Swedish tax authorities target HK, Panama, Dubai, Qatar for TIEAs

Success in generating an estimated additional SEK1.1bn in taxes since 2010 has persuaded Swedish tax authorities to target Hong Kong, Panama, Dubai and Qatar for tax information and exchange agreements, as the country continues to close off existing loopholes involving so-called tax havens.

The Swedish Tax Agency (Skatteverket) is hoping to sign agreements with the four jurisdictions by the new year, report both Swedish wire service Ekot and business daily Dagens Industri.

Sweden has some 40 TIEAs in place with other jurisdictions already, as part of the government’s hunt for undeclared assets. The agreements mean that the country’s Tax Agency gains access to information about, for example, bank accounts, which can help determine whether there is evidence of tax avoidance.

Recent figures published by the Tax Agency suggest that the net inflow of capital belonging to individuals in Sweden increased five-fold last year, from SEK2 to SEK10bn. The figures are based on reporting from banks, which must report all transactions worth more than SEK150,000.

The increase has been particularly large from Switzerland and Luxembourg, which together account for SEK6bn of the Sek10bn figure. It is two years since the government signed a TIEA with Luxembourg. The Tax Agency also believes the increase is because those who move their money home can do so without being hit by an additional penalty tax, as long as they make up the unpaid tax within five years.


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