The Swedish Tax Agency raised objections regarding the Swedish Napropathic Association's payment of scholarships to napropaths pursuing doctoral studies. Because the association was deemed to have a commercial interest in the research results, the agency argued that these payments should be classified as employment income, meaning the Swedish Napropathic Association would be liable for employer contributions and the doctoral student would be required to pay income tax on the amount received.
The Swedish Napropathic Association found it unreasonable that the relationship between the association and the doctoral student should be classified as employment simply because the association has an interest in medical research. Consequently, in 2013, the association worked with Ernst & Young to challenge the Swedish Tax Agency’s interpretation of tax legislation. As the parties could not reach an agreement, the case was referred to the Administrative Court at the beginning of 2014.
In mid-December 2015, the Administrative Court issued its ruling, in which it upheld the association's arguments. The Swedish Tax Agency had two months to appeal the decision but chose not to do so.
In practice, this means that 100% of the funds paid out by the Swedish Napropathic Association to doctoral students will go directly to the students in question. With these clearer guidelines, we can now continue our vital research work, which naturally means a great deal to the current doctoral students, the napropathic community, and, not least, our patients and Swedish public health!
Henrik Gadde
Licensed Napropath
Treasurer, Swedish Napropathic Association