Norwegian Court orders retroactive tax paybacks to ship owners

The Norwegian Supreme Court has decided in favour of shipping companies in the raging taxation dispute, after ruling that retroactive tax payments imposed over a decade were in breach of the country’s constitution.

In 2007 the retrospective taxes were ordered to be paid by ship owners from 1996 to 2006 following changes to the taxation scheme in Norway. The latest decision will see ship owners reimbursed a total of NOK 21 million (USD 183 million) that had previously been ordered by the then-Finance Minister.

The Supreme Court ruled that the transitional rules implemented by the Storting in 2007 were a contravention of section 97 in the constitution which seeks to limit the potential of retrospective legislation.

Norway Post reports that the Norwegian Ship Owners’ Association managing director Sturla Henriksen was delighted at the court’s decision. “We are relieved to hear the decision of the Supreme Court. The Supreme Court has today confirmed the protection of the Constitution against retrospective legislation. It is a decision of principle of great significance for the protection afforded to us all by the law. This judgement will help to re-establish confidence in Norway as an attractive and stable country for business to invest in,” said Henriksen. “We share the Government’s ambition to promote Norway as an attractive maritime host country. This judgement makes a positive contribution to the work of increasing maritime value creation in Norway.”

After gas and oil, the maritime industry is the largest in Norway, offering significant potential for future development and wealth generation.