Minister for Foreign Trade and Development Mykkänen discussed taxation issues with Finnfund and Finnwatch representatives
On 11 April 2017, Minister for Foreign Trade and Development Kai Mykkänen met representatives of Finnfund and Finnwatch to discuss taxation issues that have recently been on the public agenda, especially the investments of Finnfund to Dasos Timberland Fund I in 2010.
Minister Mykkänen is pleased with the discussions, which were conducted in a constructive spirit. The role of the private sector in development policy has grown, both in Finland and globally. At the same time understanding of the significance of taxation and taxation arrangements has improved as well. “We all agreed that investment decisions such as that concerning Davos would not be made in the same way today”, Mykkänen says.
Also on the agenda were the taxation of companies in the developing countries, taxation arrangements relating to the funds and openness. Tax liability is a high priority in Finnfund’s work. In the future the company intends to develop its operations by preparing tax guidelines which specify in more detail the framework conditions relating to taxation and openness. The guidelines are to be discussed with the Ministry for Foreign Affairs.
“What is still important is that risks, including operative ones, must be born in order to be able to help in the launch of important projects at the early development stage. At the same time the structures of the financial arrangements must be founded on a fair and just tax footprint and as much openness as possible must be required from the co-funders”, minister Mykkänen says.