Response to interpellation 2024/25:743 on VAT fraud

Finansmarknadsministern Niklas Wykman (M)

Mr. Speaker! Marie Olsson has asked Finance Minister Elisabeth Svantesson when the government will present the proposals required for the Riksdag to be able to make decisions to stop the billions in fraud in the form of VAT fraud. The interpellation has been handed over to me.

Organized crime is a threat to the system and has several sources of funding, including various forms of fraud. Criminal profits are laundered in the financial system and reinvested in criminal activity.

In the final report of the commission of inquiry Measures against VAT fraud (SOU 2024:32), it is proposed that the Swedish Tax Agency should be given tools to be able to cut off fraudsters' access to the VAT system, among other things by being able to de-register persons who commit VAT fraud. The report has been referred and is being prepared within the Government Offices. The Government intends to return to the Riksdag in the near future with proposals for measures.

The government is working systematically to combat various forms of fraud. Step by step, safety shall be won back.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Marie Olsson (S)

Mr. Speaker! I would like to begin by thanking the Minister for the answer to my interpellation.

The organized VAT frauds, so-called carousel trading, cause billions in losses for the state every year. They threaten both the legitimacy of the tax system and the competitive conditions for serious companies. The Swedish Tax Agency has for a long time warned that international networks are active in Sweden again, and the Swedish Tax Agency has pleaded for urgent measures from the government's side. VAT frauds are crimes where companies incorrectly handle value-added tax by either withholding VAT that should be paid to the state or deducting VAT that was never paid.

The government has had a completed investigation since May 2024, Statens offentliga utredningar 2024:32, with concrete proposals on how tax authorities can be given better tools to prevent and stop fraud. But nothing has happened until now, when the proposals are finally included on the list of bills that the government intends to submit this year. It states that this is to come in December this year – that is 20 months after the report was completed. I can add that this interpellation was submitted before the government sent out its list of bills.

Mr. Speaker! The criminals have found new loopholes with advanced schemes where tax money disappears in carousel trading and sham transactions. The Swedish VAT system is under attack, and several billion are leaking away. The Swedish Tax Agency has constantly requested better tools to stop the frauds and prevent them from arising in the first place. The measures contained in the completed investigation are being requested. Almost all referral bodies have supported the proposals in the investigation.

The final report is now more than a year old, and the government's bill will not arrive until December. During this entire time, organized crime continues to earn billions from the frauds. My question to the Minister is therefore why it has taken so long to present the proposals to stop the VAT frauds.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Finansmarknadsministern Niklas Wykman (M)

Mr. Speaker! One could perhaps characterize Marie Olsson's contribution as whiny. It is asked why it has taken so long. One could then answer as it is, namely that VAT regulations are very complicated matters. It is complicated in itself with the VAT system. Not least, there is also EU legislation or EU rules in the area to adhere to. One therefore needs to think carefully about what one is doing.

But, Marie Olsson, one can also observe how things stand after your eight years in power, with a very weak leadership for Sweden: Magdalena Andersson, Mikael Damberg, Morgan Johansson, Annika Strandhäll. Why did it take so long to even manage to carry out such an investigation? Why did the previous government wait to do this? The questions are, of course, unanswered. I understand the bad conscience the Socialdemokratern feel for letting organized crime eat itself so deeply into Swedish society.

There are, therefore, two alternative answers as to why things take time, in addition to the complexity of the VAT system – the complexity of this being regulated both at the national level and at the EU level. It is about the great ingenuity that exists when it comes to committing different types of VAT fraud. Much of this has been rewritten in the media.

The second is, of course, the empty table that the previous government left behind when it came to crime fighting. The very serious crime had been allowed to eat its way into Swedish society, into our welfare systems, into the tax system, and out on the streets and squares.

The Swedish people were amazed by the passivity that prevailed when it comes to tackling different types of cheating and fraud. It is easy to be bold when one is in opposition, but it reflects poorly when one has been so weak in a government position as the Social Democrats were when it comes to organized crime.

Now, instead, measures follow measures. But one wonders where the Social Democrats are in all of this. What actually happened in Botkyrka? Many wonder. What do the connections look like between different types of fraud, crime, and cheating in our Swedish society? We see it on streets and squares. We see it everywhere, also in the welfare system.

Here, the government is now taking the long-awaited measures to push back the criminal economy. It has been needed in several areas and continues to be needed in several areas. Phone scams are an example where we have needed to both take and make strong measures and markings.

The previous government chose to create fast lanes for certain oddities, for example when it comes to telephone sales. Lotteries and games were to be sold without written consent. Why did they let it be so? It is obviously difficult to say. But we could guess that it was due to a party having its own lottery that they made money from.

We have instead pushed back the fraud. Crime profits have decreased by 40 percent. Where some stood helpless, we have been active and pushed back the crime.

Now come also the proposals for how we shall push back the VAT frauds. It is a very important task. That type of MTIC fraud or carousel fraud where one drains our tax system of money must be stopped. But I wonder why it was not done during the eight years when Marie Olsson's party held power.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Marie Olsson (S)

Mr. Speaker! I want to begin by addressing the fact that the Minister perceives this as whining. These are extremely serious crimes that drain the state of billions, of tax money that we pay in. If the Minister perceives it as whining, then that is up to the Minister.

And as usual, it is the Social Democrats' fault again, according to the minister, who says it was empty tables. But when the Swedish Tax Agency raised the alarm during the Social Democratic government, political decisions were quickly put into motion. The Social Democratic government showed decisiveness and introduced countermeasures, which led to over 60 people being convicted for the frauds.

We are talking about losses in the billions due to VAT fraud. But the Minister is busy talking about telephone sales and lottery sales. That says quite a lot about this government and about how seriously different things are taken. It is very regrettable.

After the decisions that the Social Democratic government took, the criminal gangs have now found new ways to carry out VAT fraud. A new wave is washing over Sweden. Further measures are needed to stop it.

Measures are now being proposed, for which a government bill will be submitted in December. It is very good – better late than never. They would mean that we could significantly reduce VAT fraud and the billions that are currently flowing out to criminals. Several of us are also convinced that a portion of these billions flows out to gang crime in Sweden. It feeds gang crime. Therefore, it is even more urgent to take measures.

Within the EU, it is estimated that VAT fraud costs approximately 600 billion kronor per year. That is an enormous amount of money. And some of those billions come from VAT fraud in Sweden.

There is another way to approach this. Here are Social Democratic proposals, which the Minister requests. In addition to what is proposed, one could listen to our proposal to introduce Swedish mafia legislation. Through it, entire networks and organizations could be judged based on patterns of organized crime, such as VAT fraud. With a mafia law, we could also hold everyone who signs agreements and contracts with criminal organizations and their companies accountable for participating in the frauds. In short, we would be able to reach significantly more people who, in different ways, contribute to the system-threatening organized crime receiving money from our common tax money for their operations and their luxurious lives.

The Minister has pointed out that we Social Democrats have no proposals. I have now presented proposals. I would like to conclude the speech by asking the Minister if the Minister is prepared to take further measures to tighten the possibilities for VAT fraud even further. We know, however, that when we have introduced certain measures, new loopholes are found. Now, there are proposals for new measures from the government in the bill. The risk is that new loopholes will be found.

Is the Minister prepared to take further measures, for example, to introduce a Swedish mafia legislation?

The speech at riksdagen.se, in Swedish (opens in a new tab)

Finansmarknadsministern Niklas Wykman (M)

Mr. Speaker! This government is taking measure after measure. Let me return to that.

The most important measure to continue towards a development where the Swedish people can feel more confident both for the future and for their own security is, however, to keep the turmoil that created the problems we have in Sweden away from power. Morgan Johansson and other Social Democrats stated that they would soon have defeated the gangs while the problems on the streets escalated.

We also hear Marie Olsson speak about how terrible it is that I talk about telephone fraud, which is something that escalated and eroded people's sense of security. They did not only steal many elderly people's last money but also their last trust in Swedish society. It is nothing that can be downplayed.

When I hear Social Democrats downplay telephone fraud and the fear that the elderly feel when it rings, I always wonder if they feel any genuine remorse over enriching themselves. They let young people – in the media, there has even been talk of links to criminals – sit down on the Spanish coast and call the elderly to sell lottery tickets and let them feel despair and fear. Is there any genuine remorse over them making themselves part of such a culture?

This government is acting in the opposite direction, to win back safety and to push back the criminals. The crime profits from telephone scams have decreased by 40 percent. We have removed the Social Democratic preferential treatment for selling lottery tickets without consent over the phone. All of this we do to rebuild and recreate the safety that elderly and vulnerable people deserve to have.

When the phone rings at home, one should be able to think with joy that it is children or grandchildren who want to hear how things are going, or that it is a message from the health center. One should not feel fear that it will be scammers or persistent salespeople from Barcelona who want you to gamble away your money.

When it comes to the VAT frauds, measures are now being taken. Just as the interpellator notes, the proposals are included on the government bill list. Now measures are coming. During eight years with the Social Democrats, those measures did not come. Now they are coming.

More money has also been allocated to the justice system. It is harsher penalties, new powers, and new tools. We are breaking down the criminal economy with measure after measure. We have set requirements for the banks. We have given assignments to the Swedish Post and Telecom Authority and assignments to the Financial Supervisory Authority regarding investment fraud and better supervision. We have appointed an IDA group so that the departments, in cooperation with one another, shall counteract crime. We also meet with telecommunications operators and banks and set requirements.

New EU regulations, which we are participating in negotiating, are coming that go harder against crime. We are also developing the anti-money laundering supervision. Proposals have been made to have requirements for permits and a ban on informal hawala, which is largely used by criminals. The previous government and the Social Democrats did not take the measures that were needed there.

This is how we can continue, area by area. It is one thing to be cocky in a speaker's chair or to pose sternly in a picture on social media and pretend that one wants to fight crime. But in reality, we know what the situation is with the Socialdemokraterna. Then Daniel Helldén and Miljöpartiet shall have free hippie play in the justice system again.

I will do everything to ensure that it does not happen that way.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Marie Olsson (S)

Mr. Speaker! I am surprised by the level of this debate, I must say. But perhaps I should not be.

The lottery is the minister's main talking point; I have understood that for a long time. I am not downplaying it. On the other hand, I am focusing on what I have submitted an interpellation about, and that is actually VAT fraud. It is not lotteries and telephone sales. It is VAT fraud that I have posed a question to the minister about. I wish that the minister could also stick to that subject.

We can then return to the subject that we are actually going to talk about. The European Public Prosecutor's Office, EPPO, struck this winter against a large organization in Europe suspected of having earned over 5 billion euros, equivalent to approximately 55 billion Swedish kronor, through similar VAT frauds that are now occurring in Sweden. In this case, it was in Italy, Spain, Bulgaria, and Croatia. A total of 200 people and 400 companies are now being investigated in this affair.

In this case, it has been shown that there are links to known mafia families, mafia clans. This leads to the conclusion that the VAT frauds in Sweden also feed the gang crime in Sweden. That is why it is so important to stop them.

I can once again state that the SD government has had 16 months to take measures against fraud that costs the state billions and which fuels crime and gang crime in our society. Only now do we see that a bill is coming – in December this year, 20 months after the report was completed.

Since the minister has the final word, I have a sincere hope that the minister will stick to the subject and that the government views this economic crime as acute and quickly takes decisive measures in this area so that we can stop the outflow of our common tax funds to criminals and gang criminals. A prerequisite, in order to stop this, is also to introduce a Swedish mafia legislation.

(Applause)

The speech at riksdagen.se, in Swedish (opens in a new tab)

Finansmarknadsministern Niklas Wykman (M)

Mr. Speaker! It was an applause – not as in the indefinite article "a", but as in the counting word "one". I do not think it impresses the Swedish people that the justice system was mismanaged for such a long time.

One can talk about mafia legislation, pose on social media, or say tough things. In reality, we know that the Social Democrats sat and sit in the lap of the Left Party and the Green Party, where there are no measures against criminals.

This government is coming up with measure after measure. That is why it is important to see them collectively. When it comes to the VAT fraud, the previous government did not take those measures during its eight years in power.

The interpellator now notes that the legislative proposals against this are coming. That is very good. We must not have VAT fraud. All types of cheating and fraud must be combated. It can be argued that VAT fraud is particularly serious because one steals others' paid tax money. It is indecent, and it must be combated. But economic crime and criminality must be combated collectively. This must, of course, be done with new and better tools in the VAT area, where we take measures that the previous government did not.

But this must also be combated by pushing back against all crime. That is why we are introducing stricter penalties, providing more resources to the justice system and building new prison sites. That is why we are giving new mandates to a number of agencies. That is why we are starting a financial intelligence center where we let many agencies, including the police, cooperate with one another. That is why we have tightened the requirements on the banks. That is why we do not like trickery via telephone. That is why we have taken measures against hawala. That is why we intend to take measures regarding cash exports from the country. In area after area where you were passive, we are active, because we are going to win back the security.

(Applause)

The interpellation debate was hereby concluded.

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