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Home NATIONALMinisters reject Sipilä’s tax-break proposal
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Mon, 21 Jul, 2014 12:06:35 AM
FTimes-STT Report, July 21
 
center party leader Juha Sipilä. File Photo – Lehtikuva.
The exceptional support measure proposed by opposition Suomen Keskusta (Centre Party) leader Juha Sipilä for laid-off Microsoft workers was not warmly received by ministers.
 
The Keskusta chief, Sipilä, on Saturday suggested that the terminated employees should be allowed to benefit from tax breaks if they use their severance package to start up an enterprise.
 
Minister of Labour Lauri Ihalainen did not welcome the idea pointing out that the scheme could lead to tax gimmick.
 
According to Ihalainen, the axed workers should receive support from the state, local support measures as well as from the European Union funding.
 
Software Microsoft logo Keilaniemi in Espoo, Finland. Photo – Lehtikuva.
Ihalainen pointed out that instead of severance package, Nokia offered taxable funds for setting up enterprises. In addition, Nokia guaranteed bank loans to the workers on a case-to-case basis.
 
Economic Affairs Minister Jan Vapaavuori also dismissed the tax-break proposal. Vapaavuori said the idea had been discussed at the time of Nokia redundancy but the tax authorities held at that time that severance money was a taxable income.
 
 
 
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