Markku Heikura, Director General of Finland's Tax Administration (Verohallinto), discussed the agency's digital transformation strategy and service delivery challenges during a live interview at the Vero2026 tax conference, addressing concerns about reduced staffing levels and longer response times following the departure of approximately 800 employees over two years.
Heikura acknowledged that budget cuts have affected service quality, particularly for tax card services where response times extended significantly, though the agency has since improved average phone response times to four minutes. He recommended taxpayers use digital channels for tax affairs rather than telephone services.
Digital-First Policy
Finland plans to implement legislative changes requiring citizens to receive official communications through digital channels unless they explicitly opt out. Under the proposed system, taxpayers who use any government digital services would be deemed digitally capable and automatically enrolled for electronic communications.
The Tax Administration currently spends €17 million annually on paper correspondence. Heikura suggested a radical approach where taxpayers choosing paper communications would pay fees, potentially €1 per letter, though he acknowledged this conflicts with administrative law requiring free public services.
Data Access and Revenue Recovery
Heikura defended the Tax Administration's expanded data access rights, noting that comparison data analysis identified €100 million in unreported income last year. He estimated that cryptocurrency income alone could generate €15-30 million in additional tax revenue if properly captured.
Regarding a pending legislative proposal on tax authority information access rights, which critics argue conflicts with EU data protection regulations, Heikura emphasized the revenue importance for Finland's fiscal situation.
Technology and Future Taxation
On data security concerns about Finnish tax information in US cloud services, Heikura expressed confidence that cloud platforms provide better security than internal data centers. Regarding artificial intelligence and automation, he dismissed robot taxes as easily circumvented but suggested potential data usage fees.
Heikura also proposed sector-specific taxation, advocating for higher taxes on raw material extraction while offering reduced rates for value-added processing to encourage domestic manufacturing and establish mineral wealth funds.
