The tax market is showing more life in Sweden than in other countries around Europe."High demand in all areas. The transactional tax department you would think would be quiet, but it was not a slow market," commented one corporate tax partner, who added: ...
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The tax market is showing more life in Sweden than in other countries around Europe.
"High demand in all areas. The transactional tax department you would think would be quiet, but it was not a slow market," commented one corporate tax partner, who added: "Private equity across the board is busy."
Some remnants of the downturn remain, in the form of refinancing and restructuring work. The tax authorities have also maintained a tougher compliance approach, like many in Europe, as they strive to increase revenues.
"Tax authorities are more aggressive. They review structures very closely now," said an adviser. Others reach into the Middle Ages for a comparison: "I suppose the authorities are, like a lot of places, chasing their tax base, looking for more. It's like witches being chased in the 16th century."
"The Swedish authorities are still aggressive and becoming sophisticated. Same as everywhere," summed up another partner. This renewed vigour on the part of the authorities does have the effect of making the courts busier: "Litigation comes out of the authorities being more diligent, more active. There is more tax litigation," stated one litigation partner.
As regards the law, the resurgent private-equity industry is one being targeted, as one adviser explained: "There has been a lot of discussion regarding private equity. How it is taxed and interest deductions are the big issues. It is perceived that the sector has taken advantage and has had too favourable a time so new rules will come in next year limiting that."
As with a lot of tax issues, this has become heavily politicised, something that practitioners noted: "It [the PE changes] is political. We were one of the very few nations without restrictions, but we'll now join the rest of the world."
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