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TAXES

Bildt plays down nanny tax ‘scandal’

Sweden’s foreign minister Carl Bildt has dismissed allegations that he has been flouting the country’s tax rules by not paying any taxes for his nanny in Sweden.

The denial comes following an article in the Aftonbladet newspaper which revealed that Bildt’s nanny, despite being registered as a resident in Sweden, has her income taxes and social fees paid in Italy.

The nanny, a 46-year-old woman from Ukraine, was originally employed in Italy by Bildt and his Italian wife, Anna Maria Corazza Bildt, and splits her time between Italy and Sweden.

“It’s absolutely correct that she isn’t bound by any tax in Sweden. That is a decision which was taken by the tax authorities based on the information they received,” Bildt commented on his blog.

Bildt’s wife told Aftonbladet that the nanny is registered in Sweden so that she can have as many rights as possible.

In addition, said Corazza Bildt, the family’s tax matters, including paperwork related to the nanny’s Swedish work permit, had been handled by the Öhrling Pricewaterhouse Coopers accounting firm.

But according to Pia Blank Thörnroos, an expert from the Swedish Tax Agency (Skatteverket), the general rule is that if someone is registered as a resident of Sweden, that person should pay tax in Sweden.

The Bildt family counters that their nanny is in Sweden fewer than six months out of the year.

If that is the case, said Blank Thörnroos, then the nanny ought not to be registered in Sweden in the first place.

Moreover, even work carried out in Sweden by people registered as residents of other countries are subject to a special 25 percent income tax, a rule to which the Bildt family has failed to abide.

Corazza Bildt tells the newspaper that she trusts the accounting firm has “taken care of the entire process”.

“These are very complicated issues, I want to be sure that they are handled in the right way,” she said.

“But this is a surprise to me. I’ll have to look into it.”

On his blog, the foreign minister accused Aftonbladet of trying to create a scandal where none exists.

“The whole arrangement has been formulated by one of the country’s most respected accounting firms,” he writes.

“The scandal isn’t any bigger than that.”

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How to avoid falling victim to tax scams in Sweden

Sweden's tax agency, Skatteverket, warns of an increase in scams when it's time for Swedish tax-payers to declare their taxes.

How to avoid falling victim to tax scams in Sweden

Anyone who earned more than 22,208 kronor last year received their tax returns digitally last week, marking the start of tax season.

That also means an expected peak in tax-related scams, Skatteverket warns.

Most of the scams are so-called phishing scams, meaning attempts to steal the victims’ personal information. Fraudsters may for example email a person, pretending to represent Skatteverket, and ask them for, among other things, their banking details.

“We’re seeing these in all channels. They use fake emails, SMS, letters and in some cases even phone calls. It is particularly common in tax declaration times – just when we’re about to send out the tax returns, the e-service opens and it’s possible to declare – but above all when it’s time for tax rebates,” Jan Janowski, a Skatteverket expert, told Swedish news agency TT.

A scam email might for example state that you’re entitled to a tax rebate and that you should click a link to receive it. Don’t click any links, open any attachments or reply to the message. Skatteverket advises that you immediately delete the email or text message.

Another common scam is that you receive a text message claiming to be from Skatteverket, telling you that you owe them money and you need to log in to calculate the amount. The website you’re urged to log in via does not belong to Skatteverket. Don’t click the link.

The agency stresses that it never asks people for their banking details. The exception is that you may be asked for your bank account information if you log into Skatteverket’s website to declare your taxes, but that always first requires you to log into the site.

To receive your tax rebate, you need to inform Skatteverket of your bank account number. You do this not by clicking a link in an email or SMS, but by logging into their website using a digital ID, for example BankID, and submitting your details. Only do this on your own initiative. If someone calls you and asks you to log in with your BankID during the phone call, don’t do it. That’s another common scam.

Skatteverket will also never call you to ask for your bank account or credit card number.

It will be possible to declare your taxes from March 19th. You’ll receive any tax rebate you’re owed by mid-April or early June, depending on when you submit your tax return. These are the dates when fraudsters are likely to attempt the most scams.

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