What Carrot?

The Norwegian tax issue never ceases to amaze us. After being hit by the “stick” of a retroactive change to the shipping tax regime, owners took some solace in the fact that the government provided a “carrot” by allowing one third of the profit to be subject to conditional tax exemption provided that the tax due on the profit is used for environmental measures. The proposed period allowed for implementation of these measures was identical to the repayment period of the tax or 10 years. So instead of going into government coffers, the tax would be redirected to the benefit of the environment.

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