Wednesday, July 6, 2016

IRS turns. Trekker Tax claims of 550 million to … – Dagbladet.no

(Dagbladet): Last autumn it became clear that the source Concert in Kristiansand and Stavanger Symphony had received a huge bill from the state.

Together, the two culture houses pay a total of 550 million in additional sales tax to the state.

The concern of tax justification was that all activities Concert the doing, is to be regarded as economic activity in competition with other players. Kristiansand and Stavanger has built its signature building with VAT compensation, and this state supported was illegal and distort competition, according to the tax administration.



The source Concert
  • Kilden for Sørlandet IKS opened a new concert hall on January 6, 2012.
  • the building is 16 500 square meters and has four public halls.
  • built with VAT compensation.
  • Kristiansand got a bill of 294,455,009 million in arrears of VAT.
  • This requirement is reduced by 273 596 830 million.

Moms compensation should therefore be repaid.

Reduces bill

But now the government has reversed.

The two municipalities must not longer pay the record-breaking amounts.

Kristiansand should have paid 294 455 009 million in sales tax to the state, while the Stavanger mayor got a bill of 256,878,528 million.

the mayors of the two towns protested, warned that they would complain and at worst go to court against the requirements.

But the Tax Directorate has now seen the complaints and taken them partially upheld. For Kristiansands part directorate has decreased by calculation to $ 273,596,830.

They conclude that source now have to pay £ 20 858 179. Thus, a significantly lower amount than first expected.

Taxes writes in its decision that there is neither actual or potential competition for all operations at the Culture source. “Competition is argued to be more theoretical or constructed nature.”



Content

Mayor of Kristiansand, Harald Furre (H) has previously been very disappointed repayment decision. Now, however, he pleased.

– It is a great pleasure to receive this letter. This is more or less to provide full support for our view of the VAT requirement, he says to Dagbladet.

The letter concludes that the Culture still engaged in any activity which is kokurransedrivende and therefore must pay back just over 20 million.

– It is reasonable tax policy that not all cultural activities shall be subject to exemption from VAT, but we shall go through the Directorate requirements and consider this. But today we celebrate that we have got the message across that we have to pay 95 percent of the claim amount, he said.

He, however, points out that it is perceived as a very unnecessary extra burden to have had to fight the IRS in this case.

– We have always been confident in our case and felt that the request was unreasonable. But this case has led to a lot of extra care both in terms of ideas and expertise. I see it now as an unnecessary strain on the Source and Source owners.



Getting guidelines for other Culture

Additional requirement for reimbursement of VAT was sent to Kristiansand and Stavanger in October last year. Kristiansand complained and got an extension on the requirement, and have not yet paid back, while Stavanger paid his claim of more than 250 million in the fall.

Mayor of Stavanger, Christine Sagen Helgø, received today the news that they will be repaid much of that amount.

– we have regained 217 of 256 million, which means that we have regained about 85 of the total amount. This is something I have fought for since 2007, so today I am very happy, she says to Dagbladet.

Also she feels the treatment municipalities have been reprehensible.

– There are major differences between the numbers here. I believe that tax west interpreted too strictly in relation to the legislator’s intention. I have meant all the time, she says and adds:

– We asked to have this ready in 2007, and then we get a decision in 2015 by Tax Office. They have spent so many years trying to make the decision that now turns out to be wrong, it’s very special.



accept others Culture

Million requirements against the two culture houses have also created headaches for other cultural groups. About requirements were standing it would have affected all 43 Culture and cultural projects across the country.

– There goes another relief sigh of culture Norway now because the Tax Administration has no basis for claiming VAT to the extent that they added up to, said mayor Harald Furre.

– Important for the government

culture Linda Hofstad Helleland is to Dagbladet relieved that the Tax Directorate has issued new decisions in the cases.

– It has been important for the government to find a good solution in these cases, and now I hope it gives a good predictability of the important cultural institutions such as source and Stavanger Concert Hall is, she says to Dagbladet.

Expecting new interpretation of the law

The major deviations in VAT claims due to a new supervisor from the European Commission of 19 May 2016 the Ministry of Finance interpretative statement dated 27 June 2016 writes Jan Magnus Director of the Legal department in the Directorate of Taxes in an email to Dagbladet.

– on the basis of this clarification has Taxes made decisions that reduce the demand for repayment of compensation for VAT significantly concert houses, he writes.

He argues that there are several reasons why it has taken time for the IRS to conclude in these cases.

– partly because it was important to clarify the interpretation of regulations. After interpretation existed on June 27, it did not take long to settle the matter, writes Magnus.

He would not comment on the extra burden this matter had for municipalities.

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