Skatteverket. Foto: Kenny Bengtsson/SvD/TT.

"Loss of prestige" for Swedish Tax Agency

The Swedish state has just lost a big tax case against a venture capital company, Nordic Capital, and Swedish Radio News reports that the outcome of this case could have an impact on many similar ones, and cost the state several billion kroner in tax income.

The Swedish Tax Agency had wanted Nordic Capital to pay SEK 700 million in payroll taxes and other taxes, but the Supreme Administrative Court is not giving the agency leave to appeal a lower court's ruling from last year, meaning that the agency will not get the money it had demanded.

For a long time, the agency believed that Nordic Capital was paying too little tax when it comes to a specific form of bonuses, called "carried interest" and that the company should have been paying 55 percent tax on them instead of 25 percent.

Roger Persson-Österman, a professor at Stockholm University, told Swedish Radio News that this means a loss in prestige for the agency. 

"There's been such a huge debate around this case, where a lot of leading academics have predicted this outcome. The Tax Agency has still persisted in its view, but now it can be said that they have lost. This is taken by many as a loss of prestige for the agency," said Persson-Österman.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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