Norway introduced a new general anti-avoidance rule (GAAR) with effect from 1 January 2020. The new statutory GAAR is similar to the previous GAAR in terms of scope, content and threshold for use with a few exceptions. The statutory GAAR will apply, for example, to both direct taxes and VAT purposes. Statutory GAAR applies if: (i) it is determined that the primary motive for the transaction or agreement is to achieve tax effects; and (ii) whether the transaction giving rise to the tax benefit is improper.
If the GAAR can be applied, the transaction shall be taxed as if the transactions had been completed in a manner that reflects the financial substance.
