Claim against the Tax Office was time-barred

Two business taxpayers had VAT and surtax reassessed in 2011. After an appeal, the reassessments were reversed in 2014. In 2015, the Tax Office decided to carry out a reassessment for 2009 for the two. After another appeal, these reassessments were reversed in 2017. In the taxpayers' action against the State, claiming compensation for economic loss due to the invalid reassessments, which was raised in 2019, the Supreme Court found that the claims were time-barred, see section 9 (1) first sentence of the Limitation Act. For the claims related to the VAT reassessments, the taxpayers already possessed the necessary knowledge at the time of the reversal in 2014. For the claims related to the tax reassessments, it had not been three years since the reversal when the action was brought. The Supreme Court's majority of four justices found no general rule that the limitation period only commenced after the underlying administrative case had been finally decided. Neither the text of the law, the preparatory works nor Supreme Court case law indicated such a solution. It had to be assumed that the taxpayers possessed the necessary knowledge of the basis of liability they asserted, already when receiving the reassessments in 2015. Consequently, the claims related to the tax reassessments were also time-barred. The appeal against the Court of Appeal's judgment, which dismissed the appeal against the District Court's judgment for the taxpayers, was dismissed. Dissenting opinions 4-1.

Read the whole judgment (Norwegian only)

Area of law: Limitation. Section 9 (1) first sentence of the Limitation Act. 

Key paragraphs: 58–62

Justices: Indreberg, Kallerud, Bergh, Høgetveit Berg and acting Justice Remen