Have you got a TAN? Norwegian Tax Assessment Notices Arrive Early

The Norwegian authorities have, somewhat unexpectedly, implemented a new process this year and started releasing all of the 2016 Norwegian Tax Assessment Notices (TANs) approximately 4 months earlier than usual. The new process is such that the TANs will be released in batches. The first batch was released at the end of June, with the remaining notices scheduled to be released on an ongoing basis between 2^nd August and 25^th October.

The TANs show how the Norwegian Tax authorities have assessed the Norwegian taxable income and the final income tax due by an employee. The final income tax due is compared with the amount of tax withheld by the employer during the tax year in question. The tax assessment notice advises the individual of any refund of tax that he may be due or any additional amounts that he may be due to pay.

Experience has taught us that given the often complex working arrangements that internationally mobile employees have, their tax assessment notices are often incorrect. It is therefore critical that the TAN’s are reviewed by a specialist who will quickly be able to identify and resolve potential errors. Failure to do this can mean that significant penalties and interest are charged to both the employees and employers alike.

TANs are very important documents and they cannot be ignored! If the Norwegian Tax authorities believe that the individual is due to pay additional tax and he does not pay it, they have the power to instruct HMRC to to collect the money from him.

If an individual  receives a demand to pay Norwegian tax he must take immediate action. It will not go away. He should also be aware that if he receives a refund of Norwegian tax which is actually not due and the Norwegian authorities subsequently realise their mistake, they will pursue him to repay this. In some cases, refunds may be due to be repaid to HMRC and it will be the individuals responsibility to ensure that it is done.

TAN’s also confirm the maximum amount of Norwegian tax credit that can be claimed in the UK from HMRC where individuals are completing a self-assessment UK income tax return. Any over claims of credit in the UK are treated as a very serious matter by HMRC.

If you or your employees have received a tax assessment notice recently and wish to discuss these further, then please don’t hesitate to contact us.