Political
Economy
The
Market Quotes Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.
Swedish tax law under intense pressure as the government must defend robustly its double punishment rule or …
Monday, 05 March 2012
Sweden is a
very sensitive country when it comes to taxation. This is because
despite the gradual fall of its welfare provision the country continues
to be one of the most radical taxing countries in the EU.
Even is a tax
criminal is being fined, it is customary for Sweden to provide a double
penalty for the so called tax criminal. This is explained in that in
Sweden, tax penalties may also be fined for the same unrelated issues.
Now the cries of the people who have been victims seem to have been
heard as voices coming from the European Court now requires that Sweden
provides an explanation for the reason of the double penalty.
"For the
individuals who suffer, it is a tremendously important issue. This is
of great interest to many people who have been sentenced to penalties
relating to taxation and other criminal penalty, "says Börje
Leidhammar, attorney and counsel in three of the tax-related targets
that are now being dealt with by the ECHR.
The issue concerns an article of the Convention which says that no person shall be punished twice for violating the tax laws.
In Sweden, it
is possible that a person first obtains a tax surcharge from the Tax
authority and subsequently be prosecuted and convicted with more fines
or imprisonment for the offenses relating to the original tax crime.
The European Court has seen the case and wants to understand why the Swedish government makes its tax system works as it does.
Borje Leidhammar, who also is professor of Tax Law at the University of Gävle, believes that Sweden will be forced to give way.
"It's very
large sums involved. By extension, changes in Swedish regulations mean
that many people would want a new trial. Individuals who believe they
have been violated may demand a reclaim," he says.
The Swedish
government is expected to respond no later than June 13. Then those
individuals who appealed will receive their response from the
government six weeks later. Over the next few months there is also
expected to be several other studies notice on the issue.
"Right now the State is really under the microscope. This is a first step towards a change, "says Börje Leidhammar.
Both Norway and Finland had earlier rules similar rules to Sweden. However, they have removed the double punishment.
By Scancomark.se Team
What do you think about this article
and us? Please leave a comment
© Scandinavian Companies and Market
Magazine
2012. | Scandinavian
Companies and Market and Scancomark are registered trade mark of
Scandinavian Companies and Market.