SE: Swedish tax gap map

Brochure (2 pages PDF, in English) of Swedish Tax Agency published in October 2007 presenting estimates of the overall tax gap in Sweden. The estimate is broken down both by main tax head and by taxpayer group. According to these estimates, 26 per cent of the gap relates to VAT; a similar proportion is accounted for by the gap relating to social security charges, and by the gap relating to income tax/business activities.

For the purpose of these estimates, the Tax Agency defines the tax gap as

the difference between the tax that would have been determined – if all taxpayers had reported all of their activities and transactions correctly – and the tax that was determined in practice (after the Tax Agency's compliance controls).

An accompanying report (224 pages PDF in Swedish) provide further details about the tax gap map including a description of the bottom-up estimates underlying it. A briefer version of this (71 pages, PDF) is available in English. In relation to VAT, the report presents a bottom-up estimate of the VAT gap of around SKR 35 billion (an annual average for 2001-2005); this contrasts with the considerable lower top-down estimate of SKR 4.1 billion in 2001 and of SKR 1.6 billion in 2002 (the two most recent years). No real explanation is given for the contrasting numbers in the presentation set out on pages 41 and 42.

For further information or advice please contact Pedro Fernandes.

Filed under Tax fraud, VAT.

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