Tor Mikkel Wara’s Tax Dilemma: A Swiss Affair
Hello, dear readers! Let’s dive into the whimsical world of Norwegian politics, where billionaires are more desirable than a cup of lukewarm coffee at a family reunion. We’ve got one Tor Mikkel Wara, former Justice Minister turned tax critic, warning Norwegians abroad against the perils of returning home. Spoiler alert: it’s not the cold weather or the herring on toast you need to worry about—it’s the hefty tax bills!
The Tax Burden That’s Burdening Taxpayers
- The tax situation in Norway is akin to a bad relationship – high maintenance with no reward. Wara’s advice? Stay in Switzerland, where the sun shines and the taxes don’t bite.
- Forget luring the billionaires back home; Wara’s mission seems to be a rescue operation for their wallets. Apparently, Norway’s wealth tax is about as appealing as a pop quiz on a Monday morning.
- He argues that Norway’s “unique” wealth tax is driving a “brain drain.” Honestly, what’s next? A campaign to bring home the world’s smartest squirrels?
Wara recently attended a gig for Norwegians in Switzerland, and it wasn’t just a fondue party. They gathered to chat about taxes—yes, riveting stuff, I know. Wara had a rather clear cut message: because of the uncertainty surrounding tax policies in Norway, it’s safer *not* to come back. Can you imagine the conversation in Lucerne?
“Hey, how’s it going, mate?” “Oh, fantastic! Living life without being shaken down for half my fortune!”
The Pudding of Prosperity
Let’s break this down a bit further. Wara laid out three key reasons for keeping those high rollers away from the Norwegian shores:
- There’s a climate of uncertainty—tax surprises pop up like a bad magic trick.
- The tax levels are as high as the fjords; apparently, the government has positioned themselves as a *very* strong contender for the “Most Generous Taxman” award.
- Returning home could be catastrophic for their businesses… they might need to drain their pockets just to fund this wealth tax. What a plot twist!
A New “Exit Tax” Drama
Have you heard about the government’s proposed exit tax? It’s as if they looked at the rich and thought, “You know what’s missing? More reasons for them to wave goodbye and take off to Switzerland!” Well, sportingly, Wara is not a fan. He feels like Norway is throwing the proverbial wet blanket on the business scene.
He claims the government is acting like a kid with a candy jar—overzealous and a little too eager to take a bite out of your profits. And what do you get in return? Not much, it seems.
Taxation That Fails to Engage
Wara is shaking things up! He believes that if the tax system doesn’t foster creativity or productivity, it’s time for a rethink. Thus, he’s on a personal crusade to get rid of the wealth tax entirely. Talk about a political mission that seems buoyed by pocket change, huh?
He wittily notes that taxing businesses only to redistribute that money back to them is like a taxation merry-go-round. Round and round we go, where it stops, nobody knows!
But hang on, he recently left his consulting job just to enter the political arena. It’s as though he’s donned the superhero cape to fight the villainous tax code. Our hero, ladies and gentlemen!
The Lure of the Swiss Life
But what about his Swiss contacts? Let’s put on our detective hats. Some of those elite billionaires he met? Apparently, they were previous clients. Has he crossed that fine line? While Wara brushes it off as harmless, isn’t it a tad suspicious? “But I’m not biased at all,” he might quip, as he furiously Googles “best Swiss bank accounts.”
The Bottom Line
So, what does this all lead us to? Wara hopes that after next year’s general election, he’ll be able to invite all the wandering billionaires back home, ideally to a Norway without the weight of crippling taxes—the sweet promise of the land of the midnight sun, minus the midnight expenses!
In summary, as Wara prepares himself for the political arena, he reminds us that in the world of taxes, sometimes, it’s better to stay just a little Swiss—cliché but true! Only time will tell how this tax drama unfolds, so stay tuned, and don’t forget to pack your fly swatter just in case those tax flies start buzzing around again!
Isn’t politics just grand? Until next time—dose up on those deductions!
Tor Mikkel Wara has visited Norwegians in Switzerland, but the FRP politician did not attempt to lure the billionaires home.
Tor Mikkel Wara is making a comeback in politics, and begins with a blow against the tax burden. Photo: Mathias Ogre/E24 Published:
Less than 2 hours ago
Updated less than 2 hours ago
The short version
- Former Justice Minister Tor Mikkel Wara warns Norwegian business owners against moving back from Switzerland due to Norway’s high tax burden, especially wealth tax.
- He claims that the uncertainty surrounding sudden tax changes and the new exit tax makes it unsafe to return home.
- Wara argues that removing the wealth tax can stop “brain drain” and contribute to a better creative environment in Norway.
- The Frp politician has finished his consultancy job to stand as the top candidate for the Oslo Frp, and hopes that a large Frp can influence tax policy after the general election.
The summary is made by the AI tool ChatGPT and quality assured by E24’s journalists
Show more
Back on Norwegian soil, he gives clear advice to the Swiss movers: While the Minister of Business and Industry wishes them “welcome home”, Wara says, on the contrary, that he thinks it is irresponsible for business owners to take their wealth back home with them.
– As it is now, it is not advisable to move to Norway, he says, and adds:
– The total tax burden in Norway is too high, and the wealth tax is directly harmful. It is uniquely Norwegian, at least at the high level it is at.
Read on E24+
Big overview: That’s how much prices have changed where you live
Switzerland trip
The former Minister of Justice resigned this summer from his position at the consulting company First House. Now he has been launched as Oslo Frp’s top candidate for next year’s parliamentary election.
He marks this by taking his place in the platoon which directs its defense against the government’s tax burden.
Wara has recently been to an event for Norwegians in the city of Lucerne in Switzerland. There they discussed taxes, among other things.
Wara met Norwegians in Lucerne. Photo: ARND WIEGMANN / Reuters / NTB
The visit has given Wara a useful boost. He lists the following three reasons why he now tells the Swiss movers that it pays to stay:
1. There is general uncertainty.
– They don’t know what’s coming. This government has introduced taxes overnight, he says and lists changes to wealth tax, basic interest on offshore wind and farming, and the temporary employers’ contribution.
Read on E24+
Full overview: This served 790 partners in EY, PwC, KPMG, Deloitte and BDO in 2022
2. The tax level is too high.
– There is no reason to believe that it will be reduced. On the contrary, you look like the government is framing them with the exit tax.
3. It is not certain that it is good for the companies they own that they return.
– It is because they have to drain them of money in order to pay the wealth tax. If you come to Norway now, the new exit tax will make it even more difficult to get out, says Wara.
The government’s final proposal for the so-called exit tax was presented in the national budget on Monday.
Entrepreneurs and the opposition have directed strong criticism. The government has responded by asking everyone to “breathe with their stomachs”.
The exit tax
“The government believes that the increase in the value of shares etc. which is accrued while the owner is resident in Norway, must be taxed here,” writes the government in the proposal for the national budget.
They propose to introduce an expatriation tax. This is how it will be:
- The amount limit will be NOK 3 million. In the proposal from the government, this sum was originally NOK 500,000.
- The amount is made into a basic deduction, which according to the government constitutes a relief also for those who have a profit of more than 3 million.
- The relocation tax shall only apply to the values that have been accumulated during the time the person has been resident in Norway.
- Those who move out can wait up to 12 years to pay. They can choose between paying everything at once, interest-free payments over 12 years, or paying only after 12 years – then with interest.
- If the person moves back to Norway within 12 years, the tax is waived in whole or in part.
- If the person who has moved out dies, the heir will take over the tax position of the deceased, according to the proposal.
- The government believes it can raise NOK 100 million in increased income through this proposal, but says this is “very uncertain”. They say that they believe the income will be able to increase to NOK 1.2 billion after 12 years.
Show more
Wara believes that the total pressure will mean “brain drain” and that Norway will eventually lose a creative environment.
– The government calls this a justice tax. The purpose of it is that values created in Norway should be taxed in Norway. Do you disagree with that reasoning?
– No, that is. I agree that you must pay taxes. But if it is the case that that tax does not give anything to society in terms of creativity and productivity, then we can refrain from collecting it. The exit tax is a tool because you have such poor framework conditions in Norway. Without such poor framework conditions, exit tax will not be an issue.
SUNGLASSES ON: Wara envisions a bright future in the Storting. Photo: Mathias Ogre/E24
– But are you afraid that it damages your legitimacy in this matter, when you say they should not move home?
– No, I am saying it is not justifiable to move back to Norway with this government. So I don’t think I can encourage them to move back to Norway.
– But you recommend them to stay in Switzerland?
– My wording is: It is not advisable to go home. So, they have to do what they want.
A round dance
In contrast to the Conservative Party, which wants to remove tax on working capital, Wara wants to remove wealth tax completely. And he believes it should be possible, if you cut the nutritional supplements.
– These are owners and investors whom we tax, and then we distribute all the same money back to business and companies. It’s a round dance where you take so much money that they need help and support afterwards, he believes.
Wara resigned from her job as a consultant at First House this summer.
The consultancy has secret client lists, but Wara can still reveal that some of the Swiss billionaires may have been on his client lists.
– Have you had customer relations with any of those you spoke to?
– I have worked for over 30 years as a consultant for business and have probably been away in some of them in slightly different contexts, but not very many of them and a long time ago.
– Does that mean there is a conflict of interest here?
– No. I have left First House, precisely because I was going to be a parliamentary candidate. It was to avoid too many questions about it, he says.
Now Wara is on the offensive, and is looking towards next year’s general election.
– Do you imagine being able to invite the emigrants back next year?
– If we get what we want, yes. We won’t get a majority on our own, but a large Frp can put pressure on the other bourgeois parties, and that gives us a better chance of getting a tax that makes it possible for them to come back, says Wara.
