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Sweden snags top spot in European tax ranking

Sweden has once again topped the European tax league, boasting a 56.6 marginal tax rate, according to a new report.

Sweden snags top spot in European tax ranking

For the third year running, Sweden has the highest marginal tax rate among OECD countries included in an annual survey carried out by tax consultancy KPMG, the Dagens Nyheter (DN) newspaper reports.

Number two on the list is Denmark with a marginal tax rate of 55.38 percent, followed by Spain with 52 percent.

According to the KPMG report, the Czech Republic has Europe’s lowest marginal tax rate, a mere 15 percent, while Hungary is a close second lowest with 16 percent.

In the report, a marginal tax rate is defined as the tax high-earners pay on their last unit of income. In Sweden’s case, that means high-earners pay 56.6 percent in tax on their last earned krona.

The KPMG report compares tax rates in 114 countries, including the 33 industrialized countries of the OCED.

The consultancy has found that the global financial crisis has had an impact on tax rates in a number of countries.

“During the last year, more countries have raised their marginal tax rates than have cut them, and the financial crisis is almost always given as an answer,” Helena Robertsson, head of KPMG’s tax business in Sweden, told DN.

However, Sweden may soon lose its grip on the top spot in the ranking if French President Francois Hollande succeeds in implementing a marginal tax rate of 75 percent on those who earn more than 1 million euros.

The study also looks at what happens when social fees such as mandatory pension fees are added into income tax calculations for people earning $100,000. The adjustment moves Sweden down to 20th place with 36.3 percent.

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Denmark suspects two Swedes over explosion at tax authority

Two Swedish citizens are suspected in connection with last week’s explosion at the Danish Tax Agency. One of the two is in police custody.

Denmark suspects two Swedes over explosion at tax authority
Copenhagen Police superintendent Jørgen Bergen Skov addresses the press. Photo: Philip Davali / Ritzau Scanpix

Copenhagen Police superintendent Jørgen Bergen Skov confirmed the arrests to press on Wednesday morning.

“Both individuals are suspected of carrying out the detonation at the Tax Agency,” Skov said.

One man, aged 22, was arrested in Swedish city Malmö on Tuesday and will be extradited to Denmark. Once he reaches Copenhagen he will appear for preliminary court proceedings, which the prosecution will request take place behind closed doors.

Swedish newspaper Kvällsposten reports the 22-year-old has no previous criminal convictions in the country.

The second man, a 23-year-old, is yet to be detained but an international arrest warrant for him has been issued, Skov said.

“During the night, we also searched several addresses in Sweden. We hereby confiscated what we believe to be a car used by the suspects,” he said.

“We have one suspect on the loose, which means we must be careful about what we say, out of consideration for the investigation,” he added.

The superintendent did not add any detail about how police were able to connect the two individuals to the August 6th explosion.

Skov also stressed that police do not believe the tax authority blast to be connected to a similar incident at a police station in Copenhagen’s Nørrebro neighbourhood in the early hours of Saturday.

“There is nothing to suggest (a connection),” he said.

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