Dealer convicted of embezzlement and tax fraud by Kanta-Häme District Court in Hämeenlinna

A dealer in art from Hämeenlinna has been found guilty of embezzlement by the Kanta-Häme District Court for failing to pay resale royalties related to art sales. Additionally, the individual was convicted of serious tax fraud and serious accounting violations. The court imposed a combined sentence of one year and one month of probationary imprisonment for these offenses.

The dealer is required to pay over €12,000 in overdue resale royalties to the copyright organization Kuvasto ry, along with compensation for legal costs. The court determined that the resale royalties must still be paid despite the identified deficiencies and ambiguities in the accounting related to the sales investigated by the police.

This long-time art dealer in Hämeenlinna had neglected to fulfill his tax and royalty payment obligations for several years. He failed to submit the annual reports required by copyright law regarding resale royalties for artwork sold from 2012 to 2022. The resale royalty, which is mandated by an EU directive, entitles artists to receive compensation whenever their works are resold. The responsibility for paying this compensation lies with the professionals involved in the sale—be it the seller, intermediary, or buyer. In Finland, Kuvasto collects and distributes these royalties to the rights holders.

Tommi Nilsson, the executive director of Kuvasto, noted that instances of malpractice occur within the art market. He expressed the importance of addressing cases like this to promote a more open and transparent market. He emphasized that not only does the resale royalty help prevent art forgery, but it also plays a significant role in the income generation for artists.