On 28 February 2022, the Swedish Administrative Court announced its ruling and have supported Pandox AB claim in the company’s dispute with the Swedish Tax Agency.
Pandox is a chain company owning around 157 hotel properties in 15 Northern European countries. As per the company’s transfer pricing practices, its profits are allocated to the countries in which the profits are generated.
In 2019, the Tax Authority concluded that the company’s profits had to be allocated to its country of incorporation (Sweden) rather than to the countries in which the subsidiaries are conducting their business. Since the decision was in contradiction with the company’s practices, Pandox AB appealed.
The Administrative Court shares Pandox’s opinion that the Group has managed its transfer pricing correctly. The Swedish Tax Authority announced, during the oral hearing in the Administrative Court, that they supported Pandox’s claim regarding the elimination of tax surcharges of approximately MSEK 53, an amount which was eliminated in full. Pandox has not made any tax provisions related to the case.
