Accounting violation was not aggravated

The owner of a sole proprietorship had been sentenced to 30 days of imprisonment by the Court of Appeal for an aggravated accounting violation. He had failed to ensure ongoing and updated bookkeeping for a period of 1 year and 9 months. During this time, the turnover was NOK 3.7 million.

The question in the Supreme Court was whether the violation should be classified as an accounting violation or an aggravated accounting violation.

The Supreme Court concluded that the defendant in this case should be punished for an accounting violation. While the Supreme Court considered the violation to be serious, it does not cross the threshold for an aggravated violation. In its overall assessment, the Supreme Court emphasised the fact that the inadequate bookkeeping was not intended to evade taxes or VAT, nor to conceal other criminal activities.

The 30-day prison sentence remains. There is no basis for imposing a community sentence.

This judgment provides guidance on the distinction between "ordinary" and aggravated accounting violations.

Read the judgment from the Supreme Court (Norwegian only) (PDF)

Area of law: Criminal law. Sections 392 and 393 of the Penal Code.  

Key paragraphs: 15, 17-18. 

Justices: Webster, Falkanger, Falch, Steinsvik, Lund