Sweden chases €48 mln in lost taxes in Cyprus

Sweden’s tax office is chasing some 400 cases of tax evasion by entrepreneurs who have been transferring their funds to Cyprus, with the loss for Sweden estimated at 48 mln euros. Such activity was banned by the Swedish authorities by a new law in November, according to reports published by Skatteverket.
It seems that the Swedish-owned holding companies in Cyprus were dormant firms that merely functioned as the facilitator for the tax evasion and the Swedish tax authorities have reportedly informed the Cypriot government about the issue.
“We have looked at some 50-70 cases of the total 400. But it is not clear yet exactly how many individuals or corporations were evading taxes by sending their funds to Cyprus because some of the 400 cases could involve the same people,” the Skatteverket report said.