Yesterday, on 27 January 2020, the Supreme Administrative Court of Sweden (“SAC”) announced its decision on the appealed advanced tax ruling regarding VAT for the Swedish subsidiary EQT Partners AB. The SAC mainly subscribed to the approach of the Swedish Tax Agency.
As described in EQT AB’s prospectus published in connection with the listing on Nasdaq Stockholm in September 2019, EQT Partners AB appealed for an advanced tax ruling regarding VAT in 2018. The appeal related to VAT on advisory services.
In the prospectus, the potential VAT payables, related to the period from January 2016 until June 2019, were estimated at SEK 200-350 million for EQT Partners AB. EQT will analyze the consequences of the SAC decision and at this stage, there is no reason to make a different assessment for the period in question.
To access the EQT AB’s prospectus: www.eqtgroup.com/shareholders/prospectus
Excerpt from the prospectus:
The EQT AB Group is from time to time subject to tax reviews and audits, potentially resulting in tax disputes. During 2018, EQT Partners AB applied for an advance tax ruling, regarding VAT, from the Swedish Counsel of Advance Tax Rulings. The ruling of the Swedish Counsel of Advance Tax Rulings, passed on 23 January 2019, was in favor of EQT Partners AB. The Swedish Tax Agency has appealed the ruling to the Supreme Administrative Court where the case is expected to be tried in court during September 2019, the EQT AB Group expects the Supreme Administrative Court’s ruling in the matter between October and November 2019. There is a risk that a negative ruling from the Supreme Administrative Court could result in taxes payable in a worst-case scenario for EQT Partners AB by way of reassessments of historical years. Due to the complexity of the case, potential taxes payable, attributable to the period of time from January 2016 up to and including June 2019, in the event of a negative ruling are estimated to be within the range of SEK 200 to 350 million for EQT Partners AB.
Nina Nornholm, Head of Communications, +46 70 855 03 56
EQT Press Office, email@example.com, +46 8 506 55334
EQT is a differentiated global investment organization with a 25-year track-record of consistent investment performance across multiple geographies, sectors and strategies. With strong values and a distinct corporate culture, EQT manages and advises funds and vehicles that invest across the world with the mission to generate attractive returns to the fund investors. EQT’s talent base and network allow it to pursue a unique value creation approach and thematic investment strategy, with the aim of future-proofing the companies which EQT invests in, creating superior returns and making a positive impact with everything EQT does.
EQT has more than EUR 62 billion in raised capital since inception, currently around EUR 41 billion in assets under management across 19 active funds within three business segments – Private Capital, Real Assets and Credit. EQT is a thought leader within the private markets industry with deep expertise in responsible and long-term ownership, corporate governance, operational excellence, digitalization and sustainability. EQT has offices in 15 countries across Europe, Asia Pacific and North America with more than 700 employees.
The EQT AB group comprises EQT AB (publ.) and its direct and indirect subsidiaries, which includes general partners and fund managers of EQT funds as well as entities advising EQT funds.