On February 13, the Swedish Tax Agency announced the industries to come under special focus during 2018. The intention with these extra controls is to reduce the risk of error and fraud in taxation. Will you be affected by the Tax Agency’s special control activities?
Every year, the Tax Agency chooses a number of areas for special control. This year, the Tax Agency intends to execute these control activities as regards:
- Review of personnel registers in new industries. Today, the regulations include personnel registers in restaurants, hairdressers, laundries and construction. However, according to the government’s proposal, the requirement of maintaining personnel registers will also apply to vehicle maintenance and service, body and beauty care, as well as to foodstuff and tobacco wholesalers as of July 1, 2018. As a result, the Tax Agency plans to begin its control exercises regarding these new industries during the autumn of 2018 to check the compliance with the legislation and that illicit work does not occur. According to the Tax Agency, the new regulations provide the possibility of a more effective counteraction against organized illicit work and the utilization of the system.
- International control. In the light of a number of leaks of tax avoidance data, including the so-called Paradise leak, the Tax Agency will continue its audit of individuals and companies associated with international circumstances and arrangements. The current investigations are primarily focused on large companies’ international tax arrangements. The Tax Agency’s goal is to identify the deliberate and advanced tax fraud. These efforts are undertaken through increased cooperation with other authorities, as well as through cooperation with other countries to increase the exchange of information and further development of the methods employed.
- Digital economy and the Internet. The Tax Agency continues to control the digital economy to counteract unreported income. This control is primarily aimed at the trade with cryptocurrency, e-commence and gaming gains and other activities taking place in the less accessible parts of the Internet.
- National registration. The Tax Agency is increasing its control of national registration to counteract cheating with welfare payments and as regards other aspects of the social welfare system. According to the Tax Agency, this control will be strengthened at an earlier stage to avoid registration of incorrect data from the beginning. The control will also be aimed at residence, which is an important factor in terms of securing various benefits and rights. Further activities will be undertaken to improve the system aimed at identifying errors through, among other things, better cooperation with other authorities.
- Serious economic crime. This year, the Tax Agency is investing even more resources to counteract organized crime. This work is undertaken together with the control of illicit work and inaccurate national registration. The Tax Agency will continue its work against invoice fraud, false statements of earnings and tax deductions and the financing of other serious crimes.
The Tax Agency will continue to control the areas controlled last year. For both individuals and companies, the Tax Agency’s controls can be carried out by the Tax Agency to select a number of income tax returns regarding which they can ask further questions. Companies can also be controlled through so-called tax audits in which a more extensive review of the company’s bookkeeping and documentation is made.
The control activities will also be focused on new areas, such as the control of new industries which can incur the obligation to maintain personnel registers. The controls can be undertaken by the Tax Agency visiting the workplaces of the companies involved to determine if the personnel working there are registered in the personnel registers. The Tax Agency’s activities as regards national registration can also imply an increased control of passports, employment certificates and other documentation in connection to registration.
We can assist you in decreasing the risk of errors in your private income tax return or in your business operations. Feel free to contact us if you have questions regarding, for example, personnel registers, the new regulations regarding employer’s declaration at individual level or how to declare income from the digital world. If your company is subject to a tax audit – contact us as early as possible so we have a greater possibility to help you.