verottamiseen

Verottaminen refers to taxation, the process by which a government raises revenue by imposing charges on individuals, households, and businesses, collecting those charges, and enforcing compliance with tax laws. It covers the design and operation of a tax system, including assessment, collection, and governance.

Tax types typically include direct taxes such as income tax and corporate tax, and indirect taxes such as value-added tax (arvonlisävero) and excise duties. Social security contributions are often integrated into the system as well. Some systems also levy property taxes or inheritance taxes, depending on the jurisdiction.

The objectives of verottaminen include funding public services and welfare programs, redistributing income, and influencing economic behavior. Principles commonly cited in tax policy are equity (fairness), efficiency, simplicity, and certainty. Transparency and accountability in how collected revenue is used are also emphasized.

Tax administration is usually carried out by a national tax authority. In Finland, for example, the Finnish Tax Administration (Verohallinto) handles tax assessment, collection, and enforcement under national laws, and provides services such as pre-filled tax returns and guidance for taxpayers. It administers personal and corporate income taxes, value-added tax, and other duties in cooperation with other authorities.

Mechanisms of verottaminen include defining tax bases and rates, applying allowances and credits, and using withholding at source, annual tax returns, audits, and penalties to enforce compliance. International dimensions involve double taxation agreements, transfer pricing rules, and information exchange to ensure proper taxation of cross-border activities.

Overall, verottaminen funds public services, supports redistribution, and can influence economic decisions. It also faces challenges such as tax avoidance and evasion, the taxation of the digital economy, and the need for international coordination to address base erosion and profit shifting.