A recent report by Finnwatch sheds light on how five notable social media influencers in Finland are leveraging holding company structures to minimize dividend taxation. These influencers, including Sara Sieppi, Lauri Vuohensilta, Enni Koistinen, Rosanna Kulju, and Jooel Vatanen, have strategically organized their business entities to reduce their tax liabilities through share exchanges.
The report reveals that these arrangements can yield significant tax benefits, with potential savings exceeding €10,000 in the first year alone. By inflating the net assets of their holding companies, influencers can qualify for more favorable tax treatment on dividends, exploiting a loophole in the Finnish tax system.
Finnwatch’s tax expert, Saara Hietanen, emphasizes the ethical concerns surrounding these practices and calls for legislative action to close the loophole. While some influencers cite reasons like risk mitigation in foreign markets for their arrangements, Finnwatch argues that such tax advantages were likely unintended by lawmakers and could result in substantial revenue losses for Finland.
The organization’s report underscores the urgency for government intervention to address these tax planning strategies and ensure fairness in the tax system. With the potential impact on public finances, Finnwatch’s advocacy aims to promote transparency and equity in tax practices within the influencer industry.
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