In a letter to shareholders and employees, Røkke writes that it has been a difficult choice, but that he has now decided to move from Norway to Switzerland. At the same time, he writes that the companies must continue to be Norwegian. – My capital will still work in Norway. The family company TRG and listed Aker continue as before with Norwegian roots and knowledge-driven industrial development with the world as a market, the letter states. It was Dagens Næringsliv that mentioned the case first. Moving to Lugano Røkke emphasizes in the letter that he will continue to be a long-term principal owner and chairman of Aker. – At the same time, it is natural that I gradually consider stepping down from the board of several of the portfolio companies. I want to spend more of my time and resources on philanthropic activities, he writes. Røkke writes that the city of Lugano in southern Switzerland will be his new address. The city was not chosen for financial considerations, according to Røkke. – I chose Lugano as my new place of residence – it is neither the cheapest nor has the lowest taxes, but it is, in return, a great city located in the center of Europe. He also writes that he has given the home in Asker as a gift to his ex-wife Anne Grete, who will live there together with the children they have together. You can read the entire letter from Røkke here. The mayor thanks Røkke Asker mayor Lene Conradi (H) would like to see Røkke stay in the municipality, but says there is little they can do about the fact that he has now chosen to move. She does not fear that this will affect the municipal services. – The tax revenue from the residents is an important part of the municipality’s income base, and helps ensure services for the residents. Therefore, the tax income from all residents is important, even if Røkke has contributed a lot. She is grateful for the time the businessman chose to live in the municipality, and for what he has contributed as a resident. – He has been busy with and wanted to give something back to the local community of which he and his family are a part. I wish Kjell Inge all the best, and am sure that he will continue to contribute with value creation and jobs in Norway. Think more people will move Tax professor Guttorm Schjelderup at NHH believes it is likely to believe that Røkke is reporting moving now to avoid paying tax on the values he has accumulated. – If he lives abroad for five years, he becomes practically tax-free. So Røkke probably knows that work will be done to close this tax hole, so that one will have to be evicted for far more than five years. It is therefore beneficial to move out now. The reason why it can be beneficial is that work is being done to make changes that will make it less profitable to move the mold abroad. Among other things, the Tax Committee, which was brought down in December last year, will look at measures to prevent people from moving abroad to save tax. They have until 1 November to present their proposals. Professor Guttorm Schjelderup at NHH. Photo: news Schjelderup believes that several rich people may come to do as Røkke in the future. – Many who have large fortunes are aware that work is being done to close the five-year rule, so that it will be more difficult to move out. For those considering this, it is now or never. The five-year rule on tax-related expatriation from Norway Section 2-1 of the Tax Act states that everyone who is resident in Norway is obliged to pay tax to the kingdom. The tax liability applies to all income and all assets. In order for tax residence in Norway to cease in connection with relocation, it is a prerequisite that the taxpayer or his/her close relatives do not dispose of housing in Norway. What is to be considered a residence follows from § 2-1 sixth paragraph letters a and b. A housing unit that was acquired at least five years before the income year in which residence is taken abroad and which during this period has not been used is not considered a residence as residence of the taxpayer or his close relatives”, cf. § 2-1 sixth paragraph last sentence. Ole Gjems-Onstad, professor emeritus in tax law at BI School of Economics, also believes the move is connected with the tax Røkke has to pay. He thinks Røkke may have paid around NOK 660,000 a day in wealth tax. – Everyone who deals with economics and finance and taxes thinks that Røkke is moving because of the wealth tax, regardless of whether he says that it has a nice climate and that it is centrally located. He calls the move a frontal attack on wealth tax, which according to Gjems-Onstad is a trifle in Switzerland compared to Norway. Tax lawyer Bettina Banoun in Wiersholm says she does not want to comment on Røkke’s tax situation, but that she has noticed that Norwegian taxation of shares has been tightened. She notices that there are many people who are now seeking help. – As a tax lawyer, in 2022 I have experienced a markedly stronger influx than before of wealthy people considering moving out. SV does not surprise Nestléar in SV, Torgeir Knag Fylkesnes, says that unfortunately it has become quite common for the richest to move to Switzerland to avoid taxes. SV has previously, among other things, proposed extending the five-year rule to ten years. The counties believe that it is urgent to put arrangements in place that can prevent such a move. – You cannot get a clearer example of why SV’s proposal for a departure tax is a good idea. I fear that several of the country’s super rich will leave the country until such a tax is introduced. Now the government must take action, SV deputy leader Torgeir Knag Fylkesnes. Photo: Torstein Bøe / Torstein Bøe Hadia Tajik in the Labor Party says she is surprised and disappointed that Røkke is now taking his moving load to Lugano. – Kjell Inge Røkke is Norway’s richest man, and announces that he is now finished as a contributor to the Norwegian community. A community and a society have contributed to Røkke’s career and fortune. Hadia Tajik (Ap). Photo: Håvard Greger Hagen / news Will not reduce the tax Raudt manager Bjørnar Moxnes is also disappointed by Røkke’s choice and that he will no longer pay tax to Norway. He believes that meeting the rich with lower taxes is not an alternative. – Raudt believes that the richest should contribute more to society, and it is important that Norway does not allow itself to be held hostage by billionaires who threaten capital flight. If we lowered taxes to prevent people like Røkke from moving, we contributed to a race to the bottom in tax policy. Une Bastholm in MDG thinks it is difficult to verify Røkke’s explanations for why he is moving. But she notes that there are many rich people who now choose to address themselves in Switzerland. – There is a sad pattern here, where a number of super-rich Norwegians have reported moving to Switzerland, or rather placing business and money in the tax haven. Rosar Røkke Business policy spokesperson in the Liberal Party, Alfred Bjørlo, thinks it’s a shame that Røkke is doing the Swiss thing. – He is one of the great industrial builders of our time, and has created thousands of jobs for Norway. On a day like this, it is appropriate to praise him for his efforts. Business policy spokesperson in the Liberal Party, Alfred Bjørlo. Photo: Geir Olsen / NTB He fears that several rich people will move because of the announced policy the government will pursue. – With a government that increases wealth tax and discourages building industry in Norway, it is not a matter of course that people, not even Norwegian capitalists, will want to establish industry here, he says. He receives support from the industrial policy spokesperson in the FRP, Sivert Bjørnstad. – If we have a tax pressure that is too high, it will contribute to resource persons on whom we are completely dependent disappearing out of the country. Will not speculate The head of the business committee at the Storting, Willfred Nordlund (Sp), says he does not want to speculate as to why Røkke has now sent a notice of relocation. – The Center Party is preoccupied with national ownership, and that all Norwegians pay tax according to their ability to the community. Røkke has not gone into the reasons for his move, so I do not speculate on what they might be, he says. Willfred Nordlund in the Center Party. Photo: Stian Lysberg Solum / NTB KrF manager Olaug Bollestad wishes Røkke the best of luck when he now moves to Lugano. – The nature in Switzerland is not so different from that in North-West Norway, where Røkke grew up. So I hope he feels at home there. In addition, it is a shame for the Labor Party and the Støre government that they are losing an important support player and tax contributor, she says.
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Kjell Inge Røkke announces move to Switzerland – news Norway – Overview of news from various parts of the country
