Sweden: Taxpayer entitled to penalty relief for incorrectly claimed interest deductions (Court of Appeal decision)
A taxpayer that claimed incorrect interest deductions and failed to file an N9 form with its income tax return was entitled to relief from penalties.
The Court of Appeal held that a taxpayer that claimed incorrect interest deductions and failed to file an N9 form with its income tax return was nonetheless entitled to relief from penalties because the company had corrected its income tax return and paid the associated tax.
Background
Since the general interest deduction limitation rules were introduced on 1 January 2019, taxpayers that claim deductions for negative net interest income must attach an N9 form to their income tax returns. The same requirement applies to companies that claim deductions for remaining negative net interest from previous years, claim deductions for a negative net interest that has arisen at another group company, or transfers a negative net interest to another group company (so-called group equalization). In addition, companies that claim deductions for negative net interest income according to the simplification rule must attach N9 if they are part of a community of interests or the company's negative net interest income exceeds five million kroner.
Read a March 2024 report (Swedish) prepared by the KPMG member firm in Sweden