Court of appeal rules in favour of NC Advisory AB in tax case

DECEMBER 19 2013

The Stockholm Administrative Court of Appeal announced in its decision today that NC Advisory AB has won its case against the Swedish Tax Agency and that the company paid tax in accordance with applicable law.

"It is good that this issue has now undergone a thorough legal review. The Administrative Court of Appeal has confirmed that NC Advisory AB has paid tax in accordance with applicable law. This issue has created great uncertainty and taken a great deal of resources for the entire industry and from the Tax Agency - it's positive that a determination has been made in terms of what applies," says Joakim Karlsson, Managing Partner, NC Advisory AB, advisor to Nordic Capital's funds.

"Only with clear, long-term regulations can we maintain and strengthen Sweden's position as an attractive investment country and provide favorable conditions for investment and development in Sweden. Clarity and regulatory certainty are essential," says Kristoffer Melinder, Managing Partner, NC Advisory AB, advisor to Nordic Capital's funds.

"From a legal point of view this verdict has clearly shown what NC Advisory AB has claimed all along. NC Advisory AB has paid tax in accordance with current legislation. Tax Agency's argument to the contrary has not been shown to have a legal basis" said Sven-Åke Bergkvist, Mannheimer Swartling Advokatbyrå AB, counsel for NC Advisory AB.

The case on appeal concerned fiscal year 2007-08. Today's ruling confirms NC Advisory AB's argument: that profit sharing should be treated as investment returns for fund investors.

For further information, please contact: 

Katarina Janerud, Communications Manager,
NC Advisory AB, advisor to the Nordic Capital Funds
Phone: +46 8 440 50 69

About Nordic Capital

Nordic Capital private equity funds have invested in large and medium sized companies primarily in the Nordic region since 1989. Through committed ownership and by targeting strategic development and operational improvements, Nordic Capital has supported value creation in its investments. Nordic Capital funds' investors are principally international institutions. Nordic Capital funds invest in companies in northern Europe and in selected investment opportunities internationally. Nordic Capital funds are based in Jersey, Channel Islands and are advised by the NC Advisory companies in Sweden, Denmark, Finland, Norway, Germany and the UK. Additional information about Nordic Capital is available at