Tough year ahead for ROT deduction

The government’s announcement that it will lower tax deductions for domestic service work and household repairs (ROT deduction) from 50% to 30% has brought the sector to a standstill.

According to estimates by the Swedish Construction Federation (BI), there is a risk that up to 8,300 jobs will disappear if the ROT deduction is lowered.

“As yet no decision has been pushed through the Riksdag so there is still an opportunity to back down from the proposal,” says Björn Wellhagen, enterprise policy director at BI.

Both the Economic Crime Authority (EBM) and National Financial Management Authority (ESV) have given thumbs down to the government’s proposal and warn of an increase in the shadow economy.

ID fraud soars

images-1The number of reported, suspected cases of perjury/forgery such as hijacking someone’s identity or using fake passports has surged from 350 in 2012 to 2,209 in 2014, show fresh figures from the Economic Crime Authority (SECA).
The trend is similar for accounting fraud and embezzlement, where the number of reported suspected cases, which totalled 2,705 in 2012, increased to 11,194 in 2014.
Eva Fröjelin, director general of SECA, describes the trend as a “brutal” awakening.