Court upholds tax-free sale of Volvo car biz

STOCKHOLM, SWEDEN – Sweden’s Supreme Administrative Court ruled yesterday to allow Volvo to stick with its calculations regarding the sale of Volvo Car Corp. to Ford, and as a result the US $6.4-billion deal did not generate any taxable capital gain. The decision upheld an advanced ruling issued by the Swedish Council for Advanced Tax Rulings pertaining to AB Volvo’s February sale.

The Swedish National Tax Board appealed the ruling to the Supreme Administrative Court, which now in its decision has upheld the advanced ruling of the Council for Advanced Tax Rulings.

The decision of the Supreme Administrative Court was unanimous. n