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The pain of paying the high Swedish taxes as Local authorities accused for attempts to avoid taxes
Monday, 26 March 2012
It's not just
private equity firms that are trying to carry out tax planning to avoid
the high Swedish taxes, No! Municipal and counties are also working
hard to avoid paying taxes through various tax planning mechanisms. In
a review carried out by the Swedish Tax Agency some 25 municipal
corporations had been rejected their interest deductions.
This came after
the Swedish tax authority looked into a group of companies owned and
working for various local authorities and determined that they
have been trying to evade taxes - amount could reach Skr600
million.
According to
radio Sweden, an audit carried out by the Swedish Tax Board show that
various companies in this category have been trying to evade the
payment of taxes. The municipal authorities concerned have rejected the
accusation according to radio Sweden.
Among the
municipal-owned company audited by the Swedish Tax authorities, to seek
how they make use of interest deductions, it was discovered that some
25 companies over the last two tax years used the so-called
interest-tops.
In these cases,
the Tax authority consider that these internal interest turbines are
used to substantially bring down the tax payments and therefore this
exception does not apply, according to a tax accountant, Borje
Noring speaking to radio Sweden.
The interest
turbines are when companies take internal loans with interest rates so
that their profits will subsequently disappear. A not uncommon
occurrence in the private business corporations, but a legislative
change in 2009 opened the door for the public sector to indulge in and
this is why the Tax authority wanted to examine it.
“External loans
are the ones deductible and the legislature has said that they are.
Then you could not refuse to certify the deductions, which one is
entitled to,” says Swedish municipalities and county lawyer Lars
Bjornson to radio Sweden.
By Scancomark.se Team
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