Tax Western require 18.6 million of clothing manufacturer Moods of Norway. The agency believes clothing manufacturer has given unreasonably good, tax-free discounts on clothes for their employees.
the requirement must then be paid in the form of payroll taxes, tax, social security contributions and surtaxes according to Dagens Næringsliv.
the decision was made in February and is based on a tax audit of the subsidiary Moods Retail in 2013, where Tax West discovered that it was given what they consider to be unreasonable good personnel reductions in the period 2009-2013.
– Tax West believe we have given too much discount to our employees. We believe we do not have it. The law is very vague on this and says nothing about how many percent discount they can give employees, only that one should not lose money. And we have not done. So we are confident that the claim falls. Lawyers and attorneys we spoke with say that we have things in our favor, says Jan Egil Flo, general manager of the Moods of Norway to DN.
Moods Retail appealed the decision in April, warning that they will take legal action if the appeal is not successful. Tax Administration reports that there are no specific limit on how large discounts can be given, and this type of case is assessed individually.
DN reported earlier Thursday that Moods of Norway has acquired all Brandstadmoen shops, after both chains worn lately.
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