The Swedish Minister of Finance, Pär Nuder, has expressed his view on the recent judgment from ECJ in case Marks & Spencer. Pär Nuder is of the opinion that the outcome of the case does not have any major effects on the Swedish rules on group contributions.

Although the Swedish system for group relief is, according to many scholars and tax consultants, very similar to the British rules challenged by the ECJ, the Swedish Minister of Finance is of the opinion that the findings made in the judgment cannot be directly applied to the Swedish conditions. Contrary to the British rules on deduction of losses, the Swedish system comprises contributions within the group, whereby the companies may chose which of them will be taxed for the contribution. Pär Nuder concludes however that the Swedish tax legislation may need to be changed to the extend it is possible to make tax deductions for losses in foreign subsidiaries against profits in the parent company, such changes would be in line with the statements made in Marks & Spencer case. The need for changes will be examined and a possible new proposal will be presented during the next year. Read the Swedish press release.

This entry was posted on Friday, December 23rd, 2005 at 11:35 am and is filed under Sweden. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.