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Swedish Government’s Tax Revenue in Jeopardy

Published fredag 13 mars 2009 kl 14.20
Anders Borg, Minister for Finance

A recent verdict by the Swedish Supreme Administrative Court could mean that the Swedish state loses millions. The decision opens up for large companies to interpret European law to their advantage.

Up until now, it has not been possible to close down a business abroad and use the losses to balance the company’s profit in Sweden - thus avoiding the Swedish taxes they would otherwise have to pay. But now, the court has made this possible in certain cases.

The Supreme Administrative Court has ruled in favour of 4 out of 10 cases where huge losses abroad were used by the companies to avoid Swedish taxes.

Minister for Finance, Anders Borg, says to Swedish Radio News that the last word has not yet been said. According to him, the rules are very likely to be changed.

”We will take whatever steps necessary to secure the government’s tax revenue,” Borg told Swedish Radio News.

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