Global Forum on Transparency and Exchange of Information for Tax Purposes peer reviews : Sweden 2013 : combined: phase 1 + phase 2, incorporating phase 2 ratings.

107 Pages·2013·1.632 MB·English

by  OECD

Global Forum on Transparency and Exchange of Information GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE
for Tax Purposes
OF INFORMATION FOR TAX PURPOSES
PEER REVIEWS, COMBINED: PHASE 1 + PHASE 2,
incorporating Phase 2 ratings – SWEDEN
Peer Review Report
The Global Forum on Transparency and Exchange of Information for Tax Purposes is the
multilateral framework within which work in the area of tax transparency and exchange of
information is carried out by 120 jurisdictions, which participate in the Global Forum on an Combined: Phase 1 + Phase 2,
equal footing.
The Global Forum is charged with in-depth monitoring and peer review of the implementation incorporating Phase 2 ratings
of the international standards of transparency and exchange of information for tax purposes.
These standards are primarily refl ected in the 2002 OECD Model Agreement on Exchange
of Information on Tax Matters and its commentary, and in Article 26 of the OECD Model P
e
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The standards provide for international exchange on request of foreseeably relevant iew
information for the administration or enforcement of the domestic tax laws of a requesting Re
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party. Fishing expeditions are not authorised but all foreseeably relevant information must be o
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provided, including bank information and information held by fi duciaries, regardless of the t C
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existence of a domestic tax interest or the application of a dual criminality standard. m
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All members of the Global Forum, as well as jurisdictions identifi ed by the Global Forum ine
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as relevant to its work, are being reviewed. This process is undertaken in two phases. P
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Phase 1 reviews assess the quality of a jurisdiction’s legal and regulatory framework for a
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the exchange of information, while Phase 2 reviews look at the practical implementation of 1
that framework. Some Global Forum members are undergoing combined – Phase 1 and +
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Phase 2 – reviews. The Global Forum has also put in place a process for supplementary h
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reports to follow-up on recommendations, as well as for the ongoing monitoring of se
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jurisdictions following the conclusion of a review. The ultimate goal is to help jurisdictions , in
to effectively implement the international standards of transparency and exchange of c
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information for tax purposes. rp
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All review reports are published once approved by the Global Forum and they thus represent tin
agreed Global Forum reports. g
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For more information on the work of the Global Forum on Transparency and Exchange of a
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Information for Tax Purposes, and for copies of the published review reports, please refer to 2
www.oecd.org/tax/transparency and www.eoi-tax.org. ra
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Consult this publication on line at http://dx.doi.org/10.1787/9789264205949-en. S
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This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and E
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statistical databases. E
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Visit www.oecd-ilibrary.org for more information.
ISBN 978-92-64-20593-2
9HSTCQE*cafjdc+
23 2013 66 1 P

Global Forum
on Transparency
and Exchange
of Information for Tax
Purposes Peer Reviews:
Sweden 2013
COMBINED: PHASE 1 + PHASE 2,
INCORPORATING PHASE 2 RATINGS
November 2013
(reflecting the legal and regulatory framework
as at December 2012)
ThisworkispublishedontheresponsibilityoftheSecretary-GeneraloftheOECD.
Theopinionsexpressedandargumentsemployedhereindonotnecessarilyreflect
theofficialviewsoftheOECDorofthegovernmentsofitsmembercountriesor
thoseoftheGlobalForumonTransparencyandExchangeofInformationforTax
Purposes.
Thisdocumentandanymapincludedhereinarewithoutprejudicetothestatusof
orsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersand
boundariesandtothenameofanyterritory,cityorarea.
Pleasecitethispublicationas:
OECD(2013),GlobalForumonTransparencyandExchangeofInformationforTaxPurposesPeer
Reviews:Sweden2013:Combined:Phase1+Phase2,incorporatingPhase2ratings,OECD
Publishing.
http://dx.doi.org/10.1787/9789264205949-en
ISBN978-92-64-20593-2(print)
ISBN978-92-64-20594-9(PDF)
Series:GlobalForumonTransparencyandExchangeofInformationforTaxPurposesPeerReviews
ISSN2219-4681(print)
ISSN2219-469X(online)
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TABLE OF CONTENTS – 3
Table of Contents
About the Global Forum                                             5
Executive Summary                                                 7
Introduction                                                        9
Information and methodology used for the peer review of Sweden            9
Recent developments                                               16
Compliance with the Standards                                       19
A. Availability of Information                                        19
Overview                                                        19
A1 Ownership and identity information                               21
A2 Accounting records                                            44
A3 Banking information                                           51
B. Access to Information                                            55
Overview                                                        55
B1 Competent Authority’s ability to obtain and provide information        56
B2 Notification requirements and rights and safeguards                  65
C. Exchanging Information                                          67
Overview                                                        67
C1 Exchange-of-information mechanisms                             69
C2 Exchange-of-information mechanisms with all relevant partners        76
C3 Confidentiality                                                78
C4 Rights and safeguards of taxpayers and third parties                  80
C5 Timeliness of responses to requests for information                   81
Summary of Determinations and Factors Underlying Recommendations    85
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – SWEDEN © OECD 2013
4 – TABLE OF CONTENTS
Annex 1: Jurisdiction’s Response to the Review Report                   89
Annex 2: List of All Exchange-of-Information Mechanisms               91
Annex 3: List of All Laws, Regulations and Other Material Received       99
Annex 4: People Interviewed During On-Site Visit                      102
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – SWEDEN © OECD 2013
ABOUT THE GLOBAL FORUM – 5
About the Global Forum
The Global Forum on Transparency and Exchange of Information for Tax
Purposes is the multilateral framework within which work in the area of tax
transparency and exchange of information is carried out by over 120 jurisdic-
tions, which participate in the Global Forum on an equal footing
The Global Forum is charged with in-depth monitoring and peer review of
the implementation of the international standards of transparency and exchange
of information for tax purposes These standards are primarily reflected in the
2002 OECD Model Agreement on Exchange of Information on Tax Matters
and its commentary, and in Article 26 of the OECD Model Tax Convention on
Income and on Capital and its commentary as updated in 2004 The standards
have also been incorporated into the UN Model Tax Convention
The standards provide for international exchange on request of foreseeably
relevant information for the administration or enforcement of the domestic tax
laws of a requesting party Fishing expeditions are not authorised but all fore-
seeably relevant information must be provided, including bank information
and information held by fiduciaries, regardless of the existence of a domestic
tax interest or the application of a dual criminality standard
All members of the Global Forum, as well as jurisdictions identified by the
Global Forum as relevant to its work, are being reviewed This process is under-
taken in two phases Phase 1 reviews assess the quality of a jurisdiction’s legal
and regulatory framework for the exchange of information, while Phase 2 reviews
look at the practical implementation of that framework Some Global Forum
members are undergoing combined – Phase 1 and Phase 2 – reviews The Global
Forum has also put in place a process for supplementary reports to follow-up on
recommendations, as well as for the ongoing monitoring of jurisdictions following
the conclusion of a review The ultimate goal is to help jurisdictions to effectively
implement the international standards of transparency and exchange of informa-
tion for tax purposes
All review reports are published once approved by the Global Forum and
they thus represent agreed Global Forum reports For more information on
the work of the Global Forum on Transparency and Exchange of Information
for Tax Purposes, and for copies of the published review reports, please refer
to wwwoecdorg/tax/transparency and wwweoi-taxorg
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – SWEDEN © OECD 2013

EXECUTIVE SUMMARY – 7
Executive Summary
1 This report summarises the legal and regulatory framework for
transparency and exchange of information in Sweden as well as the practical
implementation of that framework The international standard, which is set out in
the Global Forum’s Terms of Reference to Monitor and Review Progress Towards
Transparency and Exchange of Information, is concerned with the availability
of relevant information within a jurisdiction, the competent authority’s ability
to gain timely access to that information, and whether that information can be
effectively exchanged with the jurisdiction’s exchange of information partners
2 Sweden is a prosperous northern European country with a popula-
tion of slightly above 9 million Sweden has a highly developed, open and
export-oriented economy Services accounts for approximately 72% of GDP,
followed by industry with 27% and agriculture with less than 1%
3 Sweden has a considerable network of 76 double tax conventions and
38 tax information exchange agreements that provide for exchange of infor-
mation in tax matters The vast majority of these agreements are in force and
to standard Sweden is also a signatory to the Nordic Convention on Mutual
Administrative Assistance in Tax Matters and Joint COE/OECD Convention
on Mutual Administrative Assistance in Tax Matters In addition, Sweden
is able to exchange information in tax matters with other European Union
Member States under EU legislation
4 Under commercial, tax and anti-money laundering legislation compa-
nies created under Sweden’s law are subject to comprehensive requirements
to maintain and have available relevant ownership and bank information
Such information is available for EOI purposes Where nominee ownership
is allowed there are also requirements to have ownership information avail-
able Issuance of bearer shares is not allowed under Swedish law Partnerships
must provide information about the identity of all partners to the Trade
Register and to the Swedish Tax Agency Although trusts are not recognised
under Swedish law a combination of accounting, tax and AML legislation
requires Swedish trustees of foreign trusts to keep information regarding sett-
lors and beneficiaries Information with regard to founders, members of the
board or managers and beneficiaries of foundations is based on registration
requirements and tax law which sufficiently ensure its availability
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – SWEDEN © OECD 2013
8 – EXECUTIVE SUMMARY
5 Swedish accounting law requires all Swedish legal entities as well as
branches and subsidiaries of foreign companies to keep adequate accounting
records, including underlying documentation, for a minimum of seven years
In respect of banks and other financial institutions, Swedish AML, banking
and accounting legislation imposes appropriate obligations to ensure that all
records pertaining to customers’ accounts as well as related financial and
transactional information are available
6 The Swedish tax administration has broad powers to access relevant
information from any person and from public authorities Non-compliance
can be sanctioned with penalties The confidentiality of bank information is
protected by law but is lifted when banks are requested by the Swedish Tax
Agency to provide information The tax administration can apply their domes-
tic powers, including sanctions, for the purpose of answering international
requests for information, including in cases where it does not have an interest in
the information for Swedish tax purposes The scope of professional privilege
under the Swedish domestic law allows for effective exchange of information
7 Sweden is able to provide all types of requested information in
adequate quality and in most cases within 90 days In the period under review
(2009-11), Sweden received 494 EOI requests Its organisational processes
and resources are adequate to meet the volume of requests it receives and
sends In the few cases where Sweden is not in a position to meet the 90 day
deadline, Sweden should establish a routine process to update requesting
authorities on the status of their requests
8 Overall, Sweden has a long history of very effective EOI for tax pur-
poses Sweden is considered to be a very good EOI partner in terms of both
timing and quality of communications A follow up report on the steps under-
taken by Sweden to answer the recommendation made in this report should
be provided to the PRG within twelve months of the adoption of this report
9 Sweden has been assigned a rating 1 for each of the 10 essential ele-
ments as well as an overall rating The ratings for the essential elements are
based on the analysis in the text of the report, taking into account the Phase 1
determinations and any recommendations made in respect of Sweden’s legal
and regulatory framework and the effectiveness of its exchange of information
in practice On this basis, Sweden has been assigned a rating of Compliant for
each essential element In view of the ratings for each of the essential elements
taken in their entirety, the overall rating for Sweden is Compliant
1 This report reflects the legal and regulatory framework as at the date indicated
on page 1 of this publication Any material changes to the circumstances affect-
ing the ratings may be included in Annex 1 to this report
PEER REVIEW REPORT – COMBINED PHASE 1 AND PHASE 2 REPORT – SWEDEN © OECD 2013