Who can have an enforcement fine imposed on them?
All enterprises which are obliged to submit information concerning either their own circumstances or those of others may be subject to an enforcement fine if they fail to provide the necessary information. An enforcement fine is the main penalty imposed on third parties that fail to submit mandatory information.
Salary recipients and pensioners who can submit a pre-completed tax return cannot be subject to an enforcement fine.
The purpose of the enforcement fine is to provide an incentive to comply. In other words, to encourage the submission of mandatory information before the set deadlines.
When might an enforcement fine be imposed?
In the event of non-submission or obvious errors in
- third party information (underlying data)
- shareholder register statements
- tax returns for self-employed persons
- tax returns for VAT
Enforcement fines may also be imposed if the enterprise fails to comply with bookkeeping orders or fails to provide information which we have requested in an audit.
What you must do
The Norwegian Tax Administration sends out warnings and decision notifications in the same letter. The letter will state what you must do in order to avoid having to pay the enforcement fine.
You will generally not have to pay the enforcement fine if you submit the information we have requested by a new date stated in the letter. If you do not submit the information by the new date, you will receive an invoice from the Norwegian Tax Administration.
If an enforcement fine is imposed on you, you will have to pay a daily accruing penalty until
- you submit the information we have requested
- The Norwegian Tax Administration will determine the basis for the fine either through a discretionary assessment or when
- the maximum limit for enforcement fines has been reached
How much will I have to pay?
- In the case of tax returns (formerly the tax return and turnover statement), the rate is half a court fee per day. In 2017, the court fee is NOK 1,049 per day. The maximum limit is 50 court fees. The maximum amount payable is therefore NOK 52,450.
- In the case of third party information, the rate is one court fee per day. The maximum amount is NOK 52,450.
- In the case of a bookkeeping order, the rate is one court fee per day. The maximum amount is NOK 1 million.
In special cases, enforcement fines may be set either lower or higher.
Tax returns cover wealth and income tax, value added tax, excise duties and deduction notifications.
Third party information covers virtually all other reporting, e.g. shareholder register statements, information concerning jointly owned housing property, information concerning the minding and care of children, data concerning mutual funds and deposits, loans and interest.
Appealing against enforcement fines
The party on which an enforcement fine is imposed can appeal against the decision within six weeks.
You must pay the enforcement fine even if you wish to appeal. If your appeal is upheld, you will get the money back.
Requirements for appeals:
If the enforcement fine is upheld by the tax office, the appeal will be referred to the Directorate of Taxes as the appeal body.