Common sense at the Swedish Tax Agency: Transactional boundaries that separate taxable and tax-free income

How does a tax collecting agency distinguish between taxable and tax-free income when the law says that all that all exchanges having value, regardless of compensation mode, are seen to constitute income? ‘‘By using our common sense’’ proposed one of the Swedish Tax Agency’s legal experts. Common sense is here used as a frame for the boundary work that the Agency engage in-based on legislation, courtroom decisions, and praxis-while it pays attention to what Swedish taxpayers see as legitimate to tax. Six transactional boundaries are proposed that in different constellations distinguish the taxable trade from a helping hand. The analysis is based on an ethnography of publicly available documentation, rules, and regulations regarding income tax at the Agency’s website. An ethnographic approach to these documents that are available to all taxpayers represents an apprehension of, and empathy for, the analytical concerns of both Agency and taxpayers. These documents represent the Agency as a collective of voices with a diligent aim to convey the same message for all taxpayers. 2015 Elsevier Ltd. All rights reserved. * Tel.: +46 13 28 6656. E-mail address: [email protected] 1 As a curiosum, the organization that represents the primary outspoken critics of high tax levels in Sweden, Skattebetalarna, publishes a magazine (eight yearly issues) for its members named Sunt förnuft. I doubt that the intention of the legal expert was to refer to this title. 2 Other employees found the issue important and agreed on the room for interpretation. There was also one suggestion that the question might be better left alone.