- Exemption Denied for Services: The Swedish Tax Agency determined that accounting, payroll, HR, and IT services provided within independent groups do not qualify for the exemption from tax liability, as they are considered too general and not specifically tailored to the group’s public benefit activities.
- Legal Background: Law stipulates that services must be directly necessary for the exempt activities of public interest to qualify for a tax exemption, and the current services were deemed not to meet this requirement.
- Tax Court’s Assessment: The Tax Court agreed with the Tax Agency’s ruling, stating that the services offered are customary and lack a specific connection to the public interest activities of the group, thus failing to qualify for the exemption.
- Risk of Competition Distortion: The Tax Court expressed concerns that granting a tax exemption for these services could lead to a real risk of distortion of competition, as these services are also in demand by other businesses outside the group.
- Dissenting Opinion: Some members of the Tax Court argued for a broader interpretation of the exemption, highlighting competitive disadvantages for Swedish entities compared to other EU Member States with more lenient applications of the exemption for services provided within independent groups.
Source skatterattsnamnden.se
