter, as it was handled as summary penal judgement by Kallasvuo, Finnish Customs, and the prosecutor’s office.
      The case goes back to September 25th, 2004 when Kallasvuo arrived in Helsinki shortly before midnight on a flight from Zurich, bringing with him a variety of goods that he bought while out of the country: a suitcase, two pairs of men’s shoes, a men’s jacket, a shirt, a watch, various antiques, and silver objects.
      Kallasvuo had claimed a refund of Swiss VAT - nearly EUR 650. After refunding the tax, Swiss customs sent a fax to Finnish customs, tipping off the authorities here about the large rebate, so that they might be on the lookout, to make sure he declares his imports. The cooperation between the authorities is based on an agreement between the EU and Switzerland.
     
According to the description of events in the summary penal judgement, Kallasvuo failed to declare his purchases at Helsinki-Vantaa Airport, by "choosing the green lane" in customs.
      When interrogated, he said "I took my goods and left".
      Helsingin Sanomat has learned that customs authorities were ready to stop Kallasvuo at the corridor linking the international terminal with the domestic flights terminal. They were also prepared to stop Kallasvuo at the exit. He nevertheless managed to slip out of the airport unnoticed.
      Investigators later caught up with him at his home.
     
During interrogation, Kallasvuo said that he had "not even thought about" declaring the goods, even though he had claimed the VAT rebate at Zurich airport just before the departure of his flight.
      "I travel much, mainly in Europe, and I did not notice that I was coming from outside the EU when I came from Switzerland", he explained to his interrogators.
      "I did not feel that I was bringing in anything special. I felt that I was buying personal items for my own use."
      Based on his monthly income of about EUR 30,000, his day fine was set at 1,058.
      The 30 day fines, in addition to the value of the purchases, and the taxes and customs duties, mean that the goods that Kallasvuo brought home from his trip ended up costing nearly EUR 45,500.
     
Nokia remained largely silent about the matter on Friday.
      The company’s head of communications, Arja Suominen, said that Nokia’s management and board learned about the event as soon as it had occurred.
      Kallasvuo was named Nokia’s President in August last year. He will take over the duties of CEO Jorma Ollila in the summer, when Ollila leaves the operative management, to take on the part-time task of Chairman of the Executive Board.


Previously in HS International Edition:
  Jorma Ollila to leave post as head of Nokia at end of May 2006 (2.8.2005)

Links:
  Nokia Executive Board: Olli-Pekka Kallasvuo

Helsingin Sanomat