According to KKV, the tax subsidy favors the OP Bank Group at the expense of other companies.
The Finnish Competition and Consumer Authority (KKV) is proposing to the Ministry of Finance the abolition of tax support for bonuses in the banking and insurance sectors. In its notice, the agency considers that the tax subsidy distorts competition between insurance companies.
According to KKV, the tax subsidy favors one company, the OP Bank Group, at the expense of other companies. The tax subsidy caused by the tax treatment of bonuses is estimated at EUR 100 million.
Currently, the Tax Administration’s interpretation is that bonuses are tax-free if they are used for service or insurance premiums by the same company.
– Substantial bonuses due to tax support, such as mortgages, are excluded from taxation. When bonuses are used for insurance premiums, this distorts competition between insurance companies, describes the director of KKV Maarit Taurula.
A couple of years ago, at the request of the insurance company If, KKV investigated whether the OP Bank Group’s bonus system significantly restricts competition in the non-life insurance market to the detriment of consumers. At that time, no evidence of abuse of a dominant position was found.
Source site www.is.fi