Swedish Government In Banking Stand-Off


By Global Tax Weekly

The trouble with governments is that they tend to have short memories. This is especially the case in your average democracy, where the lifespan of a government is usually no more than a few years. This can mean that sometimes they fail to learn from history. And one of the latest countries that looks like it could be about to repeat a fatal economic policy error is Sweden, which intends to increase the banking sector’s tax burden in the next Budget.

Now, I expect few people will have very much sympathy with the banks when they complain about being overtaxed, given that the industry has largely got away with a great deal. But governments do have to be mindful that punishing the banks can have unintended consequences. Sweden’s bankers are already warning that the proposal to abolish the interest deductibility of subordinated debt threatens to de-stabilize the country’s banking sector.


For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look





Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>



RELATED ARTICLES AND INFORMATION

Poland Ponders Corporate Tax Reform

Two bills currently before Poland’s parliament would bring about sweeping changes to the country’s corporate tax rules. Some of the proposed changes were consulted...

Australia Announces Budget Measures

The Australian Government announced in its Budget that it would be bringing forward personal tax cuts that had been scheduled for 2022.

The Australian authorities...

UK Clarifies VAT Rules

In the UK, while things are gearing up to get more complicated on pretty much all fronts, the tax authority sought to provide clarity...