Nordic Capital wins tax case

It was announced in early November that eight of the large Swedish private equity firms were facing a tax investigation regarding the taxation of carried interest. The tax agency claimed that these profits should have been taxed as income rather than capital gains.

The decision means that the carried interest earned by key executives at Nordic Capital will be treated as realised investments rather than compensation for work performed. This rejection means that the investigation into the other firms will most likely be dropped. The tax agency may yet appeal the decision, though.

Although the initial claim was rejected, the tax board has decided that any share of profits received by employees at Nordic Capital through loan agreements should be taxed as income.

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• Topics
• Nordics
• Financials
• Regulation
• Nordic Capital
• tax