NORWAY Law and Practice Contributed by: Thea Slethaug, Axel Bjørke, Sigbjørn Sørensen and Jarand Aarhus, Aider Legal
the police (see 6.3 Interaction Between Tax and Criminal Procedures ). • Information exchange: The Tax Administration co-operates with foreign tax authorities through exchange of information mechanisms. Serious cases of tax fraud are investigated by Økokrim, Norway’s specialised agency for economic crime, which has dedicated resources for complex tax fraud investigations. The Tax Administration Act provides a framework for administrative penalties ( tilleggsskatt ) in cases of incorrect or incomplete information: • Standard additional tax: 20% of the understated tax. • Enhanced additional tax: 40% where the taxpayer has deliberately or grossly negligently provided incorrect information. • Aggravated additional tax: 60% in the most serious cases of intentional evasion. Penalties may be reduced or waived where the tax - payer voluntarily corrects errors ( frivillig retting ). Administrative penalties are imposed by the Tax Administration. Decisions can be appealed to the Tax Appeals Board and ultimately to the courts. 6.2 Criminal Penalties Criminal penalties for tax fraud are primarily governed by the Penal Code ( straffeloven ) and the Tax Admin - istration Act: 6. Penalties and Sanctions 6.1 Tax Penalties • Ordinary tax fraud: Imprisonment of up to two years for intentionally or recklessly providing false information to the tax authorities. • Aggravated tax fraud: Imprisonment of up to six years where the offence is particularly serious, considering factors such as the amount involved, planning, and abuse of a professional position.
• Gross aggravated tax fraud: In exceptional cases involving very large amounts or organised crime, sentences above six years may be imposed. Criminal penalties may be imposed alongside admin - istrative penalties, but Norwegian law contains safe - guards against double punishment in line with the European Convention on Human Rights. 6.3 Interaction Between Tax and Criminal Procedures The Tax Administration has an obligation to report serious suspected tax fraud to the police. In prac - tice, cases involving large amounts of tax evasion, organised schemes or repeat offenders are routinely referred to the police or Økokrim for criminal investi - gation. 7. Administrative Co-Operation 7.1 Legal Framework for Administrative Co- Operation Multilateral Instruments Norway participates in the OECD/Council of Europe Multilateral Convention on Mutual Administrative Assistance in Tax Matters, which provides a compre - hensive framework for administrative co-operation, including exchange of information, simultaneous tax examinations, and assistance in tax collection. EU/EEA Framework As an EEA member (but not an EU member), Norway has implemented key EU Directives on administrative co-operation through the EEA Agreement, including provisions equivalent to the EU Directive on Adminis - trative Cooperation in relation to automatic exchange of information. Bilateral Treaties Norway’s bilateral tax treaties contain standard exchange of information articles. Many newer trea - ties follow the OECD Model Article 26, providing for exchange of information on request, spontaneous exchange and, in some cases, automatic exchange.
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