Paper giant SCA accused of tax dodge
The Swedish hygiene and paper company SCA may be on the hook for a tax bill of more than a billion kronor as well as fines, according to Swedish Television News.
The broadcaster reported on Thursday that SCA quietly sold its centralized in-house bank, called SCA Finans, in 2004 for SEK 48 billion to itself in the Netherlands. The company then allegedly took an interest deduction on the sale back at headquarters in Stockholm.
Now, the Swedish Tax Agency is demanding the company pay SEK 928 million in back taxes and an additional SEK 186 million for providing incorrect information to the tax authority.
SCA appealed the decision but lost in court in March of this year. The company issued a statement on its website saying that it "complies with Swedish legislation."
The company went on to say that, "The internal reorganization was implemented following the prior approval of the transaction by the Swedish Board of Advance Tax Rulings in the form of an advance ruling. The Swedish Tax Agency has since changed its opinion in relation to this issue and a dispute is currently ongoing."