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‘Taxfree bartender’ stirs Swedish class debate

A Stockholm party planner who offered a tax deduction to customers hiring a bartender has fuelled a raging debate about a tax reform originally meant to ease the burden of working families.

'Taxfree bartender' stirs Swedish class debate

“This was a borderline case and we decided to be generous in our interpretation,” Tax Authority (Skatteverket) legal expert Pia Blank Thörnroos told the TT news agency.

“A bartender is the furthest we’ll go.”

The centre-right government coalition introduced the “RUT-avdrag” reform in 2007. It allows tax deductions within cleaning, maintenance and laundry (Rengöring, Underhåll och Tvätt, which is where the acronym comes from).

“We introduced the reform to make under-the-table jobs into proper work, with employment security and pension contributions,” Moderate Party MP and Parliamentary Tax Committee chairman Henrik von Sydow told The Local.

In 2010, the tax authority calculated that the reform had created the man-hour equivalent of 5,000 jobs.

“We’re happy with the reform. Many people are in favour of it and it is often cited as one reason why Swedes are more positive to paying taxes than they were before,” von Sydow added.

However, as RUT was intended for “core household services”, the bartender case has raised eyebrows.

“It is up to the Tax Authority to make the judgment of what is tax deductible,” von Sydow said.

Following news about the bartender, Swedish media quickly uncovered several other borderline deductions claimed as household services.

For example, another events planner tells prospective customers they can deduct part of the cost for kids’ birthday parties.

“It’s covered by RUT if you register it as ‘taking care of children’, which is what it is,” a company representative told Sveriges Television (SVT).

According to the tax agency’s website, activities covered by RUT include hiring a cleaner or nanny (see full list in link below).

RUT has frequently been the subject of infected political debate. Left-leaning commentators argue that it entrenches the class system in a society which once prided itself as a champion of equality.

“When it was introduced I thought it was a joke,” cartoonist Mats Jonsson at the political satire magazine Galago told The Local.

“It signalled that society was heading in the wrong direction.”

Jonsson fears the current debate could ‘skew the perspective’.

“RUT is absurd in and of itself but when it is applied to bartenders, clowns and jugglers, then getting tax deduction for cleaning and child care seems normal.”

Ann Törnkvist

Follow Ann on Twitter here

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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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