Peyman Kia avoids paying taxes for the espionage salary from Russia

Peyman Kia, 43, infiltrated Säpo and Must on behalf of Russia and received large sums of money.
The Tax Agency demanded that the mole pay taxes for the spying compensation.
Now the administrative court announces that he will not be released.

Peyman Kia is sentenced to life imprisonment for aggravated espionage and unauthorized position with a secret mission.

For several years, working in the most sensitive parts of the Security Police and the Military Intelligence and Security Service (Must), he was Russia’s spy. From the inside, he sold top secret documents to the Russian intelligence service GRU.

The Court of Appeal ruled that Peyman Kia received US dollars equivalent to approximately 1.2 million Swedish kronor. The spy admitted during the trial that he received $70,000, of which his younger brother Payam Kia received $10,000.

The Tax Agency’s requirements: Tax on money from the Russian state

After the verdict, the Tax Agency started an investigation and demanded that the spy be taxed for the Russian salary. Peyman Kia then retracted his confession and stated that neither he nor the little brother, who was sentenced to just over nine years in prison, had received a single crown.

Peyman Kia appealed the tax hit to the administrative court – which announced its verdict on Wednesday.

“In the opinion of the administrative court, the investigation provides clear support for Peyman Kia receiving $60,000 from the Russian state in 2017 for the secret information he provided. Likewise, the investigation provides clear support for the fact that he had large deposits in his accounts and handled at least SEK 382,500 in cash for which he did not declare.”

Do not need to tax for crimes against the security of the kingdom

The Administrative Court states that money from criminal activities should not, as a rule, be taxed, but instead forfeited, which did not happen in the spy case as the prosecutor did not include it in his appeal. You can, however, tax money that is part of a legal activity, for example money retained by companies through tax fraud.

As the GRU income is an illegal activity, Peyman Kia does not have to pay tax on the Russian reward, the administrative court decides. There are exceptions for when you can be taxed for illegal activities, but the court believes that a crime against Sweden’s security is not such an exception.

– The practice established by the Supreme Administrative Court does not give a clear answer on how to look at the current case from an income tax point of view. However, the court considers that the 1991 legal case is still a guide for the assessment. As the crime has not formed part of a legal activity, the income cannot be taxed, says Eva-Lotta Hedin, lawyer at the Administrative Court in Stockholm, in a comment.

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