{"id":150484,"date":"2026-10-12T11:27:54","date_gmt":"2026-10-12T11:27:54","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=150484"},"modified":"2026-10-12T12:10:59","modified_gmt":"2026-10-12T12:10:59","slug":"norway-tax-disputes","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/norway-tax-disputes\/","title":{"rendered":"Norway: Tax Disputes"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-150484","comparative_guide","type-comparative_guide","status-publish","hentry","guides-tax-disputes","jurisdictions-norway"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">BAHR<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/07\/bahr_logo_sort_RGB-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">BAHR<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/07\/bahr_logo_sort_RGB-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Tax Disputes laws and regulations applicable in Norway<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it necessary for a taxpayer to register with the tax authority? Are separate registrations required for corporate income tax and value added tax\/sales tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign personal taxpayers working in Norway must register with the Norwegian tax authorities by applying for a tax deduction card (an electronic document showing how much tax the employer must deduct before paying the salary).<\/p>\n<p>All Norwegian enterprises and foreign enterprises conducting business activities in Norway must be registered in the Norwegian Register of Business Enterprises (Nw. Foretaksregisteret) regardless of any tax liability. However, no separate registrations \u2013 with the below exception for VAT registration \u2013 are required with the tax authorities for these types of taxpayers. Of course, taxpayers (resident or not) must submit tax returns declaring any income taxable in Norway.<\/p>\n<p>Upon sale of vatable goods or services for more than NOK 50,000 within a 12-month period, registration with the Norwegian VAT register is required. Norwegian VAT legislation also allows for certain types of registration in the VAT Register in certain other cases. These include joint registration for collaborating companies (VAT group), voluntary registration for certain activities which are normally exempt from VAT, or pre-registration in two types of cases; a) if a significant taxable turnover is expected within a short period, or b) if an enterprise will have significant investments (i.e. exceeding NOK 250 000) in an investment period of at least four months prior to startup of its first sales activities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In general terms, when a taxpayer files a tax return, does the tax authority check it and issue a tax assessment, or is there a self-assessment system where the taxpayer\u2019s own assessment stands unless the tax authority intervenes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Norwegian tax system generally relies on a self-assessment principle, where the taxpayer must provide the correct and complete facts and assess the correct tax payable. The self-assessment stands unless challenged by the tax authorities.<\/p>\n<p>In practice, the Norwegian Tax Administration pre-populates the annual tax return for personal taxpayers based on information reported by third parties, such as employers, banks, and financial institutions. The taxpayer is responsible for reviewing the pre-populated return and correcting or supplementing any information that is missing or incorrect before the filing deadline. Failure to do so may result in the self-assessment being treated as incorrect, potentially triggering penalty tax. For corporate taxpayers, the return is not pre-populated to the same extent, and the enterprise is responsible for completing and submitting a full tax return.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a taxpayer amend their return after it has been filed? If so, are there any time limits for doing so?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Taxpayers can, as a main rule, amend information in previously filed tax returns within a three-year period after the deadline for the tax return. Such amendments are, however, not allowed where the tax authorities have notified that the tax assessment is under review or where a reassessment by the tax authorities has been carried out.<\/p>\n<p>In addition to the taxpayer\u2019s own right to amend, the taxpayer may request the tax authorities to amend the tax assessment for up to five years back. Under this five-year rule, the tax authorities have a discretionary power to decide whether to reopen and amend the assessment. The request must be submitted in writing and should include relevant documentation supporting the amendment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please summarise the main methods by which a tax authority may challenge the amount of tax a taxpayer has paid by way of an initial assessment\/self-assessment. Does the tax authority need any justification to commence such a challenge?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax authorities may challenge the position of the taxpayer in the annual tax return. The audit process is generally automated, but based on certain risk criteria. For large enterprises (including E&amp;P companies), there are specialised departments within the tax authorities that carry out a thorough and systematic control of the tax returns.<\/p>\n<p>The process is typically initiated by an audit followed by a notice of reassessment and a reassessment decision thereafter. The audit may be initiated based on automated risk assessments, tips, information received from foreign tax authorities, or as part of a broader sector-specific control. In practice, the tax authorities will often request extensive documentation and written explanations from the taxpayer during the audit phase. Taxpayers are generally given a reasonable deadline to respond, and extensions may be granted upon request.<\/p>\n<p>In the notice of reassessment, the tax authorities will inform the taxpayer of the factual and legal grounds relied on. Thereafter, the taxpayer is given the opportunity to submit comments and objections. The period leading up to the reassessment decision can be lengthy, and it is not uncommon that the tax authorities demand detailed information and documentation from the taxpayer.<\/p>\n<p>The tax authorities do not need any justification to commence an audit. However, the tax authorities shall consider whether there are grounds for a reassessment, considering, among other things, the taxpayer&#8217;s circumstances (e.g. information provided, the degree of guilt etc.), the time elapsed, the significance of the issue, and the evidence situation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the time limits for a tax authority to commence a challenge to the taxpayer\u2019s assessment\/self-assessment (disregarding any override of these limits to comply with obligations to provide relief from double taxation under a tax treaty)? Does a tax authority have any options to challenge a self-assessment after expiry of the relevant time limit?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The general deadline to challenge a taxpayer\u2019s self-assessment is five years. In grave cases of failure to provide (correct) information (where the taxpayer is subject to increased penalty tax or is reported to the police for tax fraud), the deadline is extended to ten years. After expiry of the relevant time limit, the self-assessment cannot be challenged.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud defined under the laws of your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Simple tax fraud is defined in the Norwegian penal code as anyone who intentionally or by gross negligence provides incorrect or incomplete information to a public authority, or fails to provide required information, when they realise or ought to realise that it may lead to tax advantages.<\/p>\n<p>Whether the tax fraud is simple or gross is based on an overall assessment, in particular whether the conduct in question (a) led to or may have led to the evasion of a considerable amount, (b) was perpetrated in a manner which has, to a significant degree, made it difficult to discover, (c) was committed on multiple occasions or over an extended period of time, (d) was committed by multiple persons acting together or shows signs of planning or organisation, (e) was perpetrated by abusing a position or relationship of trust, or (f) was contributed to in the conduct of a business. In determining whether the tax fraud is gross, multiple violations can be considered together.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud treated? Will the tax authority conduct a criminal investigation with a view to seeking prosecution and a custodial sentence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Tax fraud can either be subject to criminal charges or penalty tax (a civil sanction under Norwegian law, but a criminal charge pursuant to the European Convention on Human Rights). See question 26 for further information on the penalty tax.<\/p>\n<p>Criminal charges are investigated by the Norwegian prosecuting authority (typically after the matter has been reported by the tax authorities).<\/p>\n<p>Simple tax fraud is punishable by a fine or imprisonment for a term of up to two years. Gross tax fraud is punishable by a fine or imprisonment for a term of up to six years. Grossly negligent tax fraud is treated with a penalty of a fine or imprisonment for a term of up to one year. If the grossly negligent tax fraud is deemed to be aggravated, imprisonment for a term of up to six years may be applied.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have to abide by any standards or a code of conduct when carrying out audits? Does the tax authority publish any details of how it conducts audits in practice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax authorities must abide by the standards set out in the Tax Administration Act, which outlines general procedural rules for the tax authorities, as well as non-statutory principles for good administrative practice. Upon imposing penalty taxes, the tax authorities will also have to abide by certain principles in the European Convention on Human Rights.<\/p>\n<p>The tax authorities publish an annually updated handbook (the Tax Administration Handbook) which describes the authorities\u2019 standing and practices on the above-mentioned regulations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have the power to compel the production of information? Does this extend to emails? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Norwegian tax authorities hold the power to compulsory request information from taxpayers which may be relevant to the taxation or the audit of the taxpayer. This generally includes all information (in emails or otherwise) which is deemed relevant to the taxation or the audit of the taxpayer, including confidential information. The Norwegian Supreme Court has ruled that correspondence with the taxpayer\u2019s attorneys is, as a main rule, exempt from the duty to disclose information to the tax authorities.<\/p>\n<p>If the taxpayer is of the opinion that the tax authorities do not have the right to access the information in question, the order may be appealed. While the appeal is being processed, the taxpayer is as a starting point obliged to share the information in question. A suspension should normally be granted when the complaint raises reasonable doubts about the legality of the order.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have the power to compel the production of information from third parties? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Norwegian tax authorities hold the power to compulsorily request a wide and specified range of information from third parties which may be relevant to the taxation of a taxpayer. This includes e.g. information on money transfers, deposits and debt.<\/p>\n<p>If the third party is of the opinion that the tax authorities do not have the right to access the information in question, the request may be appealed. While the appeal is being processed, the third party is as a starting point obliged to share the information in question. A suspension should normally be granted when the complaint raises reasonable doubts about the legality of the order.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to settle an audit by way of a binding agreement, i.e. without litigation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No, it is not possible to settle an audit by way of a binding agreement. However, taxpayers may request a binding tax ruling (Nw. bindende forh\u00e5ndsuttalelse) regarding the tax consequences of a planned transaction that has not yet been initiated (i.e. long before an audit is initiated). A binding tax ruling is binding on the tax authorities, provided that the transaction is carried out in accordance with the description set out in the ruling request. The ruling process is subject to a fee and is generally handled within a period of three months. Binding tax rulings are an important tool for taxpayers seeking certainty in advance of significant transactions, but they do not provide a mechanism for resolving existing disputes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer is concerned about how they are being treated, or the speed at which an audit is being conducted, do they have any remedies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If a taxpayer is of the opinion that an audit is in breach of any statutory or non-statutory procedural rights, it is possible to file a complaint to the Parliamentary Ombud for Scrutiny of the Public Administration.<\/p>\n<p>If an audit is lengthy, it may also result in the tax authorities losing their right to reassess, either because the time limit for giving a notice of reassessment is passed (see question 5 above) or due to non-statutory principles of passivity.<br \/>\nFurther, if penalty tax is invoked, a lengthy process might entitle the taxpayer to a reduction of the penalty tax amount, see question 27.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer disagrees with a tax assessment, do they have a right of appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, a taxpayer may appeal a reassessment decision to the Tax Appeal Board.<\/p>\n<p>The validity of an appeal decision from the Tax Appeal Board may be challenged before the courts. Alternatively, the taxpayer may challenge the validity of the reassessment from the tax authorities directly before the courts (i.e. skip the appeal to the Tax Appeal Board).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the right of appeal to an administrative body (independent or otherwise) or to a judicial body (i.e. a tribunal or court)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The taxpayer can appeal a reassessment decision to the Tax Appeal Board (Nw. Skatteklagenemnda), which is an independent administrative appeal body (i.e. cannot be instructed by any level of the government).<\/p>\n<p>The Tax Appeal Board consists of a chairman, a deputy chairman, and a number of ordinary members appointed by the Ministry of Finance. Members serve in a personal capacity and are required to have legal or accounting expertise. Cases before the Tax Appeal Board are typically decided by a panel of three or five members, depending on the complexity and significance of the case.<\/p>\n<p>The Tax Appeal Board has its own secretariat consisting of case handlers who prepares a written case summary and a recommendation, which forms the basis for the panel&#8217;s deliberations. The taxpayer may submit written comments to the secretariat&#8217;s recommendation before the case is decided. In practice, a significant proportion of the Tax Appeal Board&#8217;s decisions follow the secretariat&#8217;s recommendation, though the panel is fully independent and may deviate from it.<\/p>\n<p>Alternatively, the taxpayer may challenge the validity of the reassessment from the tax authorities directly before the courts (i.e. skip the appeal to the Tax Appeal Board).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the hearing in public? Is the decision published? What other information about the appeal can be accessed by a third party\/the public?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The procedure before the Tax Appeal Board is not public.<\/p>\n<p>Many decisions are published, but in redacted form to keep the taxpayer anonymous. Published decisions are available through the Norwegian Tax Administration\u2019s online database, and they serve as an important source of guidance for taxpayers and advisers on the Tax Appeal Board\u2019s interpretation and application of tax law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the procedure mainly written or a combination of written and oral?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The appeal to the Tax Appeal Board is generally written, but the taxpayer may, in some instances, participate in a brief oral hearing. The chairman and deputy chairman of the Tax Appeal Board decide whether the taxpayer shall be allowed to meet before the Tax Appeal Board. A requirement is normally that the case concerns complex facts that may be easier to explain orally.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a document discovery process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no formal document discovery process before the Tax Appeal Board. However, the taxpayer has a general duty to provide correct and complete factual information of relevance for the case. The taxpayer has the right to present new evidence to the Tax Appeal Board. This right is much more limited when the case is brought before the courts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are witnesses called to give evidence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Witnesses may not be called to give evidence in person. However, the taxpayer is free to submit witness statements in writing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the burden of proof rest with the taxpayer on an appeal against an assessment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no formal burden of proof on the taxpayer. The Tax Appeal Board has a right and duty to try all sides of the case, applying the correct law on the (most likely) correct facts. Hence, it is not the reassessment decision from the tax authorities as such that is the subject matter for the Tax Appeal Board.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How long does an appeal usually take to conclude?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The appeal process in Norway is generally lengthy due to the limited resources of the Tax Appeal Board\u2019s secretariat. The Parliamentary Ombud for Scrutiny of the Public Administration has on numerous occasions asked the government to take measures, without significant improvements.<\/p>\n<p>A taxpayer should expect the process to last at least around two years from submission of an appeal to the conclusion of the appeal case. However, we regularly experience that the appeal process can take considerably longer than two years \u2013 particularly in complex cases. The process can also be swifter.<\/p>\n<p>Amongst areas of priority are appeals on binding tax rulings. Such appeals should be resolved within three months.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the taxpayer have to pay the assessment pending the outcome of the appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the taxpayer has to pay the assessment pending the outcome of the appeal. An exemption applies for penalty tax, where the taxpayer can postpone making the payment until the Tax Appeal Board has made a decision or the court has made a final ruling.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on who may conduct or appear in the appeal on behalf of the taxpayer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A taxpayer has the right to be assisted or represented by a representative (Nw. fullmektig) at all stages of the proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a cost-shifting system whereby the losing party pays the winning party\u2019s legal and professional costs of an appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The taxpayer may as a main rule claim its own legal expenses covered if the Tax Appeal Board rules in favour of the taxpayer and the legal expenses are substantial and necessary. The costs covered are only those incurred in the appeal process. The costs incurred up until the reassessment decision are instead treated as deductible business expenses (if the general requirements for such deductions are met).<\/p>\n<p>If the taxpayer does not win through in the Tax Appeal Board, there is no obligation to cover the tax authorities\u2019 expenses (the administrative appeal system is free of charge).<\/p>\n<p>If the case ends up in court, the \u201closer pays\u201d principle will as a main rule apply for the litigation costs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to use alternative forms of dispute resolution, such as voluntary mediation or binding arbitration? Are there any restrictions on when such alternative forms of dispute resolution may be pursued?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No, it is not possible to use alternative forms of dispute resolution such as voluntary mediation or binding arbitration. However, as mentioned above (question 14), the taxpayer may challenge the validity of the reassessment decision before the courts instead of appealing to the Tax Appeal Board. Alternatively, the taxpayer may later challenge the validity of the appeal decision from the Tax Appeal Board before the courts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a right of onward appeal? If so, what are the levels of onward appeal before the case reaches the highest appellate court?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is only one level in the administrative Tax Appeal Board. The taxpayer or the tax authorities may, however, challenge the validity of the appeal decision of the Tax Appeal Board before the courts. The District Court decision can be appealed to the Court of Appeal, and the Court of Appeal\u2019s decision can be appealed to the Supreme Court. However, very few cases are allowed to be heard by the Supreme Court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main penalties that can be applied when additional tax is charged? What are the minimum and maximum penalties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The general penalty tax is 20 per cent of the tax benefit that has or could have been achieved. The rate is fixed (no discretion by the tax authorities). However, the rate is reduced to 10 per cent if the incorrect information provided to the tax authorities is information that third parties were also required to provide to the tax authorities.<\/p>\n<p>An additional penalty tax of 20 or 40 per cent may be charged on top of the general 20 per cent penalty tax (in total 40 or 60 per cent) for taxpayers who intentionally or grossly negligently have provided incorrect or incomplete information to the tax authorities, or fail to provide required information, when the taxpayer understands or should understand that it may lead to tax advantages. The choice of rate is determined based on an assessment of the taxpayer\u2019s conduct (e.g. information provided and degree of guilt). The highest rate is reserved for severe cases where the evasion is planned, well-organised, and\/or systematic.<\/p>\n<p>As an alternative to penalty taxes, tax fraud may lead to criminal charges under the Norwegian penal code (see questions 6 and 7).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If penalties can be mitigated, what factors are taken into account?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If the duty to provide information is neglected, penalty tax will not be charged if the taxpayer\u2019s circumstances are deemed excusable.<\/p>\n<p>Exemptions also apply when:<\/p>\n<ul>\n<li>the failure to provide information is due to obvious errors in calculation or writing;<\/li>\n<li>when the seller fails to calculate VAT on ordinary booked sales, and it is proven that the buyer has a right to fully deduct the VAT applicable, or the buyer would have been entitled to VAT compensation;<\/li>\n<li>when the taxpayer amends its tax return with correct and complete information before an audit is initiated;<\/li>\n<li>when the penalty tax is below NOK 1,000; or<\/li>\n<li>when the taxpayer is deceased.<\/li>\n<\/ul>\n<p>If a reassessment decision levying penalty tax is not made within reasonable time, the penalty tax is reduced in the amount of one and a half times the standardised court fee (NOK 1,345 for 2026) per month starting from the time the notice of penalty tax is sent, until the case is settled. The reason is that penalty tax qualifies as a criminal charge under the European Convention on Human Rights (although a civil sanction under Norwegian law), giving the taxpayer a right to a decision within reasonable time.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Within your jurisdiction, what areas do you think are most likely to be subject to challenge over the next 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Norwegian tax authorities have a risk-based approach to audits. Large enterprises are generally subject to particularly thorough controls.<\/p>\n<p>Among sectors that are under strict scrutiny are the petroleum, hydro power, wind power and aquaculture industries. These sectors are all subject to a higher level of taxation, through special resource rent tax regimes. Strict control with shipping companies qualifying for the tonnage tax system is also an important focus for the Norwegian tax authorities.<\/p>\n<p>Our impression is that transfer pricing, taxation of dividends and distributions to shareholders, and the application of the interest deduction limitation rule are all prioritised subjects of the Norwegian tax authorities.<\/p>\n<p>Further, the first disputes following reassessment decisions applying the newly introduced resource rent tax rules for the aquaculture sector are on the rise. These reassessments will likely challenge both the taxpayers\u2019 interpretation of the new rules and raise a number of transfer pricing issues (as only part of the value chain is subject to the special tax).<\/p>\n<p>We also expect disputes following reassessment decisions based on the wind power production resource rent tax regime that entered into force 1 January 2024.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your opinion, are there any areas that taxpayers are currently finding particularly difficult to deal with when faced with a challenge by the tax authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In complex transfer pricing disputes, the taxpayers will often have difficulties convincing the tax authorities of what they believe are the legally relevant factual bases when applying the arm\u2019s length principle. Such disputes are even more challenging if the case is brought before the courts, as the tax authorities generally argue that they have discretionary authority to determine the arm&#8217;s length price with limited authority for the courts to control the assessment (provided that an arm\u2019s length adjustment in principle is allowed).<\/p>\n<p>In addition, taxpayers in the natural resource sectors \u2013 including petroleum, aquaculture, hydro power and wind power \u2013 are facing increasing complexity as the newly introduced or recently amended resource rent tax regimes raise new and untested legal questions. The interaction between the ordinary corporate income tax and the special resource rent tax can give rise to difficult issues regarding the allocation of income and expenses, particularly where only part of the value chain is subject to the special tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4080<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/150484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=150484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}