Finnish police uncover €3 million tax fraud scheme involving shell companies

Finnish police have exposed an alleged €3 million tax evasion and social security fraud operation in southern Finland, involving a network of ten shell companies used to conceal illegal payments, national broadcaster Yle reports.

A two-year investigation by Helsinki Police found that a staffing and construction firm allegedly paid undeclared wages to employees between 2019 and 2021. The scheme involved fictitious subcontracting invoices to launder payroll funds, with shell companies used to obscure the identities of those responsible.

Over 20 individuals are suspected of involvement in serious tax fraud, accounting offences, pension insurance fraud, and false corporate filings. More than 100 people were interviewed during the probe, and some suspects were detained in 2024. Authorities also investigated over 20 workers for failing to report income.

The case was complicated by the use of foreign bank accounts, requiring multiple international legal assistance requests. Prosecutors will now review the evidence to decide whether to press charges.