SWEDEN may soon see stricter interest deduction rules come into play. The Swedish finance minister, Anders Borg , is reported to have said that the Swedish tax agency will soon intensify the investigation procedures in interest deductions and that there would be a review of the rules and that the new rules would be enforced by 2013. Also a committee has been set up by the Swedish government to monitor the corporate tax regulations.

There will, of course, be a challenge to conform the rules to the European Union law. Some members have welcomed the proposal but have stressed on the need for the initiative to be internationally competitive and cushion the negative impact if any. Though the new rules regarding the intra group deductions are yet to be made clear, it is evident that the previous rules shall be scrapped and and Swedish companies would coon have to clear out details of their intra group loans.