The National Enforcement Authority Finland reminds you that tax refunds are used to settle enforcement debts

The tax refund payment period is approaching. The National Enforcement Authority Finland would like to remind you that tax refunds are also used to settle debts in enforcement.

Before a tax refund is garnished, the Tax Administration will deduct any unpaid taxes from the refund. This portion of the tax refund is not subject to enforcement.

The National Enforcement Authority Finland receives a number of enquiries regarding the garnishment of tax refunds, concerning matters such as the amount subject to garnishment and relief from garnishment.

A tax refund may be garnished in full before the due date of the demand for payment

Please note that

• A tax refund can be garnished in full. However, the garnished amount may not exceed the total amount of debts in enforcement. You can check the amount of your debt via the electronic service.
• Garnishment may take place even before the due date stated on the demand for payment.

• A payment-free month granted for the same month does not affect the garnishment of a tax refund. Furthermore, the protected portion of wages is not subject to garnishment in the case of tax refunds.
• The garnished amount cannot be reduced on the grounds of, for example, high housing or medical bills.

Most tax refunds are paid out in early autumn

The tax refund payment schedule for this year is similar to last year’s. The first tax refunds will be paid out in early July (refunds for traders, self-employed persons and farmers). Most tax refunds are paid out in early August and September; the highest number of tax refunds are garnished in July and August. The final tax refunds are paid out in early December.

The National Enforcement Authority Finland is notified of tax refunds payable to debtors well in advance of the payment date. Information on garnishment is forwarded to the Tax Administration, which pays the garnished amounts directly to the National Enforcement Authority Finland.

Questions and answers

How much of my tax refund can be garnished?

Your tax refund may be garnished in full if you have debts in enforcement that amount to at least the value of the tax refund. Only part of the tax refund is garnished if the debt is smaller. You can check the total amount of your debts in enforcement in the electronic service.

Why was my tax refund garnished before the due date stated on the demand for payment?

A tax refund may be garnished before the due date stated on the demand for payment The debt stated on the demand for payment may therefore be settled by the garnishment of the tax refund.

Can you avoid having your tax refund garnished by applying for a payment-free month?

No. The protected portion of the garnishment of wages or payment-free months have nothing to do with the garnishment of tax refunds. Nor is the garnished amount of tax refund reduced, for example, because of high housing or medical bills.

How will I know if my tax refund has been garnished?

You will receive a decision on garnishment via the Suomi.fi Messages service, if you have access to it. Otherwise, you will receive the decision by post. You can also print out the decision for yourself from the National Enforcement Authority Finland’s electronic service.

I have been informed by the Tax Administration that my tax refund will not be paid to the enforcement authority. Is this true?

If you have any outstanding tax liabilities, the Tax Administration can set off any unpaid taxes against your upcoming tax refund. The tax refund will then not be paid to the enforcement authority and will be used to settle debts in enforcement.

Can I appeal against garnishment?

You can appeal against garnishment to the district court responsible for enforcement matters, in accordance with the instructions for appeal provided with the garnishment decision A court fee is charged for hearing an appeal before the District Court. No fee is charged if the court overturns the decision in favour of the appellant, nor will you be charged if you are receiving legal aid. Before lodging any appeal, we recommend that you read the information on this page regarding the garnishment of tax refunds.