Assumes the work of the Petroleum Fund “regardless of the tax situation” – E24

This is stated by Tangen in the comments sent to E24 through Norges Bank.

On Thursday, the central bank answered a series of questions from its supervisory body, Banco Norges’ Supervisory Board. The questions were, among other things, whether the bank had done a thorough check of Tang’s economy before getting the job.

The response also included a review of Tang’s economy, which his British law firm Taylor Wessing did in February, and which Tang shared with Norges Bank.

There, the company stated that Tangen did not want to take on the job as head of the Petroleum Fund if he had to tax Norway all his income from the AKO Capital hedge fund, which started in 2005.

This “would make it very demanding” for Tangen to accept the job as head of the Petroleum Fund, writes Taylor Wessing in the February 20 review.

Tangen has planned to transfer all of its income from AKO Capital to the AKO Foundation, which works, among other things, against childhood obesity and education.

To take Oljefondet’s job, he had to receive a clear signal from the Norwegian tax authorities that the income should not be taxed in Norway.

I wanted to take the job anyway

But in March, Tangen changed his mind and came out of this condition, he reports to E24 through Banco Norges.

– This is what I was thinking on February 20. After being increasingly sought after at work, I wrote an email [13. mars] On wanting to take the job regardless of the tax situation, Tangen writes in a comment.

This is also confirmed with excerpts from an email exchange on March 13 between Tangen and the recently resigned Lieutenant Governor Egil Matsen, which E24 received from Norges Bank.

There, Matsen asks if Tangen is willing to take on the job, regardless of what the Norwegian and British tax authorities decide.

“Yes, I would accept the job regardless of the outcome of the tax decision. With pleasure! Tang writes.

They can be large quantities

If Tangen has to tax all of AKO Capital’s income to Norway, he may have to pay large sums. Tang’s law firm says it has made around £ 225 million ($ 2.9 billion) over the past year.

Of this, Tangen should have donated around £ 150 million ($ 1.93 billion) to the charity AKO Foundation, according to Taylor Wessing.

In the UK, gifts for charities are tax-free, according to UK authorities. In Norway, the tax deduction for charitable giving is limited to NOK 50,000 a year, according to the Tax Administration.

– Does not comment on individual cases

Tangen has asked the Tax Administration for a decision on how it will pay taxes in Norway, but according to Norges Bank has not yet received a response. The tax authorities will not say anything about the specific case.

– The Tax Administration does not comment on individual cases for the sake of confidentiality, section manager Lene Ringså in the Tax Administration’s legal department tells E24.

In general, the Tax Administration declares that it is normal to tax Norway all income, whether earned in Norway or abroad.

– In general, without commenting on specific issues, so when you are a resident for tax purposes in Norway, you are subject to tax for Norway on all income earned in Norway or abroad. As a tax resident in Norway, you are basically subject to overall tax liability to Norway. This means that in addition to the income earned in Norway, it must also provide income abroad, says Ringså.

– For example, can I earn a billion dollars in the UK a year and give it away without having to pay taxes to Norway?

– In general, tax authorities need to have much more information to be able to assess whether the scenario you describe involves a tax liability, says Ringså.

You will also pay wealth tax

Tangen also maintains that he will pay wealth taxes to Norway on all his wealth.

“And I gladly pay that tax,” he writes.

Tangen has repeatedly stated that he is willing to pay estate taxes to Norway from his total estate of more than £ 700 million (around NOK 9 billion). This tax will amount to about $ 70 million a year, according to Taylor Wessing.

In addition, Tangen, of course, will also pay ordinary income tax on the salary he will receive as head of the Petroleum Fund.