SHARE
COPY LINK

TAX

Sweden gets tough on millionaire tax dodgers

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.

Sweden gets tough on millionaire tax dodgers

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.

The Local/nr

Follow The Local on Twitter

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

BOMB

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.

READ ALSO:

SHOW COMMENTS