In a recent ruling, the Administrative Court in Stockholm held that it was the duty of Swedish tax agency to communicate documents to the taxpayer in a case relating to the taxation of carried interest. The due procedures had not been followed by the tax agency and this lack of due process effectively denied the taxpayer an opportunity to review the records prior to assessment.
The Swedish tax agency made an assessment concerning carried interest income, and determined increased business income for the taxpayer on an audit of the taxpayer (a Swedish LLC), in December 2011. A judicial review of the taxpayer filed for by the Administrative Court, declaring that the Swedish tax agency had failed to communicate certain information about documents relevant to the taxpayer’s case before making the assessment. The Swedish tax agency had countered that all required information to the taxpayer prior to making the tax assessment was duly communicated.
It was found by the Administrative Court that the Swedish tax agency had failed to comply with the requirement to share information with the taxpayer, finding that it was not possible to separate from the audit report that was sent to the taxpayer and from which the tax agency had extracted essential information.
