The legal dispute centered on claims that the tax’s minimum deduction discriminates against larger companies, thereby stifling fair competition as stipulated by EEA rules.
The Hordaland District Court has dismissed a lawsuit filed by Mowi, the world’s largest salmon farmer, against the Norwegian state regarding the newly implemented ground rent tax on salmon.
Mowi initiated the legal challenge last year, arguing that the tax violates both the Norwegian Constitution and European Economic Area (EEA) regulations.
Mowi’s grievance specifically targeted the tax’s minimum deduction provision, effective January 1, which exempts profits under NOK 70 million ($7 million) from the new 25 percent aquaculture tax. This tax is in addition to the existing 22 percent corporate tax and is designed to impact only significant profits derived from sea-based salmon farming.
The court ruled that Mowi must wait for a full tax assessment before proceeding with any legal challenge, effectively stating that the lawsuit was prematurely filed and “too generally designed.” The judgment highlighted that Mowi, given its size and financial robustness, should be capable of adjusting during the period leading up to the tax authorities’ definitive decision on the tax implications for the company.
Government Attorney Fredrik Sejersted confirmed the dismissal, noting that the court’s decision does not affect the standing of the salmon tax itself, which continues to be enforceable. He expressed satisfaction with the ruling, stating it correctly concluded that Mowi’s lawsuit should be dismissed for the time being.
Ola Helge Hjetland, Communications Director at Mowi, stated the company is currently reviewing the court’s decision and has not yet decided on an appeal.
The legal dispute centered on claims that the tax’s minimum deduction discriminates against larger companies, thereby stifling fair competition as stipulated by EEA rules. However, the court noted that Mowi does not immediately require legal resolution since tax assessments are still pending, expected no earlier than autumn 2024.
The court also mandated Mowi to pay the state’s legal costs amounting to NOK 335,925 ($30,000) and noted that Mowi could pursue further legal action if it still contends that the tax is unlawful after receiving a specific tax decision.
Both parties have a one-month window to decide whether to escalate the matter to the Court of Appeal.
