19 Oct 2018 17:44

Comment on tax arrangements in Sweden

SEB offers no products nor participates in structures whose sole purpose is to avoid taxes, says SEB in a commentary on Friday's media reports that the bank carried out financial transactions with the purpose of avoiding tax on dividends in Sweden.

SEB provides securities loans to our clients, primarily financial institutions such as fund, insurance and pension companies. Securities lending is an established and necessary part of the financial market in which SEB and other banks act to ensure a well functioning and efficient market.

Customers use securities loans for a variety of reasons, such as a way to increase returns, to assume a short position in the market or for financing reasons.

Does SEB participate in tax arrangements to reduce tax?

SEB has no customer relations, offers no products nor participates in structures whose sole purpose is to avoid taxation.

Securities loans occur continuously throughout the year. SEB’s securities lending activities have always been in accordance with applicable legislation, regulations and market practices. Transactions are reported in full transparency to the relevant authorities and all other stakeholders.

Laws and regulations change over time as does their application. This is also true of the expectations society places upon banks to understand clients’ business and the overall context in which we act. In line with this, we continuously update our routines, including for securities lending. We make clear demands to know our customers well and understand what the purpose of lending is. We continue to believe that our securities lending activities meet these expectations.