Until now, there has been silence from the Conservative Party when billionaire tax loopholes have been discussed. Now they are slamming the door and standing behind the government’s decision.
This autumn, the government decided to close two “holes” in the tax legislation:
- The so-called “five-year rule”, an arrangement which has meant that Norwegians who have taken their wealth abroad with them, have not paid tax to Norway on, for example, share sales after five years, was repealed.
- Shares transferred to all close relatives who live abroad will trigger expatriation tax. Previously, this only applied to spouses.
In addition, the government announced an investigation into the possibilities of introducing requirements for the payment of deferred tax when moving out – a so-called “exit tax”.
The need to close “riching loopholes” in the tax system became apparent when a number of billionaires followed Aker owner Kjell Inge Røkke’s example and announced their move to Switzerland.
The Conservatives were critical of these proposals, and believed the government should have waited The Tax Committee’s report before they decided on anything. Beyond that, they have so far not taken a position on the government’s decision.
Supports five-year rule repeal
Now the Conservative Party stands behind the decision to close these tax loopholes. Storting representative Helge Orten (H) points out that the Tax Committee recommended a repeal of the five-year rule.
– We adhere to the government’s decision. We have no plans to reverse it, says Orten.
– Do you agree that it was right to abolish the five-year rule?
– Yes. We agree with the professional advice from the tax committee.
However, an exit tax is not high on the party’s agenda.
– We believe that taxing unrealized gains when you move is completely unreasonable. There can be many reasons why you want to settle in other countries at some point in your life. We are skeptical of further changes in the tax regulations, says Orten.
– Looks like you are not wanted
Orten believes that a higher tax level and harsh rhetoric from the left are the reasons why several billionaires have chosen to move. Among other things, he refers to SV’s new leader Kirsti Bergstø’s suggestion that “Røkke can smoke and travel” at the party’s national meeting last week.
– I think it is of great importance that they are referred to with a rhetoric that looks like they are not wanted in the country. In addition, there has been a political uncertainty linked to the tax system that we have not seen before, and which is negative for investments in Norwegian companies and workplaces, says Orten.
The Conservative Party will counteract the wave of emigration by cutting wealth tax working capitalworking capitalCapital that is linked to value creation and jobs, typically money that is invested in a company. and increase the share discountthe share discountAlso called valuation discount: The value of an asset, such as a share, is valued at less than its actual value, thereby reducing the basis for wealth tax. .
– And with nicer choice of words?
– Pleasant words alone are not enough. But we have great respect for what these job creators mean for the development of workplaces and welfare.
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