The Resource Arcade Drilling AS v Norwegian State : Case E-15/11

Arcade Drilling AS v Norwegian State : Case E-15/11

Label
Arcade Drilling AS v Norwegian State : Case E-15/11
Title
Arcade Drilling AS v Norwegian State : Case E-15/11
Contributor
Subject
Language
eng
Summary
Judgment by the European Free Trade Association Court, Luxembourg, judgment date 3 October 2012. The taxpayer was a company registered in Norway but part of a group based in the UK. Its business was the operation of two oil rigs but these rigs came to operate off the UK and marketing, financial and operational management of the rigs were attended to by staff of the group in Aberdeen. Board meetings continued to be held in Norway, although no staff were employed there, until the group was taken over by another enterprise. The taxpayer's Norwegian directors were replaced by British directors and board meetings were held in Aberdeen. The UK and Norway had a double taxation agreement which provided for companies to be taxed in the country in which was the "place of effective management". The UK tax authorities determined that the taxpayer would be taxed in the UK and informed the Norwegian tax authorities accordingly. The Norwegian government regarded a company that relocated its head office outside Norway as being in breach of Norwegian company law. Whether the head office had been relocated outside Norway would depend on "an overall evaluation based not only on where the board's management functions are exercised". Such a company was obliged, if it did not bring its head office back to Norway, to be liquidated. A Norwegian company that liquidated was liable to liquidation tax on its assets and had to apply for an advance assessment of tax before completing its dissolution. The Norwegian tax authorities determined that the taxpayer's head office had moved from Norway and assessed the taxpayer for liquidation tax. The taxpayer filed action against Norway, arguing that the imposition of liquidation tax on relocation of the taxpayer's head office was a restriction on the freedom of establishment
Citation source
In: International tax law reports. - London. - Vol. 15 (2013),
Geographic coverage
Europe
Language note
English
http://library.link/vocab/relatedWorkOrContributorName
Baker, P
http://library.link/vocab/subjectName
  • EFTA
  • case law
  • fundamental freedoms
  • non-discrimination
  • head office
  • place of effective management
  • liquidation
  • exit tax
Label
Arcade Drilling AS v Norwegian State : Case E-15/11
Instantiates
Publication
Label
Arcade Drilling AS v Norwegian State : Case E-15/11
Publication

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