After Panama leak, Norway's open tax system inspires some

Image
AP Stavanger
Last Updated : Apr 14 2016 | 11:23 PM IST
The spirit of transparency that has propelled Britain's top politicians to release their tax returns is already a fact of life in Norway, where the annual financial details of every taxpayer are published online in a searchable database.
With the recent spotlight on the opaque world of offshore finance, some are looking to Norway as an example to follow at least for public figures.
"We believe transparency contributes to legitimacy and trust in the tax system," said Mariken Holter, a spokeswoman for the Norwegian Tax Administration.
Tax payments are also considered public information in Finland and Sweden, which like Norway are consistently ranked among the least corrupt countries by Transparency International.
But unlike Norway their tax authorities don't post that information in a searchable online database. Also, they don't have a wealth tax, which in Norway provides snoopers with an insight into total worth.
An annual tax list has been available to the public in Norway since 1863. In 2001 it was published online, turning a paper curiosity into a powerful database.
The transparency is supposed to uphold Scandinavian values of openness and egalitarianism, underpinning trust in one of the most expensive tax systems in the world.
But critics warn that having a fully searchable online directory of annual tax returns tramples privacy while appealing to voyeurism.
"If the list was used as a way of finding out that people have not paid their share of tax then this would be a good thing. But I don't think it is used like that," said Rolf Lothe from the Norwegian Taxpayers' Association.
"Ninety-eight percent of people use it for entertainment, and historically children were being bullied in school over their parents' income."
In 2013 the Norwegian government changed the rules to prevent anonymous searches, ensuring that if someone was checking out your tax affairs, you got an email to say who was doing the snooping.
"The intention was to reduce the public's search in the tax list merely out of curiosity, and thereby protect the privacy of the taxpayers," said Joergen Naesje, a Finance Ministry official.
The law change worked: the number of searches dropped by 90 per cent. It also halted plans by developers to create apps allowing users to quickly find out the wealth of contacts on social networks or dating sites.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 14 2016 | 11:23 PM IST

Next Story