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Swedish private equity scores major tax case win in court-Reuters

(Reuters) – A Swedish court on Thursday ruled in favor of a top buyout house in a widely watched tax case, a major victory for Sweden’s private equity industry which has been slammed with more than 4 billion crowns ($612 million) in back taxes.

The Administrative Court of Appeal in Stockholm said carried interest received by partners in private equity firm Nordic Capital was not to be seen as salary paid from Nordic Capital’s Swedish advisory firm, which Sweden’s tax agency had argued.

This means the advisory firm, NC Advisory AB, which was facing claims of more than 500 millon crowns in back taxes and fees from the agency, cannot be taxed for the carried interest.