Taxation of Criminal Activities: Income and VAT Implications for Individuals under Swedish Law

• A person cannot be taxed for business income from activities that are entirely criminal, but such income may be taxable as employment or capital income.
• The Supreme Administrative Court’s (HFD) ruling changes the Swedish Tax Agency’s previous assessment.
• Criminal activities can also be subject to value-added tax (VAT).
• The case involved a person convicted for helping others cheat on university entrance exams for payment.
• The court sent back questions about income tax (as employment income), VAT, employer contributions, and unwithheld tax for further review.

Source: www4.skatteverket.se

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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