Tax return

Organisations that have taxable income or assets must submit a tax return via your own accounting system. If no tax return is submitted, income and assets will be assessed on a discretionary basis, the organisation will not be able to amend the assessment unless it appeals, and the organisation must expect additional tax to be imposed.

The employer’s responsibility

Organisations will to a greater or lesser extent act in the capacity of being an employer. These organisations will thereby be subject to obligations under the A-opplysning Act, the Tax Payment Act, the Tax Administration Act and the National Insurance Act. The organisation is responsible for complying with these provisions.

Financial liability

Employers are liable for deducting withholding tax from all benefits that are subject to withholding tax. Failing to deduct tax could result in the organisation having to pay the tax deduction as the employer. The same liability applies when tax has been deducted, but not paid. If members of the management team of an organisation (employer), i.e. the general manager and the board of directors, fail to comply with the rules concerning the implementation, treatment and settlement of withholding tax deductions, either wilfully or through negligence, they may be held personally financially liable. 

Employer's national insurance contributions must be calculated, declared and paid by the due date by the employer themselves. Compared to withholding tax deductions, this settlement will be more similar to an ordinary payment obligation in terms of its nature.

Criminal liability

Failure to comply with the provisions of the Tax Payment Act concerning withholding tax deductions could result in criminal liability being incurred, see Chapter 18 of the Tax Payment Act. Any unlawful appropriation of tax deductions may also fall under the provisions of the Criminal Code concerning embezzlement. Within organisations, this criminal liability could be asserted against the general management and the members of the board of directors.

Providing or aiding and abetting the provision of inaccurate or incomplete information concerning employer's national insurance contributions to the tax authorities may entail criminal liability. The same applies to any failure to provide mandatory information. Failure to comply with the regulations concerning the provision of salary information and tax returns may entail criminal liability under the Tax Administration Act provided that the organisation has taxable income and assets.