Ombudsman urges Ministry of Justice to resolve tax dispute with Ministry of Finance in Finland

The Parliamentary Ombudsman has urged the Ministry of Justice to resolve its long-standing conflict with the Ministry of Finance regarding the tax status of inmate wages. The Ombudsman expressed that it is unacceptable for these ministries to have disagreed on this issue for nearly two decades without reaching a resolution.

In a report, the Ombudsman highlighted that the Ministry of Justice has not responded to advice given in 2007, which recommended improvements in the handling of taxation related to inmate earnings. Last year, inmates complained about not securing pension rights for the work they perform during their incarceration.

The Ombudsman has stated that according to income tax laws, compensations received by inmates for their work should be regarded as taxable income. It is asserted that the state should comply with its legal obligations for tax remittances, and the current position of the Ministry of Justice does not align with this requirement.

As a solution, the Ombudsman has called for the Ministry of Justice to amend its practices to comply with tax laws. If the dispute between the ministries remains unresolved following this recommendation, it will be up to lawmakers to address the issue.