Tax board queries June List leader's property deal
The leader of the June List, Nils Lundgren, has earned almost two million kronor through buying and selling his house five times, Dagens Nyheter has reported.
When the value of the house was high, Lundgren sold it to his own company, Veraciter, from which he then repurchased it when the value fell.
The company also paid for renovations to the house, which meant that the cost of repairs were tax deductible and reduced the company's overall tax bill.
Lundgren's company also made a deduction for the loss when he bought back the house, thereby reducing the company's tax further.
In two of the sales, Lundgren was able to take out almost two million kronor from the company instead of salary.
But the property dealings have led to a dispute with the Swedish Tax Board. The board is arguing that the rent paid by Lundgren when the house was owned by his company was too low.
But Lundgren told Dagens Nyheter that he had just acted "like everyone else" and that he had first sold the house on his accountant's advice, since there appeared to be advantages considering the rental costs.
He added that the matter showed that the rules were unclear.
The June List won 14.5 percent of the vote in the 2004 elections to the European Parliament, becoming the third largest Swedish party at the European level.
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When the value of the house was high, Lundgren sold it to his own company, Veraciter, from which he then repurchased it when the value fell.
The company also paid for renovations to the house, which meant that the cost of repairs were tax deductible and reduced the company's overall tax bill.
Lundgren's company also made a deduction for the loss when he bought back the house, thereby reducing the company's tax further.
In two of the sales, Lundgren was able to take out almost two million kronor from the company instead of salary.
But the property dealings have led to a dispute with the Swedish Tax Board. The board is arguing that the rent paid by Lundgren when the house was owned by his company was too low.
But Lundgren told Dagens Nyheter that he had just acted "like everyone else" and that he had first sold the house on his accountant's advice, since there appeared to be advantages considering the rental costs.
He added that the matter showed that the rules were unclear.
The June List won 14.5 percent of the vote in the 2004 elections to the European Parliament, becoming the third largest Swedish party at the European level.
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