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How some 1.206 Swedish Big Corporation get away with paying no taxes or very little taxes if they like to pay
Sunday, 18 March 2012
The argument
has always been that big corporations will employ more people and
contribute more to the state treasury in the way of increased tax
intake. This is one of the reasons why Sweden is so observed with big
corporations and would do all to pursue them weakly when it come
to checking if they are paying their fare share of taxation…Right?
Wrong!
It has now been exposed that that one third of Swedish group of big companies (that is some 1.206 companies)
pay nothing or very little in corporation taxes. Swedish
television has once again exposed this racket carried out by the
Swedish big companies that pay their bosses astronomical salaries and
bonuses but know all the tricks in dodging taxes.
Swedish
television identified four groups that pay more than three
billion in corporate taxes in Sweden in 2010: TeliaSonera - Skr4.366
million, Astra Zeneca - Skr4.242 million, H & M Skr3.993 million
and State owned energy company, Vattenfall Skr3.509 million.
In the bottoms
of the list are seven groups of companies that pay no income tax at all
or if they happen to pay they pay very little. They are Atlas
Copco, Nordstjernan, Sandvik, SCA, Securitas, Volvo AB and Volvo Car
Corporation will pay nothing or very little in corporate taxes in 2010
despite the fact that all corporations reporting a profit for its
shareholders in the same year.
No group is
under investigation for fraud, which according to the report is
contrary to the law relating to the Swedish tax laws.
Creative
accounting has been used in many big corporations in the developed
countries especially in the big corporation in the countries such as
the UK, USA and now publicly acknowledged in Sweden. This has led to
increased bleeding of the treasury in favour of the few wealthy
individuals, smaller businesses and kills competition.
When the USA
president, Barack Obama, for example identified these loopholes in the
corporate tax systems and proposed that the wealthy corporations and
individuals in the US who might have benefited from such tax loop holes
pay more in taxes and proposed what became known as the Buffet role,
after Warren Buffet who openly criticised the American tax system that
made it possible for the wealthy to get away with virtually no taxes,
the President was attached for waging war against the wealth creators.
But studies
also in the USA showed that as the big corporations where getting
richer, job creation to reflect their argument of wealth creation was
not there. Whereas smaller companies and the middle class were going
out of business because of the heavy tax burden heaped on them.
Similar
situation has been observed in the UK and also in Sweden. In Sweden
heads of the country’s biggest banks and corporations such as Ericsson,
Astra Zeneca, Atlas Copco, Sandvik, SCA, Securitas, Volvo AB etc., have
been well rewarded in pay and bonuses but these companies have not
created the large amount of jobs that one would associated with an
environment that is creating more wealth. Instead these companies that
have benefited from the best skills developed in Swedish schools, some
of the best healthcare for them and their worker, good transport
systems, proper security for their huge wealth and their that of their
companies as well as their huge financial transactions, just to name
these have bet not needed to pay taxes in the country.
Had we seen
these companies ploughing back some of these huge tax gains to create
jobs, support smaller companies which will on the whole, put more
people back to work and thereby reduce government spending in the way
of reduced social benefit payments, it could be acceptable that these
companies could get away with these tax loot. But they are instead
looking for cheaper labour from Eastern Europe and outsourcing
production to cheaper South East Asian countries.
It is the first
time a public review has been carried out on Swedish largest companies
and we are not sure if the study has been driven by our persistent
cried on this network about the over-taxation of smaller companies in
this country. Last year we wrote a lot about how Swedish smaller
companies are over pressured by the state and that the big Swedish
companies got away with almost everything. We also wrote directly on
issue relating to that the Swedish government is over obsessed with the
big companies at the detriment of smaller ones.
Some of the
feed backs we received from anonymous sources then accused us of waging
a campaign against big corporations because we had a platform to
publish what ever we deemed. We were also accused of lacking the skills
of developing our own organisation to grow – maybe because we did not
know hoe to play the tax system.
Apparently, Swedish television also has a platform to publish what ever they like.
All the
companies that have paid no taxes say they followed the laws but they
are right because no one has pursued them from the Swedish tax
authority. Therefore their books were seen as clean.
The OECD, the
organization representing the Western, industrialized countries have
adopted new guidelines urging companies to do the right thing. It is
not enough to follow the law, but the OECD presses the companies to
follow the intentions of the legislation.
By Scancomark.se Team
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