Cermaq goes to court to avoid double taxation of EWOS profits

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Cermaq sues state and on Tuesday the parties will meet in Oslo District Court, Norway.

Salmon farmer fighting a decision from the complaint department from The Norwegian Tax Administration of nov 21. based on original decision local tax office East in 2016.

Cermaq made a profit on the sale of shares in EWOS, which was taxed in Chile in 2013.

SalmonBusiness did not have access to the decision, but Cermaq want original decision nullified while the state wants to keep it.

“The accounting gain from the sale of EWOS in Chile was NOK 21.8 million (EUR 2.1 million),” said Tone Marit Frøland Hagen of Ernst & Young Law Firm to SalmonBusiness. She represents Cermaq in court together with lawyer Aleksander Grydeland.

According to the final submissions, it was agreed that the gain was also taxable to Norway, and Cermaq Group, therefore, demanded a deduction for the tax paid in Chile in accordance with the rules on credit deductions in the Tax Act.

“The amount was taxed in Norway at 28 per cent despite the fact that it was already taxed in Chile at a higher rate (35 per cent). Cermaq believes that the gain should not be double-taxed and that a limited tax deduction in Norway still entails double taxation,” Frøland Hagen wrote in an e-mail to SalmonBusiness.

Attorney General at Law, Henriette Lund Busch told SalmonBusiness that she did not want to comment further on the case.

The Oslo District Court has set aside one day in court.