In cases in which payroll withholding tax is not paid on time, interest on overdue payment will be charged.
If payroll withholding tax and employer’s National Insurance contributions are not paid by the stipulated deadline, it will be considered whether to initiate distraint proceedings in order to establish a charge on the employer’s assets, including amounts outstanding from clients. The authorities abroad also assist the Norwegian authorities in connection with the collection of unpaid tax.
Failure to deduct statutory withholding tax and effect settlement will result in the employer being held liable, see the Tax Payment Act section 16-20 (1) and (2). This means that the employer must himself/herself pay the withholding tax that should have been deducted from the employee’s pay. When an employee is placed at the disposal of others (hired out), obligations and responsibility pursuant to the Tax Payment Act will also apply to the client hiring the employee in Norway. This means that the Norwegian client will be held liable for any failure on the part of the employer to pay payroll withholding tax and employer’s National Insurance contributions, cf. the Tax Payment Act section 4-1 (2) and (3).
Failure to deduct withholding tax from wage payments, to pay the withholding tax deducted in accordance with the regulations and to submit settlement lists for withholding tax may also result in criminal liability pursuant to the Tax Payment Act sections 18-1 and 18-2.
Pursuant to the Tax Assessment Act section 10-8, cf. Regulations no. 57 of 22 January 1991, a charge can be imposed on persons who are obliged to submit End of Year Certificate if the certificates are not submitted, are submitted too late or are deficient.