Equinor sues the state for tax reduction – E24

In March of next year, Equinor Energy AS will meet with the state in the Oslo District Court. The background is that the company changed its tax in the period 2012 to 2014.

When Equinor’s subsidiary, Equinor Energy, sold gas to the parent company, the Petroleum Tax Office thought the price was too low.

When the Petroleum Tax Office believes that Equinor Energy has sold the product at too low a price, it can change the company’s income. That number sets the stage for how much the business will pay in taxes.

Norwegian tax law states that domestic sales must follow market prices.

Benefits of the cheap sale

Equinor Energy extracts oil and gas on the Norwegian platform. The products are sold to the parent company, which sells more in the markets.

Equinor Energy is subject to an oil tax of 78 percent, while the parent company has an ordinary tax of 22 percent.

Therefore, they benefit from selling as cheaply as possible to the parent company.

The less Equinor Energy charges for the product, the lower the taxable income they receive.

The trial will take place for 15 days in March 2021.

Equinor does not wish to comment on the matter to Aftenposten / E24. Neither does the Tax Administration.

So-called transfer prices are regularly raised in court. In October, Neptune Energy will meet with the state in Jæren District Court.

– Indicates a large and complete case

Harboe & Co. attorney Christian Grevstad is an expert in transfer pricing and oil taxes.

– For a civil case, 15 days in court is too long. This indicates a large and complete case, tells Aftenposten / E24.

You don’t want to speculate on how much money is involved.

– I don’t want to say if they are priced too high or too low. The oil tax office probably thinks it’s too low and that the company’s revenue, which is taxed at 78 percent, should have been higher, he says.

Equinor is the largest company on the Oslo Stock Exchange. The state owns 67 percent of the company.