Music business

Roxette duo both lose fight over taxes from 1995

STOCKHOLM - Per Gessle and Marie Fredriksson have been involved in what's been labeled by the Swedish government as tax evasion.

  After the "Crash! Boom! Live!" tour in Germany back in 1994-95, Per and Marie used their holding company Roxette Productions to account for this income. The Swedish income tax authority disagrees with this bookkeeping method and wants them to pay taxes personally on the income. The authority claims they were employed by tour company EMA Telstar and should therefore pay normal income tax on the 5.6 million kronor (€590,000) paid for the 19 concerts in Germany.

  Per and Marie have been fighting this for almost ten years via their financial advisor Mats Nilemar of Desert AB.

  Per owes 2.3 million kronor in back taxes and Marie owes 2.2 million, according to Swedish press reports.

  When the tax authority first issued it's claim against them, both Per and Marie appealed the decision to Länsrätten, the first administrative court, which ruled in favor of the government in 2004. Roxette appealed again, to a higher court named Kammarrätten. In rulings issued during the past few days, this court upheld the lower court's decision.

  Nilemar says that they will appeal once more, this time to Regeringsrätten, the highest administrative court in Sweden. Regeringsrätten will only decide to hear this case if they find it necessary to set a new precedent in this specific part of Swedish tax law. If this high court decides not to take the case, then the current ruling will be considered final.

Additional reporting by Thomas Evensson

This article was written for an earlier version of The Daily Roxette.
Technical errors may occur.

  ★ The author:

  ★ Publishing date:

September 25th, 2006

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Archive, TDR:Music Business, vintage.

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