Some of the Very Rich Receive Tax Evasion Help – E24

Friday night, the second season of the NRK series “Exit” premieres. There are central themes of tax havens, tax evasion and money laundering.

– This series is about a very special group, these are the ones who really consciously avoid, says Nina Schanke Funnemark to E24.

She became the new head of the Tax Administration last fall.

– For most of us, it is far from reality. I don’t mean to say this is common when compared to the wide width, but it is absolutely recognizable, says Funnemark of the patterns and structures that “Exit” characters use to evade taxes.

It recognizes them by leaks that the Panama Papers and its own analyzes are made by the Tax Administration.

– We know both from the work we have done and from the leaks that have been made that there are consultants who have finished ready-to-use products of various types of adaptations that you can use. We see examples of this in this series, says Funnemark.

– We also know that there are advisers in the market who help the wealthiest to find methods and adaptations to avoid taxes. It is enough in this segment «Exit».

– Shaken by the sight of women

Funnemark has already seen some of the episodes of the new season.

– I find it interesting when they begin to explain how tax evasion occurs and what those concepts are like. Beyond that, I think it’s a pure entertainment series, Funnemark says of the show’s new season.

– And then to me, like many others, I am moved by the vision of women.

In its first season, the series featured four men who treated women in a way that several have reacted to.

– Did you learn something or were you surprised by something in the series?

– No, not on the tax side. On the other hand, yes, but not from a tax point of view, says Funnemark.

– You have to be smarter now

What the “Exit” characters on the show do to avoid taxes is “typically on the illegal side,” says Funnemark.

– They use both straw men and mail companies or shell companies in tax havens and various business structures to move money, he says.

– Do you think that someone realizes the problem and that they may be doing something illegal when they see “Exit”?

– I think those who use the type of concepts mentioned in “Exit” know very well what they are doing, says Funnemark.

– But the awareness that we have a high degree of information exchange between countries about different account holders is something that we are very interested in transmitting. And we see that awareness has increased significantly in recent years.

Today, Norway has an agreement on the exchange of financial information with more than 100 countries. The IRS has also received more information on how assessors work to help people evade taxes and what methods are used, including through leaks like the Panama Papers.

– There has been more international cooperation, it has become more demanding to avoid and requires more planning and more awareness of actions than before. You have to get smarter now, says Funnemark.

However, he points out that the communities of specialists in the Tax Administration are closely following the developments and that the room for maneuver is shrinking.

– I think the use of tax havens has decreased

Because tax evasion cases are not public information, there are only estimates of how much money Norwegians have abroad that have not been taxed.

According to an investigative report referred to by the Tax Agency, Norwegians held 2.4 percent of their values ​​in tax havens in 2007. This corresponds to NKr 85 billion that should have been taxed, according to the agency. .

– Overall, international data indicates that the use of tax havens has declined significantly, says Funnemark.

This is because the Tax Administration now receives more information about those accounts from others, he believes. Funnemark, however, does not dare to estimate whether there will be any change in the deliberate evasions.

“Researchers point out that some of the richest people in the world still use active advisers to minimize taxes,” says the tax director.

The voluntary compensation scheme, in which you report money you have not paid tax on, also provides an indication of how much hidden wealth and income there is.

Since 2007, Norwegians have reported assets totaling NOK 80 billion and income of approximately NOK 3 billion to the Tax Administration, spread over 4,000 people.

It is not illegal to have money abroad

For the Tax Director, however, it is important to point out that it is not illegal to have money abroad.

– Having accounts abroad or transferring money abroad is completely legal and legitimate and absolutely necessary in many cases. The important thing is that you tell us what you have of income and property abroad, says Funnemark.

The fiscal adjustment is not illegal either, he notes.

– It is something completely different to use the opportunities found in the different tax systems in an open way where you provide all the facts you have, instead of withholding information and hiding information, says the tax director.

She encourages those who are unsure or think they may be doing something illegal to get in touch.

– It is possible with voluntary correction, it is possible to compensate it. But that possibility disappears as soon as we initiate a control action, says Funnemark.