• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 10/16/2013

Sweden - Due process required in tax audits 

October 16:  The Administrative Court in Stockholm held that the Swedish tax agency had a duty to communicate documents to the taxpayer in a case relating to the taxation of carried interest, but that the tax agency not followed these procedures and that this lack of due process effectively denied the taxpayer an opportunity to review the records prior to assessment.


On audit of the taxpayer (a Swedish LLC), the Swedish tax agency in December 2011 made an assessment concerning carried interest income, and determined increased business income for the taxpayer.

The taxpayer filed for judicial review by the Administrative Court, asserting 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 countered that it had communicated all required information to the taxpayer prior to making the tax assessment.

Court’s decision

The Administrative Court found 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 discern from the audit report, as sent to the taxpayer, from which documents the tax agency had extracted crucial information.

The Administrative Court thus concluded that due process was lacking, and therefore returned the case to the tax agency for appropriate action.

Read an October 2013 report prepared by the KPMG member firm in Sweden: Swedish Tax Agency’s duty to communicate documents in a carried interest case

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