Press Release: Direct taxation: Commission requests Sweden to change restrictive exit tax provisions for companies

The European Commission formally requested Sweden to change its tax provisions which impose an exit tax on companies ceasing to be taxable in Sweden. The provisions were incompatible with the freedom of establishment as guaranteed by Article 43 of the EC Treaty and Article 31 of the EEA Agreement. The request took the form of a reasoned opinion (second step of the infringement procedure provided for in Article 226 of the EC Treaty). If there is no satisfactory reaction to the reasoned opinion within two months, the Commission may decide to refer the matter to the Court of Justice of the European Communities.