My tax is in violation of human rights – will take legal action against the state

Wealth tax, or “tax on working capital” as some would call it, is a hot potato these days:

Business owner Lars Oscar Øvstegård believes the property tax is one of the money he wants to use to create value in the village.

He runs commercial premises for rent.

He will actually use the money that the tax dispute is about for maintenance and to expand the business.

But while he has to send nearly 600,000 from his companies into the treasury, the corresponding sum for a foreign owner would be equal to zero.

The wealth tax only applies to those who live in Norway.

– Unfair. That is the simple answer to why I am going to court against the state, he says.

Hevdar violated human rights

Øvstegård believes that the taxation is discriminatory because it only affects Norwegian owners.

He claims this is in violation of both the constitution and human rights.

– There is no one else who has suffered more from this taxation than small and medium-sized district businesses, says Øvstegård, who owns a small to medium-sized business in Ørsta.

The desk in his office is full of documents showing tax calculations and the support he now receives from other business leaders. He has also obtained legal help.

– This is not about me not wanting to pay tax. On the contrary: I pay taxes with pleasure. But it must be the same for everyone, says Øvstegård.

– It is quite reasonable that the wealthy pay the tax

The government, which is made up of the Labor Party and the Center Party, believes that it is entirely appropriate that large forms are taxed according to the rules that exist today.

– We must always be able to discuss changes that make our tax system even better. But we think it is right and reasonable that people who have large fortunes also pay their rightful share to the community, says the Labor Party’s fiscal policy spokesman Eigil Knutsen to NRK.

He claims that Norway would have gained 25,000 more very rich people zero taxpayers if the wealth tax was removed. That claim is fact-checked and correct, according to Faktisk.no.

– And I don’t think ordinary people think that’s fair. With this income, we can also keep company tax and ordinary wages low, says the Ap politician.

Knutsen also problematizes the expression “working capital”. which, among other things, the business owner in Ørsta uses.

– Ordinary people’s savings are just as hard-working as the capital a business owner uses to finance his projectshe says.

Will check if the case holds water

Øvstegård has engaged law professor Mads Andenæs at the University of Oslo to help him with the lawsuit. Together with the Swiss lawyer Carl Baudenbacher, they will make a report to see if it is possible to take the state to court for the wealth tax.

Andenæs believes that small and medium-sized businesses are exposed to very strong interventions with the tax.

– Is this a case he has a chance of winning, or is it a marking case?

– I will not answer that, as Carl Baudenbacher and I are now involved in a thorough investigation process, Andenæs replies in an e-mail.

– I think I can win

– It is as if the Norwegian national team should be down by two or three goals even before a match against Sweden has started. No one had accepted it. Norwegian business owners start with a big minus, says Øvstegård.

The business owner and the lawyers are in the process of resolving the case. If successful, a lawsuit could come towards the end of 2024.

NRK has tried to get a clear answer online which sections of the Constitution and human rights they want to use as an argument. They say it is discrimination against Norwegian owners that they are going after, and that dIt is clear that the investigation work they are now undertaking should answer this question.

– I think I can win this case, says Øvstegård firmly.