In a major win for private-equity firms in Sweden in a battle over how to treat carried-interest income, Stockholm's administrative appeals court on Thursday ruled that Nordic Capital's local advisory firm, NC Advisory AB, doesn't have to pay retroactive additional taxes amounting to 702 million Swedish kroner ($107.6 million).

Nordic Capital is first of a number of private-equity firms that tax authorities in Sweden are charging with retroactive taxes and the case has been viewed as a pilot study in that the tax authorities are more or less driving the same argument against all of the private-equity firms it is investigating.