pic: onelegal.com
Sweden got a thumbs down from the European Securities and Markets Authority (ESMA) regarding its measures to counter tax evasion, SvD reports today (). Sweden has done nothing, they say, (zip zero nada) to make illegal the kind of money-moving that resulted in the “cum-ex files” international financial scandal last year.
Basically, the scheme involved asking tax authorities for tax refunds on taxes that were actually never paid. In Sweden, (and this is grossly simplifying), it mostly involved what was called a cum-cum deal (pronounced kume, presumably) in which investors “loaned out” their holdings to a frontman to avoid paying withholding tax.
It’s complicated. Plus, and this is obviously embarassing for Skatteverket and its fans, it wasn’t actually illegal in most cases – it was just sort of morally corrupt.
ESMA is urging Sweden to get a move on fixing this issue. Germany’s already done their part.