EQT to appeal tax decision

Karin Wasteson
20 August 2013

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As expected, EQT Partners will appeal the Swedish tax authority's decision to tax carried interest as income, presenting some of the firm's staff with a SEK 670m tax bill.

The decision, which states that carried interest should be taxed as income rather than capital gains, concerns around 20 current and former EQT employees. It follows two years of investigation, covering the years 2007-2009.

EQT Holdings COO Johan Bygge stated that EQT Partners and the individuals will appeal the decision.

"The parties concerned have followed all rules and regulations in Sweden, fully declared income and provided all relevant information to the tax authorities. Our view is that nothing new has been found in the investigations that warrants a retroactive change," Bygge said in a statement.

The firm is confident its views will prevail. "We are pretty sure we won't lose. The decision is so obviously wrong and we have difficulties to see how the tax authorities will get legal support for the case," the statement added.

Click here to read unquote's analysis on the current debate surrounding carried interest taxation in Europe