Government will tighten exit tax rules. Prosecutors questioned whether the plans breached EEA rules.
– It comes as a surprise when you have an ambiguous situation regarding the EEA rules, says Cecile Amdahl, lawyer and partner at Schjødt.
He is one of many lawyers reacting to the government's new plans for changes to the transfer tax, known as the “exit tax”.
Amthall is particularly disappointed that you “don't think about the latest developments in Germany” when you look at what rules apply in the country.
He was referring to a recent ruling by the German court Bundesfinanzhof, published in January. Law firm mentioned The ruling at the time, and the decision temporarily halted the tightening of regulations for moves within the EU/EEA.
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The government's exit tax looks brutal
– We have made an assessment applied to Norwegian conditions. The ruling applies in Germany from the beginning of this year, so there may be nuances and rules different from Norway. But we understand that the decision in that judgment would apply if similar provisions were made in Norway.
After adaptations made after the Wächtler case, Amdahl believes the government's proposal is more similar to the rules in Germany. It was about moving from Germany to Switzerland, and the previous German rules were rejected by the EU Court of Justice.
Tenure is 12 years
The rule changes proposed by the government mean that transfer tax on shares and similar assets must be paid within 12 years.
From November 2022, there is a so-called exit tax, but in practice the payment can be deferred indefinitely.
When you leave the country, the government will calculate how much tax you should have paid on your profits in Norway. The time limit applies irrespective of whether the gain is realized in the form of dividend or sale or not.
– The government wants to ensure that values accumulated while living in Norway are actually taxed and paid here. Trust in both the tax system and society is fair and important, said Finance Minister Trygve Slacksvold Vadham (SP) when the rule changes were presented.
Finance Ministry:- Will do well
State Secretary Erlend Grimstad (SP) responded in an email that their proposal for changes was based on the new German rules and not the old rules rejected by the EU Court of Justice.
– We believe that the proposal for the new Norwegian rules will stand up well, says Grimstad.
– This proposal is based on the well-established principle that each country is entitled to tax values arising during the owner's residence in the country. The Secretary of State adds that the proposals preserve and balance the central considerations underlying EU and EFTA courts when assessing such provisions.
Grimstad also points out that the German government, in its response to the German parliament, “confirmed that there will be no changes to the new German rules following the Wächtler decision.”
– Hits everyone anyway
Amdahl at Schjødt is one of several lawyers who have raised doubts about whether the government's proposal violates EEA rules.
Harald Hage, a tax lawyer in Wickborg Rain, pointed this out to E24 after the proposals became known.
At the same time, he believed the new plans were dramatic and unnecessarily invasive. Among other things, Haj pointed out that they affect many people in different situations, for example students abroad and pensioners.
Amdal points out the same.
– It affects everyone regardless. In family firms, there are often no plans to sell. People move abroad for reasons other than tax. It could be study, work or a partner abroad.
He also questions what the new rules can achieve compared to the old rules.
– The problem is that you have to pay tax when you don't sell. What you have to achieve is that you have to pay anyway. Then you are forced to realize, or finance the tax in other ways.
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