News

Administrative Court Judgment – Shareholders of private equity funds are taxed according to capital income

December 10, 2018

On 20 November 2018, the Stockholm Administrative Court decided that dividends to eleven persons who indirectly owned units in the private equity firms Valedo Fund I AB and Valedo Fund II AB, shall only be taxed in the capital income tax category.

The reason is that the so called third party rule is applicable. 

Vinge acted for the companies in the civil proceedings where the court decided that neither Valedo I nor Valedo II has a structure which is typical for a private equity firm. The so called third party rule is thus applicable. The rule entails that passive and active shareholders are taxed according to the tax rate for capital income provided that the passive owners have a profit share of at least 30%. 

An international and traditional structure for private equity firms makes the shareholding qualified, which means that dividends are taxed in both the income category of services and the income category relating to capital. For the operations which are focused within the Nordic region, it is more beneficial to combine the operations in a company with a Swedish limited liability company structure. 

The Administrative Court considers that the dividend structure in Valedo I and Valedo II has not counteracted the purpose of the rules governing dividends in respect of qualified holdings. Accordingly, no special grounds exist and the third party rule shall thus apply.

Read more here

Guidance judgment on the criminal liability for ordering a cabotage transport

The ordering of a road transport made by one of the largest freight forwarders in Sweden has been considered in accordance with the conditions for legal cabotage transports through a decision from the Court of Appeal over Skåne and Blekinge. The Court of Appeal, thus, changes the District Court’s judgment and acquits the freight forwarder. The central issue in the case was how the number of cabotage transports should be calculated.
May 07, 2021

The Scope of Work According to AB 04

One of the most important parts of a construction agreement is the part where the scope of work is defined. There is a major difference between finding scope of work issues early in a construction project, instead of later during the execution phase.
May 04, 2021

A shift in EU merger control policy and practice could affect deal certainty and create opportunities for complainants

The European Commission is expanding its control of mergers and acquisitions within the existing legal framework, allowing national authorities to refer a transaction they do not have jurisdiction over for review in Brussels.
April 26, 2021