Bure Equity wins status battle

A recent ruling by the Swedish courts that Bure Equity, a listed private equity firm, is technically an investment company and not a trading company, has provided some relief for many European private equity firms, since in many European countries a trading company is subject to higher rates of tax than an investment company. The problem has been that Bure Equity, like many private equity firms, retains a holding in its investments even after the company has come to the public markets. As a result, it has a listed portfolio. The Swedish tax authorities claimed that the quantity of the portfolio’s dealing in 1998 and 1999 meant that Bure should have been taxed as a trading company. This argument was rejected by the courts. The outcome of this case will help to clarify the position of many other firms across Europe.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• GPs
• Nordics