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Swedish mayor criticises Danish tax system

The mayor of Malmø is calling for a synchronised tax system between Swedish and Danish authorities to avoid tax fraud

It is possible to fiddle with your taxes if you live in Sweden and work in Denmark. At least, this is what Ilmar Reepalu, Malmø's mayor claims.

Reepalu warned that it was possible, for the 16,000 commuters who made the daily journey to Copenhagen, to cheat about their actual incomes. And the closed nature of the Danish tax system was why it was possible.

Swedish authorities do not have any way of knowing the Danish income of Swedish residents.

Despite earning a high salary, a resident could inform the Swedish tax authorities that his or her income was substantially lower and be eligible for various grants, including child support and housing grants.

'We don't want a system that invites deceit,' Reepalu told Swedish Metro newspaper.

He dared not estimate the extent of what he considered tax swindling by Swedes and Danes with addresses in Sweden.

'We don't know the exact figures as there is no way of finding out. But there are always people who will cheat the system,' he stated.

He also called for better co-operation between the Danish and Swedish tax systems.

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