In many cases it is not easy to judge a given transaction even with full knowledge of relevant legislation. In such cases we support our clients with tax law opinions on transactions planned or in progress, and we submit questions to the Tax Authority (NAV) or to the Ministry of Finance to confirm our opinion as to whether the business transaction has been treated correctly from a taxation perspective.
NAV opinions, Ministry of Finance opinions – binding?
Although the opinions from the tax authority or the Ministry of Finance are not binding, during a tax inspection taxpayers can demonstrate that they acted with the due care expected of them in the given situation, and sought professional assistance in connection with the transaction or deal in question.
Alongside NAV opinions, however, taxpayers can enjoy some “security” if they take advantage of the opportunity provided by the Act on Rules of Taxation and submit a request through their tax consultant for an advance tax ruling in certain tax types (corporate tax, personal income tax, local business tax). There is a fee for such requests, and they can only be submitted for future transactions, but under unchanged circumstances they can provide 100% certainty regarding the treatment of a given transaction, contract or set of contracts during a tax inspection.
- Requesting NAV opinions and Ministry of Finance opinions
- Preparation of advance tax rulings for large-scale future transactions
- Submission of APA requests to determine and verify arm’s length prices