Judgement regarding tax treatment of temporary buildings

The Tax Board decided that modules owned by Expandia Moduluthyrning AB and being let to different customers in need of temporary buildings should be treated by Expandia Moduluthyrning AB as “buildings” and not as equipment when calculating the yearly depreciations for tax purposes.

The Tax Board consequently raised the company’s taxable income for 2005 with 23 million SEK. However, after the company appealed the decision by the Tax Board, both the County Administrative Court and the Administrative Court of Appeal decided that the legal definition for tax purpose of “buildings” should be decided according to civil law.

Considering also the construction of the modules. the terms for use and rental agreements, the Courts agreed that the modules should not be treated as “buildings” for tax purposes.

Expandia Moduluthyrning AB was represented by Carl Ekberg, Moll Wendén (Case 3316-08)