The Swedish Tax Agency ("Skatteverket") is an authority whose decisions can have a significant financial impact on both individuals and companies, especially in cases where the Tax Agency makes decisions about so-called "subsequent taxation" – that is, increasing the assessed tax retroactively. Unfortunately, it happens that the Swedish Tax Agency to adopt an excessively strict stance, resulting in the taxation of individuals and companies in a manner that does not comply with current legislation. If you suspect this is the case, you should, as the affected individual or company, appeal the Swedish Tax Agency's decision. In this article, we will go through how to do this and what to particularly keep in mind.
What is an Appeal?
Since the Swedish Tax Agency, like all other authorities, sometimes makes incorrect decisions, the affected individual or company has the right to appeal the Swedish Tax Agency's decision to a court. This right to appeal government decisions is a fundamental part of the rights an individual has against the state in a democracy.
In Sweden, there are generally two types of courts: general courts and administrative courts. It is the latter type of court that handles tax matters.
By appealing a decision from the Swedish Tax Agency, you get the right to a judicial review of the correctness of the decision, by the court. The outcome of an appeal can be that you win – that is, the Swedish Tax Agency's decision is overturned. The outcome can also be that the Swedish Tax Agency wins, meaning your appeal is rejected, or that one of the parties (you or the Tax Agency) is partially successful.
How to Appeal the Swedish Tax Agency's Decision
Appealing a decision from the Swedish Tax Agency is done by submitting a written appeal to the Swedish Tax Agency. There are certain requirements for an appeal to be complete. Among other things, it must state which decision is being appealed, your claim (how you believe the decision should be changed), and the grounds you are invoking in support of your claims. It is also required that the appeal is submitted within the prescribed time (see more about this below).
It is possible to appeal a decision from the Tax Agency without hiring legal expertise. However, we argue that it is rare for an individual or a company appealing without representation to actually win in court against the Swedish Tax Agency. The reason is that law in general, and tax law in particular, is relatively complicated, which requires that a lawyer with specific specialization in tax law argues your case.
According to Swedish legislation, no so-called "leave to appeal" is required when appealing decisions from the Tax Agency. However, if an individual wants to appeal a judgment from an administrative court ("Förvaltningsrätt") to a court of appeal ("Kammarrätt"), leave to appeal is required in certain cases. In most tax cases, this is not required. If leave to appeal is not granted, this decision, that is, the decision not to grant leave to appeal, can in turn be appealed to the Swedish Supreme Administrative Court ("Högsta Förvaltningsdomstolen").
The process of appealing tax decisions is generally written, which means that no physical "trial" (main hearing) usually takes place. Instead, the administrative court decides the matter based on the documents. However, it is possible to request an oral hearing in tax cases, which means that the parties will meet in a courtroom, in what is generally referred to as a "trial". There is no unconditional right to an oral hearing; this must be requested by either party and granted by the administrative court.
Does it Cost to Appeal the Tax Agency's Decision?
In Sweden, there is no cost to appeal the Tax Agency's decision to an administrative court. Of course, the cost of legal representation should be considered when an individual or a company is contemplating appealing the Tax Agency's decision. In some cases, it is possible to get compensation for legal costs from the state, and in some cases, an individual or a company may have their legal costs covered by insurance. We always recommend that a cost-benefit analysis is conducted based on the expected chance of success, as well as the expected outcome of an appeal (how much the tax can be reduced), before an appeal is prepared and submitted. We often assist our clients with such an analysis.
How Long Does an Appeal of the Tax Agency's Decision Take?
Unfortunately, it is relatively common for administrative courts to have long processing times, which means it takes a long time before the court reviews an appeal. It is rare to see cases taking less than six months in the administrative court, but this is highly dependent on which administrative court the case is to be ruled in.
How Long Do You Have to Appeal a Decision from the Tax Agency?
Generally, an individual or a company can appeal a decision on final tax within six years from the end of the income year to which the matter concerns. For example, this means that throughout 2024, you can appeal decisions on final tax that concern taxes for the year 2018 and onwards. When appealing other types of decisions made by the Tax Agency, the appeal period is sometimes shorter. There are also situations where an extended time for appeal applies – for example, in connection with the Tax Agency's decision on reassessment through so-called "subsequent taxation" ("Efterbeskattning").
What Consequences Can an Appeal of the Tax Agency's Decision Have?
As mentioned above, an appeal can be wholly or partially successful. It is also possible that an appeal is entirely rejected – which means that the appealed decision will stand. In some cases, it is also possible for the administrative court to dismiss the appeal, which means that the court, for some reason, has concluded that the case should not be reviewed by the court. This can, for example, involve cases where the time to appeal a decision has expired or that certain so-called "formal requirements" have not been met.
Have you received a decision from the Tax Agency that you believe is incorrect? Are you considering appealing the decision? Do not hesitate to contact us for assistance with an appeal.
Comments