An analysis by Skeppsbron Skatt
The Swedish Supreme Administrative Court has recently ruled that denying tax deductions for interest incurred during intra-group share acquisitions within the EU violates the freedom of establishment principle within EU law.
While acknowledging the acquisition in question wasn’t purely commercial, the court focused on the rule’s unfair disadvantage for cross-border deals, paving the way for potential adjustments to Swedish tax regulations to align with EU law. This decision comes amid broader concerns about the compatibility of Sweden’s interest deduction limitation rules with EU law, with a government inquiry expected to propose changes in May 2024.
Malin Asplund from Skeppsbron Skatt analyses this recent ruling and its wider implications here.
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