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Sweden gets tough on millionaire tax dodgers

Sweden gets tough on millionaire tax dodgers

Published: 06 Oct 2012 16:16 GMT+02:00
Updated: 06 Oct 2012 16:16 GMT+02:00

Wealthy Swedes stashing away fortunes in tax havens are increasingly being caught thanks to information exchange agreements between Sweden and countries like Switzerland and Luxembourg.

As a result, more and more wealthy Swedish tax dodgers are now coming forward to pay up their tax debts.

In 2011 the net inflow of private capital to Sweden grew five-fold, from two to 10 billion kronor ($300 million - $1.5 billion), according to figures from the Swedish Tax Agency (Skatteverket).

Over six billion kronor have come in from Switzerland and Luxembourg alone.

"In 2011 there was a heavy net inflow of capital for individuals, and that net inflow comes specifically from the countries with which we have established information exchange agreements", Margaretha Nyström of the Swedish Tax Agency told the Dagens Nyheter (DN) newspaper.

In October 2010, the Swedish government signed a deal with Luxembourg giving Swedish authorities the right to demand that banks in Luxembourg hand over information about their customers' assets.

Such deals are part of the reason behind the large inflow of capital into Sweden. Another explanation is that Swedes with money hidden abroad are now allowed to move that money home to without receiving tax penalties.

The individual concerned must then register a correction and pay taxes for the past five years.

"There are corrections where the capital for a single individual has reached up to 100 million kronor," said Margaretha Nyström.

"One should be aware that these people have paid tax on the capital in the country where it has been kept. They have the right to claim deductions in the foreign state. Sometimes it concerns inherited money that was placed abroad as far back as the Second World War, and that has now been brought home."

Nyström added that tax dodgers are aware that the authorities in Sweden are now able to get more information about their assets.

The Swedish Tax Agency's investigations generate an average of 500 million kronor a year in taxes and surcharges.

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Your comments about this article

22:34 October 6, 2012 by FluffiRabi
Oh Lordy! Where ever shall I hide it all now?
02:10 October 7, 2012 by Eric1
Come on, everyone in Sweden including all Social Democrats use the black market to avoid paying taxes. They hire people who do house work, auto, etc. because of the high cost of doing it "legally". The government acts as if it's the mob and takes a cut out of everything someone does.

Any government that takes more than 10% of someone's income is morally corrupt and greedy. This would put most governments in this category.
05:29 October 7, 2012 by Sven-Ingvar
Tax evasion is the growth industry of Europe!

Has been for eons

Best place in Europe to not pay taxes is Greece, followed by Spain, Portugal, Italy just follow the respective debt levels.

The Germans are simply good at collecting fair tax the "PIIGS" are not.

The reason why the German tax payers get to pay the Euro debt is because of it.
10:42 October 7, 2012 by viennacalling
All the tax evaders and or avoiders should have their names published

They Do Not Help the world economy and what they are doing costs the General Public, the Poor Taxpayers, Billions in Revenue !

When are these so Called Wealthy going to grow up , Wake Up and Pay Taxes like the Poorer People

I have done the study. In all western societies people who earn up to $50,000 dollars or, the equavilant of, pay the most Taxes in the World Economy, from their disposable dollar.

Congratulations Poor Taxpayers of the World and remember Blessed are the Meek for the Meek shall inherit the Earth !
17:26 October 12, 2012 by MichaelZWilliamson
viennacalling: So, it's greedy for them to want to keep their money, but not greedy for you to demand a cut. Got it.

Not giving you something you haven't earned "costs" society. Got it.

"Pay taxes like poorer people." Who don't pay taxes?

FYI, Americans earning $50,000 with two adults and two kids don't pay income taxes, if they have any competence at all or hire a tax preparer.
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