Page 5 A collective agreement under the provisions of § 2, para 2, may be concluded before the coming into force of this Act. If the trade-union tasks of an employee have ceased before the coming into force of this Act, § 4 shall not apply. The regulations according to § 5 shall not apply, if the result will be that forewarning and notification should have been given before the coming into force of this Act. This Act shall come into force on July 1, 1974. 1974-08-02/UB/uw SAF SVENSKA ARBETSGIVAREFÖRENINGEN Doc No 1529 THE ACT RELATING TO ALLOCATION TO WORK The following is hereby decreed: § 1 Limited companies, incorporated associations, and savings Companies, as referred to in the first paragraph, may, when estimating their net income from business or agricultural property, in accordance with the law relating to municipal taxation (1928:370) and the ordinance (1947:576) governing state income taxation, make deduction for sums which are allocated to the work environment fund. Deduction shall be made from income estimated from that source of income which relates to the company's principal field of business. This law does not apply to companies, which are not to be Allocation to the work environment fund shall be made with amounts which correspond to twenty per cent of the company's annual profit, but not however in excess of 70 million Sw Crs. The annual profit shall be estimated according to the provision s stated in 3, sub-paragraph two of the ordinance (1955:256) relating to investment funds for the equalisation of market fluctuations. To annual profits thus estimated shall be added amounts required for writing off and depreciation or group contributions over and above that which is acceptable for the assessment of income taxation. In the event that the annual profit, after the above mentioned adjustments, does not exceed 100 000 Sw Crs, allocation to the work environment fund is not prescribed. Should the fiscal year cover a shorter or a longer period than twelve months, the implementation of the foregoing paragraph shall be adjusted in accordance thereto. Should the company be assessed for two fiscal years, the annual profits for both fiscal years shall be added together and shall thereafter be adjusted with respect to the total length of both fiscal years. 2 § 3 The company shall deposit these moneys, which are to be allocated to the work environment fund in accordance with this law, stating the firm name and postal address, at the offices of the Riksbank. The moneys shall be deposited in special non-interest-bearing accounts (work environment accounts). The moneys shall be considered as having been paid on the day on which they reach the Riksbank. $4 Payment shall be made not later than the last day on which the company shall, according to the Tax Assessment Act (1956:623), submit its general income tax return for the fiscal year. Should it be the case that the company is not to be assessed in 1975, the company is nevertheless liable to make preliminary payment to the Riksbank not later than March 31, 1975 with sums, which equate to twenty per cent of that annual profit, calculated in accordance with § 2, which relates to that or those fiscal year or years with respect to which assessment was made in 1974. Should the company, on submitting its general tax returns for the 1976 assessment discover that allocation to the work environment fund should on the bases of the provisions contained in this law be made with a sum greater than that of the preliminary payment, the company shall make good the deficit not later than the day on which the tax returns are to be submitted. The company shall supply written particulars with respect to the estimate which forms the basis for the payment, to the County Administrative Board, not later than the day on which payment is to be made in accordance with foregoing paragraph, in that county in which the company is assessed for state income tax. These particulars shall be submitted on blanks issued by the Inland Revenue. The provisions contained in § 50 of the Tax Assessment Act (1956:623) with respect to tax returns shall have a similar application for particulars referred to herewith. The County Administrative Boards shall determine as soon as possible the amount of the sum with which payment shall be made. In the event that no decision is communicated relating to such a payment within two years of the end of that calender year in which the payment should have been made, it may be assumed that liability to make payment is determined in accordance with particulars which the company submitted in accordance with the second paragraph. In the event that the sum paid by the company has, according to the provisions stated in § 2, been under-estimated the County Administrative Board shall require that the company pay the difference between the two sums as soon as possible together with a rate of interest according to § 5, within the time laid down by County Administrative Boards. In the event that the amount paid in by the company is too great and if there exists no reason to assume that an increase in liability will occur as a result of changes in the company's tax assessment, the County Administrative Board shall order repayment of the excess amount together with interest according to § 5 second sub-paragraph. $5 3 For amounts which are to be paid in, in accordance with § 4 subparagraph four, the company shall be liable to pay interest at an annual rate of twelve per cent from and including the month after that in which payment should have been made according to § 4 sub-paragraph one, upto and including that month in which payment is made in accordance with the ruling of the County Administrative Board, not however in any circumstances for a period exceeding two years. The interest shall accrue to the Crown. For amounts which are repaid, in accordance with § 4 sub-paragraph four, interest shall be paid at a rate of seven per cent per annum from and including the month after that in which the payment was made, upto and including the month in which the ruling on repayment is announced. Interest shall not be paid for periods prior to April 1975. In the event that decisions, with respect to interest, in accordance with sub-paragraph one, are amended in such a way that interest should not have been paid or should have been paid at a lower rate if the amendment had been observed at the time the interest was estimated, a new estimate of interest shall be made and the excess interest repaid. §6 The Riksbank shall provide the company with proof of its payment to the work environment fund. Moreover the Riksbank shall supply details of payment to the County Administrative Boards and the Swedish Labour Market Board. With respect to such information the provisions stated in § 7 of the ordinance (1955:256) relating to investment funds for the equalisation of market fluctuations shall have a similar application in this context. This information shall contain details of the time on which payment is due. A register of all work environment fund accounts is to be maintained at the head-office of the Riksbank in Stockholm. § 7 With respect to payments made before July 1, 1974 the company shall be entitled to extra deduction in the next subsequent assessment for income tax at a rate of eleven per cent of the amount paid. Such deductions may also be made for payments made during the period July 1 September 30, 1974 at a rate of seven per cent and during the period October 1 rate of three per cent. December 31, 1974 at a In the event that extra deduction is granted, the local valuation panel shall inform the County Administrative Board thereof in writing. $ 8 His Majesty's Government or the Swedish Labour Market Board acting in accordance with an ordinance of His Majesty's Government, may on application from the company permit that moneys, which have been paid into the work environment account during the time and under such conditions in other respects as are determined thereby, may be used for expenditure on investments for work environment or which are intended to improve the conditions of employees in the company in other respects. If permission is to be granted the application must have the approval of a majority of employee representatives on the safety committee or the works council of the applicant company. In the event that there exists neither safety committee nor works council, the application shall be approved by the safety representative of the company in question or, where there are several such representatives, the chief safety representative. The decision as to whether moneys paid into work environment accounts may be utilized shall be reported to the company, the County Administrative Board and the Riksbank. In accordance with the account rendered by the company the Riksbank shall pay out the amount, in accordance with the decision, from the company's work environment account. When disbursement is made, earlier payments into the account shall be drawn on before later deposits. When five years have elapsed from the day on which payment into the work environment account was made the company shall on receiving notice from the Riksbank be entitled to obtain that amount which remains of this payment. If disbursement is made, according to the second and third subparagraphs the Riksbank, the Swedish Labour Market Board and the County Administrative Boards shall be advised accordingly. § 9 Where moneys, which have been allocated to the work environment fund, are used subject to permission being granted, the moneys do not constitute taxable income for the company. On the other hand, expenditure, in as much as it is financed with such moneys, may not be deducted as current operating expenditure for purposes of tax assessment. In the event that the moneys have been used for the acquisition of a facility for permanent use, only that portion of the outlay that is not covered by these moneys may be included for purposes of estimating deduction for depreciation as the acquisition cost for the facility. Should amounts be disbursed, which have been allocated to the work environment fund, in accordance with § 8 sub-paragraph three, the sums shall immediately be classified as taxable income and as being part of that source of income upon which allocation to the fund is based. |