Impacts on society

We are an employer and taxpayer in Finland 

We are a significant economic operator and employer in Finland. Our operations has significant direct and indirect economic impacts, both locally and nationally. The impact of our investments is particularly visible in our network areas. Our reliable electricity network ensures that our customers, from households to businesses, communities to municipalities, have electricity every day of the year.

The main principles on Caruna’s taxation are based on Finnish tax legislation and Caruna’s financial policy

The main principles on taxation are described in our financial policy, which is based on Finnish tax legislation, Caruna’s business strategy, corporate responsibility, risk management policy, and Code of Conduct. Caruna’s financial and other policies are reviewed by Caruna’s Board of Directors annually. The Board of Directors approves the financial policy and all related amendments..

The main principles and guidelines on our financial policy covers all direct and indirect taxes related to our operations, such as corporate income tax, electricity tax, value-added tax, capital gains tax, transfer tax and real estate tax. Our tax footprint also includes the income tax and social security contributions withheld from employees’ salaries.

Caruna’s CFO is responsible for implementing the main principles and guidelines on taxation and proposing any necessary changes to the Audit Committee and to the Board of Directors. Our way of operating applies to all Caruna companies and the employees who work for Caruna’s businesses, especially those whose jobs involve tax-related matters.

Taxation methods are based on laws and regulations

We comply with the laws, regulations, and established interpretations of tax law, taking into account the letter and spirit of the law. We monitor changes in tax legislation and obligations and analyse the impacts. We use tax advice services, if necessary, in the event of any uncertainty or amendments to tax laws. Caruna’s financial management coordinates the purchase of tax advice services.

We pay all our taxes in Finland, and the taxes we pay have a positive effect on economic well-being in Finland.

Our tax risk management is based on the Group’s risk management policy. We proactively identify, assess, and manage the financial, operational, reputational, and conformance risks related to taxation.

Our taxation and the basis for our taxation is predictable and transparent. We disclose our taxes in our consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). We provide the Tax Administration and other stakeholders involved in processing taxes with all the information necessary to process the matter. We submit our tax returns on time, and we pay our taxes in the correct amounts at the correct time.

We safeguard shareholder value by striving to make the most cost-efficient business transactions, business solutions, and optimal tax processes.

Our transfer pricing is based on the OECD’s arm’s-length principle. The arm’s-length principle applies to all intra-Group transactions.

Transactions related to our taxation are always related to our business activities. We plan our taxes within the spirit of tax laws and always on business terms. We are not involved in any artificial arrangements or structures created purely for tax purposes. We do not engage in aggressive tax planning, nor do we operate in any countries defined by the EU as non-cooperative tax jurisdictions.

Sponsorship and charity

We support responsible Finnish actors and associations in our network areas. 

Every year, we select some local organisations within our network area to support through sponsorship. We also cooperate with entities whose values are compatible with our own.