The Court of Appeal has tried a question of the right to deduct for a holding company regarding input tax on costs in connection with an IPO and new share issue. The holding company was the parent company in a group consisting of approximately 75 companies. Closest to the holding company was only one subsidiary and no services for remuneration had been provided to this subsidiary. However, the Court of Appeal considered that the company had provided services to all operating companies in the group even if it had only received payment from one of the companies (a granddaughter subsidiary) and that this meant that the company had active management towards these companies. The company was therefore entitled to a deduction for the input tax as for a general overhead in the business.
The Swedish Tax Agency does not share the Court of Appeal’s assessment and interpretation of the case law of the European Court of Justice.
Source: skatteverket.se
