Fish farms have to pay taxes and levies that have been avoided by foreign companies
The Tax Administration states in press release that she has inspected nine East European companies that have been assigned jobs in the fishing industry following an interagency criminal investigation.
Nine fish farms in Northern Norway have to pay millions to avoid tax and employer contributions after the fish farm hired workers from Eastern European companies.
Contracts between companies from Eastern Europe and Norwegian fish farms were reported to the Tax Office as construction contracts, where the companies had sole responsibility for production.
However, according to branch director Odd Woxholt of the Tax Administration, the companies did not execute construction orders, but hired manpower.
"By outsourcing the work, the client can be held responsible for the contractor in the event of non-payment of taxes and fees," he says.
Thus, a tax bill of just over 2,5 million kroner has been issued to Norwegian fish farms which they have to pay, the money should benefit the community.
They tried to raise money from companies in Eastern Europe, but companies are bankrupt and therefore there is no possibility of recovering them, states the Tax Office.
- Companies hiring labor need to be aware of the regulations. The use of construction contracts in situations where there is actual employment in another field can lead to this the company will become jointly liable for non-payment of taxes and fees, he says Odd Woxholt, head of the tax administration department.
Source: NTB
Photo: Lise Åserud / NTB
