Finnish Tax Administration calls for bankruptcy of Power Steel in Joroinen

The Finnish Tax Administration is calling for the bankruptcy of Power Steel, a company based in Joroinen. According to the agency, the company owes a total of €81,889.89 in unpaid taxes and payments, including interest on delayed payments. The largest debts consist of value-added tax and employer’s withholding, but there are also outstanding property taxes and employer’s health insurance contributions.

In early August, the Tax Administration issued a payment demand to the company, warning of the risk of bankruptcy if the debt was not settled within a week. The official demand was delivered to the company more than two weeks later, during which time Power Steel had filed for restructuring with the North Savo District Court. The court is expected to make a ruling on the matter next Friday.

Last Friday, the Tax Administration submitted the bankruptcy request to the district court.

Power Steel, established in 2006, has seen its operational situation deteriorate since the winter of 2021, coinciding with rising financing and rental costs. The company’s revenue for 2023 was approximately €1.5 million, a drop from €2.7 million the previous year. As of August, Power Steel was encumbered by nearly €450,000 in debt.