JULY 18, 2009 • The Stockholm News reported that Sweden’s Tax Agency has assigned 60 of its officers to investigate unreported online income. So far most attention has been focused on online gambling, from which has been recovered 350 million SEK. But the Tax Agency is also looking at the sale of online game items like avatars, sales which have been deemed taxable. During a 14-month investigation the agency discovered Swedes advertised avatars for sale at an aggregate of 662 million SEK. During that same period no Swedish citizens declared any income from avatar trading.
Impact: Every year the Swedish Tax Agency usually pinpoints different businesses or areas where they suspect fraud or any other undeclared income. This is standard procedure and a way to inform and enlighten people about tax law. This year its video game avatars, but it could just as easily have been taxation related to house sales. Most Swedes will see this announcement as a sort of follow up to remind the people what’s taxable, and to show the result of the Tax Agency’s work.
