Norway vs Telecomputing, June 2010, Supreme Court case nr. HR-2010-1072-A

Posted on | By Courts of Norway
Category: Commercially Irrational Transactions, Delineation - Substance over Form, Financial Transactions | Tag: , , ,
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This case was about the qualification of capital transfers to a US subsidiary – whether the capital should be qualified as a loan (as done by the company) or as a equity contribution (as agrued by the tax administration).

The Supreme Court concluded that the capital transfers to the subsidiary as a whole should be classified as loans. The form chosen by the company (loan) had an independent commercial rationale and Section 13-1 of the Tax Code did not allow for reclassification of the capital transfer

The Supreme Court ruled in favor of Telecomputing AS.

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Related Guidelines

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Supplemental Guidance

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