Lobbying and tax regulation

the influence of interest groups on Finnish dividend taxes 2004-2014

Authors

• Santtu Raitasuo Tampereen yliopisto
• Matti Ylönen Helsingin yliopisto
• Heikki Hiilamo Helsingin yliopisto

DOI: https://doi.org/10.37452/politiikka.131061

Keywords:

tax law, lobbying, tax planning, regulatory capture, dividend tax

Abstract

Finnish dividend tax legislation has been referred to as exceptional in an international comparison as it treats wealthy taxpayers favorable. The article examines how lobbying affected the evolution of dividend tax legislation in Finland between 2004 and 2014. The article asks which business actors have influenced the regulation and by which means. A policy subsystems framework is applied to the analysis. The primary source of information is an analysis of 23 interviews with Finnish tax experts. During the reviewed period, lobbying influenced the content of dividend tax regulations, despite criticisms from both social justice and economic competitiveness. We conclude that the dividend tax regulation has the characteristics of the regulatory capture, where a private stakeholder has acquired ownership of regulation.