Sweden To Close $936M Tax Loophole Milked By PE Firms

Law360, New York (March 22, 2012, 4:41 PM EDT) -- The Swedish government plans to close a legislative loophole allowing private equity firms to evade taxes to the tune of 6.3 billion Swedish kronor ($936 million), a practice scandalizing the country's tax-subsidized health and education sectors, it said Thursday.

Proposed by members of the Ministry of Finance, the legislation is expected to take effect at the beginning of 2013 and will button up a 2009 rule that introduced a circumventive practice in which firms were allowed to borrow cash from subsidiaries in low-tax or no-tax countries...
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