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.

Caruna vastuullisuus: Vaikutukset yhteiskuntaan

Our tax policy is based on laws and regulations

Our tax policy determines the key principles for managing our tax affairs. We pay all our taxes in Finland, and the tax revenue that we pay has a positive effect on economic well-being in Finland.

Our policy covers all the direct and indirect taxes applying to our operations. These taxes include corporate income tax, electricity tax, value-added tax, capital gains tax, asset transfer tax, and real estate tax. Our tax footprint also includes the income tax and social security contributions withheld from employees' salaries.

The main principles and guidelines on taxation are described in our financial policy, which is based on Caruna's business strategy, corporate responsibility, risk management policy, and Code of Conduct. Caruna's Board of Directors approves the financial policy and all related amendments. 

Our tax policy is assessed annually. Caruna's CFO is responsible for implementing the policy and proposing any necessary changes to the Audit Committee. The Audit Committee assesses the policy and proposes all necessary changes to the Board of Directors of Caruna Networks Oy. The tax policy applies to all Caruna companies and all Caruna employees who work for Caruna's businesses, especially those whose jobs involve tax-related matters.

We use external tax advice services if necessary in the event of any uncertainty and amendments to tax laws. Caruna's financial management coordinates the purchase of tax advice services.

Key principles of our tax policy

We comply with the laws, regulations, and established interpretations of tax law in our tax policy, taking into account the letter and spirit of the law. We monitor changes in tax legislation and obligations and analyse the impacts.

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 do not create any artificial arrangements or structures purely for tax purposes. We do not engage in aggressive tax planning, nor do we operate in countries that the EU has designated as non-cooperative jurisdictions (countries that fail to comply with the principles of tax transparency and fairness in the EU's assessment).

Caruna's tax footprint

We are a Finnish company, and we pay all of our taxes to Finland. We report on our tax footprint, which is the income society receives from a company’s corporate taxes and tax-like payments.

In addition to direct and indirect taxes, our tax footprint includes the income tax withheld from our employees' salaries and social security contributions. The summary includes the taxes and tax-like payments that we are legally obliged to pay or collect from customers

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.

Read about the organisations we have sponsored (in Finnish)