The Local is not responsible for content posted by users.
This discussion forum closed permanently on 25th February 2021.
  Reply to this topic

Unpaid taxes as a sole trader

with employees

*Guest*
post 16.Jun.2016, 10:30 PM
Post #1


I am a sole trader and have 3 employees and all seemed to run god for me until recently and now I find mysel in dificulties to pay my montly taxes, income tax, social contributions and arbetsgivare avgift.
I must pay around 30000 this month and maybe just as much the next one and Skatteverket sent me a notification threatening me with kronofogden.
Considering that I hope in near future to come back on my feet again and I chose not to pay the taxes right now what is the worst case scenario for me beside geting a debt registered to Kronofogden? Skatteverket gonna cancel my F-Skatt or I'm gonna be prosecuted for not paying the taxes for my employees?
Go to the top of the page
+
Case officer
post 17.Jun.2016, 06:28 AM
Post #2
Joined: 25.Jul.2012

Yes, they can cancel your F-skatt, prosecute you and file for bankruptcy.
Go to the top of the page
+
yet another brit
post 17.Jun.2016, 07:55 AM
Post #3
Joined: 5.Jan.2013

You could grovel with Skatteverket and see if they will agree to a deferred payment plan. You lose nothing by asking, and it is better than having Kronofogden over you. Which could get personal as a sole trader.

And when you're back on your feet, maybe consider setting up an AB instead. That way Skatteverket would have to prove criminal negligence on the part of the directors before they can go after you personally.
Go to the top of the page
+
skogsbo
post 17.Jun.2016, 09:44 AM
Post #4
Joined: 20.Sep.2011

Speak to SV, then email the person a sound plan with all the details, miss nothing out and project a positive outlook of future income. If they feel reassured you can weather the storm and catch up over the next 6months/ this FY then I expect you'll be ok. Unless you've been behind for many months/years already.
Go to the top of the page
+
LLHope
post 17.Jun.2016, 09:25 PM
Post #5
Location: Stockholm
Joined: 1.Jan.2014

QUOTE (yet another brit @ 17.Jun.2016, 06:55 AM) *
You could grovel with Skatteverket and see if they will agree to a deferred payment plan.
You must read this here about applying for deferral of tax payments:

http://www.skatteverket.se/foretagorganisa...8800010913.html

As you will find they require a very good reason to allow it, you must provide evidence that the situation is temporary and rectified within 3 months (actually they normally only allow 2 months). It is always best to apply in advance of any default in payment. I suspect in your case, since it sounds like you have already defaulted, they will say no.

As self-employed, if you expected income lower than what was forecasted (or calculated by Skatteverket) then you should also apply for j?mkning detailing a lower than expected income for the year. The typical old method from Skatteverket for self-employed was to take last years income declaration and add 10% to use as a basis for the following years advance tax demands (yeah, they expect you grow by 10% per year!) biggrin.gif

QUOTE (yet another brit @ 17.Jun.2016, 06:55 AM) *
And when you're back on your feet, maybe consider setting up an AB instead. That way Skatteverket would have to prove criminal negligence on the part of the directors befo ... (show full quote)
Incorrect. In all company forms there is someone that is always considered responsible for payment of taxes and can be made personally liable when they default. In an AB it is the Board. If the company get into a situation where liabilities are greater than assets the company must do a control balance sheet and the board notified. If the control balance sheet is not done, then the board has failed it's duty and becomes personally liable. If the control balance sheet is done and the company board decides to continue trading then it becomes personally liable for tax payments. This is why in Sweden it is more common that taxes are paid-up-to-date that employees and/or suppliers ...one way or another the tax office can relatively easily have it that someone is personally liable.
Go to the top of the page
+
yet another brit
post 18.Jun.2016, 12:52 PM
Post #6
Joined: 5.Jan.2013

QUOTE (LLHope @ 17.Jun.2016, 08:25 PM) *
Incorrect. In all company forms there is someone that is always considered responsible for payment of taxes and can be made personally liable when they default. In an AB it is ... (show full quote)


Thanks for the clarification. I guess I was thinking of the circumstance where an AB ceases trading (after control etc,with correct board decision) and becomes insolvent with unpaid tax debt.
Go to the top of the page
+
Hisingen
post 18.Jun.2016, 02:54 PM
Post #7
Joined: 5.Jul.2012

Anyone getting themself on the wrong side of Kronofogden/Skatteverket is simply digging his/her own grave, with respect to any chance of furthering themself. Such a debt is virtual suicide. The stigma is on record for all to see, and the possibility of obtaining any credit thereafter is virtually nil.
Go to the top of the page
+
LLHope
post 19.Jun.2016, 04:29 PM
Post #8
Location: Stockholm
Joined: 1.Jan.2014

QUOTE (yet another brit @ 18.Jun.2016, 11:52 AM) *
Thanks for the clarification. I guess I was thinking of the circumstance where an AB ceases trading (after control etc,with correct board decision) and becomes insolvent with unpaid tax debt.
You were close earlier, but not quite. There is 1 instance where you do not become personally liable but there could be pending tax debts.

It doesn't matter with regards which type you are, AB etc., since each type has a person(s) responsible for ensuring taxes are paid. It is more the timing and/if what one becomes personally liable to pay. The law states that the person(s) become responsible personally for the debt if the taxes were not paid either because of gross negligence and/or Intentionally not paid. Whilst it sounds hard to prove on behalf of the tax office, in essence it isn't. If you don't pay by the due date, then you intentionally didn't, unless of-course there was a bank-error or other kind of failure.

But, you can only be made personally liable for taxes if they are not paid by the due date. So, for sake of example, if taxes are due to be paid on 30th June, you are not personally liable for them if they are not paid until 1st July (after the due date). So, if you have tax payment due on 30th June and foresee you cannot pay it, you can avoid personal liability by either requesting in advance deferral, or before end of 30th applying for liquidation, bankruptcy or reconstruction. If you start one of the last 3 applications then the taxes due on the 30th may go into the calculation of debt but will not become personal liability because it was not past due when you started the process. This is one of the ways the system is abused biggrin.gif There are more with regards Moms!!! but that is another story wink.gif

This is why deferral is not normally allowed for too long (2 to 3 months) and in many cases they will still look to issue the request for payment and send it direct to Kronofogden just to make sure you cannot get out of personal liability easily.
Go to the top of the page
+
yet another brit
post 19.Jun.2016, 07:58 PM
Post #9
Joined: 5.Jan.2013

If I ever get in trouble with Skatteverket, I know who I will call :-)
Go to the top of the page
+

Reply to this topic
1 User(s) are reading this topic (1 Guests and 0 Anonymous Users)
0 Members: