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The tax director’s first impression is that few abuse the cash support scheme, but he is not inclined for that reason. The Tax Administration is now easing the veil on how people who shouldn’t have received cash support still get it.
published:,
Tax authorities have been assigned one of their biggest tasks by the government to manage the cash support scheme. They are responsible for a large cash flow to Norwegian companies in the crown crisis.
Tax director Hans Christian Holte tells E24 that he has the impression that very few are abusing the plan.
Of 28,038 applications, around 8,092 companies have so far been rejected. Of the more than 19,071 companies that have received cash support, 323 companies have to repay the money for various reasons. 76 companies have already paid.
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– Are those who have to pay mainly people who have misunderstood, or conscious attempts to get more support than one is entitled to?
– It is a mixture of both. Some contact and say they will pay, some come from councils and the media, while other rebel applicants discover them ourselves. But in general, our experience is that it is mainly serious players who come close, says Holte, who will be the chief navigation officer starting in August.
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Red flags
Holte explains that there are no industries that stand out specifically when it comes to abuse or reimbursement.
At the same time, the controls so far have done a few things left:
- Companies that are closed for reasons other than the crown situation, such as
Renovation example. - The state has demanded that uncertainties about the company be closed. There may be restaurants that, for example, have been ordered by the municipality, but not by the state, to close.
- Differences between the information in the application and the tasks sent and
reports show. - Newly registered company in 2020 that establishes inevitable fixed costs in
2019. - Illogical relationship between application and other assignment.
Holte says the conditions described above are uncovered both in advance and following the distribution of cash support to companies.
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– How can you know so few weeks after the cash support was available that there is little abuse?
– This is a first impression, but I don’t see any reason for us to sit down and think that now we take it easy. We will use many resources and efforts to control this, says Holte.
– Are there conditions or industries in which it is difficult to control?
– I will not say no, we have many different methods and measures, so there are no special challenges.
These can receive cash assistance:
Far from 20 billion
So far, both the NOK 20 billion cash grant and the NOK 50 billion state loan guarantee have not been used to the extent that many originally thought.
– The government estimated in advance that up to 100,000 companies could apply. So far, around 28,000 have been submitted, does that mean the need was not as great as previously thought?
– These are good questions, and it has been difficult to estimate in advance how many would apply and qualify. But yes, much remains to be done in the first rough estimates since before the scheme was released, at the same time, the trend is that the biggest players have not yet entered the scheme.
He adds that applications have not yet been opened for April, which expires on May 15, and the application deadline for March, April and May is June 30.
– But you’re far from the 20 billion limit, do you think you will need the full amount?
– It has definitely surprised me that it is a good time until we are there, and I think we just have to see how it develops. I do not have such good conditions to consider how much we will need.
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I’m glad the lists are published
Friday is the deadline to apply for support for the month of April, and then the drop in billing should be 30 percent or more, meaning fewer companies will be included in the scheme.
When asked if the low number of applicants so far is surprising, Holte responds:
– I really hadn’t thought about that much beforehand, when things happened quickly. We didn’t have any exhaustive reviews on exactly that question.
“We had our hands full in establishing an effective scheme as quickly as possible,” he says.
Several consulting companies that E24 has spoken to say that publishing the lists is a challenge for many companies. Either because it can lead to negative public relations after support, or because you’re not used to being open about your own numbers.
– Some believe that, for example, many foreign companies do not want to apply for support due to public figures in the scheme. Is that correct?
– In general, there is a publishing approach in Norway that is different from that of many other countries, and this scheme fits well with that image. At the same time, I must say that the degree of transparency that we have, and that the press, for example, can evaluate the lists, significantly strengthens confidence in the compensation scheme.