The tax authorities in eastern Norway, Skatt Øst, plan to examine an arrangement whereby Norwegian citizens, resident in the country and working out of Norwegian airports, rent out their services to the airlines through foreign companies, often based in tax havens.
If found to have claimed tax residency abroad despite living in Norway, they risk being slapped with punitive taxes or could even face jail sentences.
“We’re investigating concrete cases of people who do not pay taxes in Norway but who do actually live here,” the head of the tax office’s anti-crime division, Jan-Egil Kristiansen, told newspaper Dagens Næringsliv.
“This is serious. It undermines the tax base and is especially serious if the airlines are doing it on purpose,” said Kristiansen.
Airline Norwegian said it was not aware of the investigation but noted that it assumed contracted workers paid their taxes to the right countries. Ryanair did not respond to the newspaper’s queries.