Nordic Capital scores definitive win in tax case

The rejection of the appeal case means the ruling made by Swedish middle administrative court Kammarrätten in favour of Nordic Capital in the matter of whether carried interest accrued by the GP should be taxed as the capital gains rate of 25% or the income rate of 55%, will stand.

The decision may have significant implications for other ongoing tax cases against individuals in Swedish private equity firms, where claims for back taxes and fines for the more than 70 people involved in total nearly SEK 5.3bn.

Joakim Karlsson, managing partner at NC Advisory (adviser to the Nordic Capital funds) said: "The ruling by the Administrative Court of Appeal is clear, and we are pleased that we are now able to conclude these legal proceedings."

Fellow managing partner Kristoffer Melinder underlined the importance of the victory for Swedish private equity: "It is positive for Sweden that we now have a legal ruling in place that encourages private equity funds, their advisers as well as international investors to invest in Sweden. Sweden as a country has thereby demonstrated awareness of the private equity industry's value for building a stronger, more enterprising Sweden."

In September, NC Advisory COO Klas Tikkanen told unquote" he believed Skatteverket did not have a case against the firm.

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• Topics
• Nordics
• GPs
• Regulation
• LPs
• Sweden
• Nordic Capital
• Swedish tax case