From the time the alarm was activated until the crown support was moved, five months passed – E24

On Friday May 29, Finance Minister Jan Tore Sanner (H) received a letter from then-Tax Director Hans Christian Holte. It was an alarm.

On six pages, Holte listed how damaging it was for his agency to have to handle the cash benefit plan for businesses.

Among other things, he feared large losses of tax revenue because the agency would have less time to control the tax.

Just over a week later, Sanner reported some of Holte’s concerns in a letter to the Storting’s finance committee.

Sanner warned there that politicians gave the agency even more tasks during the pandemic.

Nybø believes in money in January

Then fast forward five months. Norway is hit by a second wave of infections. Society must be largely closed. On November 10, Sanner and Trade and Industry Minister Iselin Nybø (V) announce that there will be a new round of cash support.

But now the government has decided to transfer responsibility to the Brønnøysund registries. Thus, the first support payments, for the months of September to December, will not be possible until February 2021.

Now Nybø still believes that the first companies will receive money in January. At the same time, it now also opens for a longer application period.

Grants DKK 75 million

When asked if she has a plan B, the minister answers the following:

– I am very confident that the Brønnøysund Registration Center will offer a solid solution in January. Together with the Norwegian Directorate for Digitization and Altinn, they have extensive experience in handling large amounts of data and digital portals. Our goal is to receive payments in January 2021, Nybø says.

The government will increase registry budgets by a total of NOK 75 million, Aftenposten / E24 reported. This will cover the costs of setting up and managing the new scheme.

The tax authorities tell Aftenposten / E24 that they have spent NOK 250 million. Of this money, more than half was used for inquiries, case processing, complaints, and raising money that recipients should not have had.

But there is a big difference in workload between the old and the new scheme.

All requests must now be confirmed in advance by an auditor.

Much less people

The Tax Administration employs 7,500 people. About. 250 of these were pulled from regular work to receive and monitor the applications that arrived this summer and fall. Brønnøysund’s records indicate that they have 450 employees.

– It will be up to Brønnøysund’s records to assess how best to carry out the assignment. If it is appropriate to hire new employees, acquire development and processing capacity in the market, use your own counseling services and / or collaborate with other players, says Nybø.

Aftenposten / E24 has not been able to contact Lars Peder Brekk, director of records for Brønnøysund. On its website, companies are encouraged to prepare their applications.

What did the government do?

Aftenposten / E24 has asked Sanner what he has done to get ready for a new round of cash support. What happened from when you received Holte’s letter on May 29 until he and Nybø informed you about the move in November?

“The government has continuously monitored the infection situation and the financial situation to assess the introduction of financial measures to secure the Norwegian economy and jobs,” Sanner writes in an email.

He continues his answer as follows:

We pointed out in the package of measures presented in May that future measures should be oriented in the direction of growth and activity, and at the same time as during the summer, in dialogue with the parties, we must assess whether there was still a need for compensation to the industries that were most affected in the long term by the pandemic, such as the tourism industry. “

– incomparable

The Labor Party’s corporate policy spokesman is not impressed with the pace of the government.

– It is unmatched that they have not managed to prepare better. At the beginning of June they knew clearly that the Tax Administration could not at least take on more tasks, says Terje Aasland.

– Then they should train staff in the agency or start working so that others can take on that task.

Late payments will lead to job losses and business closures, Aasland fears.

Big changes in ten days

Aftenposten / E24 wrote on November 18 about the dissatisfaction of the main Virke organization with the new scheme. Virke fears that many companies will go bankrupt before receiving new support.

We then interviewed General Manager Anne Cecilie Winther at Oslo Kru AS, who sets up the sets. Despite annual earnings for the past five years, they did not qualify for government guaranteed loans. Oslo Kru wanted those loans while waiting for new cash support.

But after Aftenposten / E24 wrote the case, the government has made important changes:

• The requirement of what is considered a profitable business has been relaxed
• The maximum time to repay government-guaranteed loans has been increased from three to six years.
• The maximum grace period for such loans has been increased to three years.
• The degree of compensation of fixed costs has increased
• Possibility of deferring the payment of taxes and VAT

Gives banks room for maneuver

Sanner says he is now expanding the banks’ freedom of action.

– They can take into account future support under the compensation scheme, says Sanner.

When asked what he would advise business leaders who are not yet receiving liquidity loans from the bank, Sanner answers only in general terms. Refers to the work and changes mentioned above.

– In general, this will help to alleviate the liquidity situation of companies. At the same time, the state will never be able to assume all the risks and all the costs associated with a pandemic, and we must always put life and health first, he continues.