November 23, 2021
Norwegian media recently reported on the case of a 33-year-old resident of Drammen, who is going through bankruptcy for the third time. In 2010, the tax office filed for bankruptcy of his company, as the entrepreneur was in arrears with the payment of VAT (MVA) and did not send VAT reports. Additionally, violations of other legal provisions were revealed.
At the same time, the so-called bankruptcy quarantine, which was to last until 2013, was bestowed. However, this quarantine does not apply to one-person business, commonly known as a sole proprietorship, i.e. enkeltpersonforetak - ENK.
The businessman started a new sole proprietorship in 2012. In 2019 the company was announced for bankruptcy again. This time it was caused by missing tax advances and unpaid tax of almost two million kronor.
Tax arrears do not always have to amount to millions of NOK. In Stavanger, the tax office filed bankruptcy of a transport company that did not send VAT reports (MVA - melding) and generated tax arrears of less than NOK 200,000.
In many of the described cases, companies subject to bankruptcy do not have accounting records. It is worth remembering that business is governed by similar laws all over the world. If we run a business in a country whose regulations we do not know, it does not release us from the obligation to conduct business in accordance with these regulations.
So if we want to avoid bankruptcy, we should pay close attention to the timely sending of VAT reports, paying advance payments for employee income tax and paying the VAT due to the tax office.
It must be remembered that the management board, not the company's shareholders, is responsible for the company's operations in Norway.
Follow our blog to find out more about running a company in Norway, VAT and cost optimization in the company.
It is not known what fate will befall the three-time bankrupt. We can guess, however, that as the owner of a sole proprietorship in Norway, he will be responsible for its debt as a private person until the debt is repaid.
Source: https://www.dt.no/ https://www.dagsavisen.no/
Graphics: <a href='https://www.freepik.com/psd/building'>Building psd created by asylab - www.freepik.com</a>
At the same time, the so-called bankruptcy quarantine, which was to last until 2013, was bestowed. However, this quarantine does not apply to one-person business, commonly known as a sole proprietorship, i.e. enkeltpersonforetak - ENK.
The businessman started a new sole proprietorship in 2012. In 2019 the company was announced for bankruptcy again. This time it was caused by missing tax advances and unpaid tax of almost two million kronor.
Tax arrears do not always have to amount to millions of NOK. In Stavanger, the tax office filed bankruptcy of a transport company that did not send VAT reports (MVA - melding) and generated tax arrears of less than NOK 200,000.
In many of the described cases, companies subject to bankruptcy do not have accounting records. It is worth remembering that business is governed by similar laws all over the world. If we run a business in a country whose regulations we do not know, it does not release us from the obligation to conduct business in accordance with these regulations.
So if we want to avoid bankruptcy, we should pay close attention to the timely sending of VAT reports, paying advance payments for employee income tax and paying the VAT due to the tax office.
It must be remembered that the management board, not the company's shareholders, is responsible for the company's operations in Norway.
Follow our blog to find out more about running a company in Norway, VAT and cost optimization in the company.
It is not known what fate will befall the three-time bankrupt. We can guess, however, that as the owner of a sole proprietorship in Norway, he will be responsible for its debt as a private person until the debt is repaid.
Source: https://www.dt.no/ https://www.dagsavisen.no/
Graphics: <a href='https://www.freepik.com/psd/building'>Building psd created by asylab - www.freepik.com</a>
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