Hair salons and restaurants face tax call

Some 26,000 hair salons and restaurants, nearly 80 percent of those businesses operating in the country, will get a visit from Skatteverket next year in a massive sweep aimed at ridding the industries of cash-in-hand labourers, Sweden's tax authority said on Monday in a press release.

The government has given Skatteverket the authorisation to make unannounced inspections starting in 2007.

Businesses could face steep fines if the tax agency finds undocumented workers. A 10,000 kronor inspection fee will be levied as well as a fine of 2,000 kronor for each undocumented worker.

Companies will be forced to pay 20,000 kronor for repeat offences.