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Fnatic fined over one million SEK for not paying payroll taxes

Olivia R. September 10, 2019

Fnatic is in trouble with the Swedish Tax Agency. 

The European organization has been fined for over one million SEK after not paying payroll taxes in 2016 and 2017. Fnatic was found guilty of not properly paying employer contributions and tax surcharges after asking to not only be exempt from the fines but also reimbursed for agency costs in their appeal.

Fnatic first came under fire when some players in the organization stated that their payroll fees were being paid by the esports organzation on their tax declarations. 

In response, Fnatic claimed that it was their players' responsibilities to pay the correct taxes. But the Swedish Tax Agency didn't seem convinced by this explanation, stating that the players weren't cleared for "F-skatt," which would have put the players in charge of paying their own taxes every month. 

As a result, the Swedish Tax Agency had not received taxes from Fnatic for two years. 

“The administrative court initially notes that it is indisputable that the [wage] recipients have been subject to Swedish social security and that they have not been approved for F-tax (self-employment tax) during the time periods brought up in the cases. It is further indisputable that the company has paid salaries to the recipients," reads a translation of the verdict.

One million SEK is equal to a little over $103,500 USD. That is equal to one year of unpaid taxes. 

Fnatic has two months to appeal the court's decision, according to a Swedish publication. The organization has yet to either appeal or accept the fine. 

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