An employee of the Tax Administration warned of misinterpretation of the EEA rules in 2010. A large group of foreign workers then lost up to NOK 30,000 a year.
The tax authorities corrected the mistake when the EU’s regulatory body ESA instructed Norway to change the practice last year, reports Klassekampen.
The error meant that many foreign workers have been denied what is known as “commuter status” and thus tax deductions. A commuter is a wage earner that spends the night away from home because of work. It is unclear how many have been affected but commuters must themselves take the initiative to get the correct tax settlement.
The agency has demanded that family commuters must be able to document that they have at least three to four home trips a year to obtain commuter status. The deduction can reduce the tax by up to NOK 30,000 annually.
The Ministry of Finance has now changed its practice. Nevertheless, the ministry will not require the Tax Administration to review all old cases again, the newspaper writes.
“The Ministry of Finance assumes that the taxpayer can also change the tax return for income years before 2018 according to normal rules. This means that taxpayers can change the provision for up to five years back in time in accordance with how the commuter rules are now practised. Taxpayers must then submit either a new tax notice or a complaint, and will have their tax settlement corrected on this basis,” senior communications adviser Helene Megaard in the Ministry of Finance said in a reply to the newspaper.
Regarding the tax employee’s notification of the error in 2010, the Tax Administration responded that it is not uncommon for professional discussion of regulatory interpretation in the agency and said they will listen to and evaluate all input they receive.
© NTB Scanpix / #Norway Today