Tax authority demands Nordic Capital execs repay SEK 412m

unquote" has previously reported on a dispute between Nordic Capital and the Swedish tax authority, where the latter has argued for carried interest to be taxed as higher-tier standard income at 55%. An earlier decision to reclassify carried interest between 2006 and 2007 as income was appealed and the authority's claims were rejected by the country's tax board.

Sweden's tax authority has now decided to proceed with its reclassification attempt, requesting 16 current and former Nordic Capital executives to repay a total of SEK 313m in tax and a penalty fee of SEK 99m, according to local press. To reach this decision, the tax authority reportedly added a total of SEK 1.02bn to the executives' income statements, whilst decreasing declared capital gains by SEK 872m.

The news comes shortly after the Norwegian tax authority joined the hunt for carried interest. IK Investment Partners has previously been subject to similar claims.

Owing to the uncertainty of the carried interest situation in Sweden, it is believed the decision will be appealed.

Nordic Capital was unavailable for comment.

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• Nordic Capital
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• IK Investment Partners