9.10.2024

They are in for a rude awakening

During Covid-19, several Swedish companies found themselves in an acute liquidity crisis. In order to "help" these companies, the socialist government at the time decided that the companies that found themselves in an economic crisis could apply for a deferment with payments of employer's contributions, deductions for withholding tax and VAT. Giving the companies a reprieve was more of a disservice than a benefaction.

That it is more of a disservice than a benefaction is due to the fact that tax payments in Sweden become personal in the event of bankruptcy. On September 12, 2024, all taxes previously granted deferment must be paid. Businesses that cannot pay these taxes will eventually go out of business. The consequence is that these entrepreneurs become personally responsible for the taxes. If the companies had been forced to go bankrupt during the pandemic, the tax liabilities would most likely have been significantly lower.

No comments:

Post a Comment

How did we end up here?

Our shop is located on one of Stockholm's avenues, where the driving lanes are separated by trees and grass. Last week it rained non-sto...