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Swedish Tax authority will increase its scrutiny of venture capitalists organisation to kill tax evasion

Monday, 26 December 2011
Swedish Tax authority will as from next year, increase its toughness on venture capital companies, especially in their tax planning policy as it is suspected that there is a lot of money to be gained from suspected capital being ferried to tax havens.
“We believe that these are very big money,” said Jan-Erik Bäckman, chief analyst at the Tax Agency.
20 employees in the Swedish Tax authority will next year start taking stock of venture capital companies in relation tax planning.
“I think we will find some of the tax structure in the welfare sector that is not okay and where we will need to change and raise taxes,” says Jan-Erik Bäckman who believe that there are a lot of money hidden away.

“We believe that these are very big money, billions rather than millions,” says Jan-Erik Bäckman.

According to reports, the most common presentation in the tax related complication are the  parts that when venture capitalists receive dividends from companies, then there is tax only on income from capital. When in reality it is about income to service and also that real profits disappear from Sweden by unjustifiably high interest rates, blamed of that paid to capital usually borrowed from foreign sources.

A common arrangement is that which a groups are acquiring several small companies and putting them in a group. Since companies are borrowing money from each other at high interest rates to be able to deduct the profit. After these so-called interest-tops, there is almost no profit left in Sweden. The money has been put to various tax havens around the world, such as the Channel Islands.

The core idea is to evade taxes through foreign transactions by the foreign holding company, according to Jan-Erik Bäckman, who is convinced that private equity firms are using complex arrangements so that kit becomes more difficult to examine.

The reviews of the tax re-examination has to do with cries and calls for the government to do something as venture capitalist sap money from welfare services which the government has decided to privatise. Services such as schools and healthcare are owned by continuously by venture capitalists that have strongly compromised services in order to recoup their investments and also to start making profits as soon as possible. This includes a complicated and advanced method of tax planning and management which makes it possible that taxes are not paid in Sweden.
By Scancomark.se Team

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