Unique decision: Tax Board rejects Tax Agency’s claim
The Tax Agency announced today its tax ruling regarding NC Advisory AB in respect of profit sharing for the years 2006 and 2007.
In an exceptional move, the Tax Board – a decision-making body within the Tax Agency - refused to approve the Tax Agency’s proposed decision. Rather, on the basic issue the Tax Board held that, for key executives, carried interest is a result of realised investments rather than compensation for work performed.
The Tax Agency therefore failed to prevail with its argument in the Tax Board. The question is now whether or not certain participating loans will be taxed as securities. This issue has previously been tried several times with respect to several industries, and NC Advisory believes there are solid grounds for an appeal.
The Tax Agency ruled on reduced tax surcharges, though the decisions were split; two of the five members of the Tax Board dissented and held that the tax surcharges should be removed completely.
“The Tax Agency should dismiss this case. Any continuation of the case will serve to damage the Tax Agency’s reputation and the Swedish investment climate”, says NC Advisory AB’s legal representative, attorney Sven-Åke Bergkvist.
Attorney Sven-Åke Bergkvist, representative for NC Advisory AB
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