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ECONOMIST

Swedes urged to rally against lower taxes

As Sweden's political leaders wrap up their summer speeches and the prime minister's popularity is in flux, the left-leaning tabloid Aftonbladet has asked Swedes to revolt against the government's plans for further tax breaks.

Swedes urged to rally against lower taxes

In an editorial published on Tuesday, the paper took issue with Fredrik Reinfeldt’s continued focus on tax cuts in his traditional summer speech, at a time when Swedish students appear to be increasingly getting a raw deal in school.

“If Sweden wants to stop plummeting in international (education) comparisons, the money that Reinfeldt wants to waste with new tax reductions should instead go to the schools,” argued Aftonbladet, which also took a swipe at the opposition Social Democrats.

“The Social Democrats say they are against the tax cut, but don’t want to promise to stop it. That is an incomprehensible strategy. It signals they’ve given up, and their lack of self confidence.”

No stranger to campaign journalism, the cantankerous tabloid has now asked Swedes to sign a protest letter against further tax breaks.

With 13 months left until general elections, the anti-tax break campaign comes at a time when the chances of another victory for Reinfeldt’s centre-right coalition are in doubt.

“What has gone wrong?” The Economist magazine asked this week in trying to understand Reinfeldt’s declining popularity. “Compared with most of Europe, Sweden has done well. But unemployment is a running sore. It was a big reason for the Social Democrats’ defeat in 2006, when the rate stood at only 6 percent and Mr. Reinfeldt promised to boost jobs by cutting income tax and welfare benefits.”

Since then, however, once buoyant Sweden faces unemployment above 8 percent, with difficult-to-tackle youth unemployment a constant battleground for warring politicians.

In July, pollsters at Demoskop found only 37.1 percent of the Swedish electorate happy with backing Reinfeldt’s government coalition, a four-party construction branded and marketed as the Alliance in 2006. The Green, Left, and Social Democrat opposition, which is neither streamlined nor cohesive but nonetheless has much in common, scraped together 50.4 percent.

Enterprise Minister Annie Lööf lashed out at the opposition’s discordant voices during a recent parliamentary debate, tweeting the quizzical “When will they get along?”

But getting along has been a leitmotif for the Alliance, and getting along with anyone in Rosenbad, Sweden’s Whitehall, will be difficult if her Centre Party doesn’t get the required four percent to get into parliament. A third Alliance partner, the socially conservative Christian Democrats, are also sploshing about sub-four percent in recent opinions polls.

Add Sweden’s unemployment woes the recent debacle surround energy giant’s Vattenfall’s purchase of Nuon.

The Local asked Lööf last week if the Nuon deal, handled in part by proxy by her predecessor Maud Olofsson, risked damaging her party’s chances in the upcoming elections. She ducked and took cover.

“No, the voters next year would like to vote on more jobs, more green growth, and policies that will make the whole Sweden grow and that’s opinions that my party is in favour of,” she said, adding that these are issues her party was working on.

However, the Centre Party is not alone in wanting to tackle these issues. The Alliance must tackle it, and, as The Economist noted, tax-cuts to stimulate spending has not been enough.

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MONEY

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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