Believes this will stop tax evasion

More than 40 Norwegians with strong capital have moved from Norway to Switzerland recently. For many, the cup is full after years of gradual increases in the tax burden, says tax expert Eivind Furuseth at BI.

– The wealth tax in particular means that they have to take money out of their companies to pay their private tax. I think many of them don’t want to do that, he says to TV 2 in the program Norwegian conditions.

Has it gone so far that people have to borrow money to pay their wealth tax?

– Yes, I absolutely think so.

– Must tap the companies

He says that the challenge with wealth tax is that it is not determined on the basis of income, but on the basis of value.

– If I have large values ​​in shares, it is not a given that I have the money to pay the tax bill. So then I either have to borrow money, or take money out of the company, he explains.

He is supported by Nettavisen’s editor-in-chief, Gunnar Stavrum.

– They feel they have to drain the companies of capital in order to get money to pay wealth tax. In the long term, it destroys the growth opportunities for their companies, and then it is quite easy to move to Switzerland and avoid wealth tax, says Stavrum in the programme.

I think Norway is losing out on politics

Furuseth believes that the current tax policy will turn out badly for Norway in the long term.

– If you take the money out of the company, the company will have less value for value creation, which in turn creates jobs, which in turn creates future increased tax revenues. So I think Norway will lose out on this in the long term.

He is afraid that it is not only the riches that are moving, but also the value creation.

– If an entrepreneur moves out because you don’t have the conscience to burden the company with your private tax bill, I am afraid that the value creation will take place abroad, for example Switzerland, and not in Norway, in the future, he says.

According to Furuseth, the tax policy means that the business community here at home also experiences a certain mistrust from foreign investors.

Some of them hold back because of what they believe are unpredictable framework conditions in Norwegian business, he says.

– For foreigners, predictability is very important, so I think that for foreigners who want to invest in Norway, the constant change in the tax rules can be of great importance.

Don’t feel sorry for them

Stavrum understands that many people react to tax evasion.

– Those who can’t afford it can probably think that this is whining from people who have so much money, he says, and emphasizes that he doesn’t feel sorry for those who move either.

– But we don’t have to be so stupid that we shoot ourselves in the foot when we create a tax system.

Furuseth believes that much of the dissatisfaction with those who are leaving Norway now is connected to the fact that many do not understand how wealth tax works.

– I think the vast majority of rich people in Norway, and those who have moved abroad, think it is perfectly fine to pay taxes to Norway. But then there is something about the fact that the tax burden must not be too high.

I think changes are needed

He believes it is natural that the rich should pay more tax than people with a low income, and points to the tax committee’s recommendation as a possible solution going forward. The committee presented its report in December.

– If the wealth tax were to be changed now, the tax committee proposes to reduce the wealth tax and instead introduce an inheritance tax.

Furuseth will also make it more attractive to stay in Norway.

– If Norway needs the tax revenue we collect via wealth tax, the tax could have been distributed in a different way. For example, by taxing the companies higher, he says.

I don’t think they will come back

What do you think it will take to get the rich back to Norway, or at least stop the flight?

– I think it is difficult to get the riches back to Norway. Once you have moved out, the threshold for moving back is very high, says Furuseth.

He believes that changes are needed for tax evasion to decrease.

– I think we should change the tax rules in Norway quite quickly, so that it remains attractive to do business in Norway, to drive value creation and create jobs in Norway, he concludes.

You can get the Norwegian state of affairs program on TV 2 Nyheter every Thursday at 17.30 and on TV 2 Play at any time.