According to Hyrlett’s website, the employees of this Latvian company earn between 80 and 130 Swedish kronor after tax. This information has now rendered the company a hefty bill from the Swedish Tax Agency for unpaid of payroll taxes and withholding of preliminary taxes amounting to a total of 6 million Swedish kronor.
The Swedish Tax Agency (Skatteverket) has audited Sia Hyrlett Nu for the years 2010 and 2011, and establishes that Hyrlett only has operations in Sweden. One of the owners, Maris Sergejenko, lives in Sweden and has done so since 2002. In the eyes of the tax agency this makes Hyrlett a company with a so-called permanent establishment in Sweden, and not a visiting foreign company. Hence, the company should keep its books and pay its social security contributions and taxes here.
Maidbook
During the audit the tax agency also happened upon the Swedish company Maidbook AB, a company that Maris Sergejenko co-owns and runs with his common-law husband. Hyrlett leases staff to Maidbook which in turn leases them out here in Sweden. During the investigation it emerged that Sergejenko’s partner also played a leading role in Hyrlett. Management and administration of both Hyrlett and Maidbook has been performed by the same people.
No data
During 2010 and 2011, Hyrlett did not paid any payroll tax, and further failed to submit both tax information, and preliminary tax. Despite several reminders during the audit, the Swedish Tax Agency did not receive any information from Hyrlett about employees names, numbers, or length of service. The ruling from the agency is instead based on, among other things, particulars from some of Hyrlett’s customers (Leroy Stockholm AB, AO Ekman AB, Quality Fish, AB Fromax, Nordic FX Fiber Optic Wind The designer Construction AB, Swedish Infrastructure Ltd, Mälardalen Building & Land Technology AB, Swedish Medical Qigong AB, Smögen Household Service AB, Hamnkrogen Maritime AB) and a number of private clients. They have all hired Latvian labor at very low cost. And this, as it turns out, from a company that has not managed its taxes.
Takes everything
The Swedish Tax Agency has made a thorough investigation and searched both Latvian and Swedish internet sites for information. Hyrlett’s information on work force wages found on the company website was used as baseline for the agency’s calculations of payroll and preliminary tax for employees.
Hyrlett is now obliged to pay over 6 million kronor to the Swedish State. And, as the tax agency concludes, when the fines have been paid, Hyrlett, will have no profit to pay corporation taxes on. The Tax Agency therefore sets Hyrlett’s profit to zero for both years.
Low salary
Stoppafusket has previously, on several occasions, written about both Maidbook and Hyrlett. Among other things we have gone through Hyrlett’s Latvian annual reports and demonstrated that the salary corresponds to the Latvian minimum wage (currently SEK 15 per hour) and that workers get a tax-free overseas allowance of approximately 360 Swedish kronor per day. This is a case of the classic Latvian “cheating” method where extremely low wages are seasoned with tax-free travel allowance. However, the Swedish Tax Agency does not consider Hyrlett to be a visiting foreign company, but a business with a permanent establishment in Sweden. All remunerations paid are therefore taxable.
Anna-Lena Norberg
Translation: C-line Productions
In Latvia the company Eurochance is more well known than Hyrlett. Both companies have the same owners.
