1. Cost split when having assignments related to petroleum related activities on the Norwegian continental shelf and activities in other states (continental shelf).

  • On 19 May 1998 the Supreme Court rendered the judgement that the deductible part of the fixed costs should be calculated according to the "365 day rule", in other words as a share of the whole year and not as a share of the total number of assignment days in the course of the year.

It has been argued in the theory that for the solution of the allocation of fixed costs, the denominator of expenses allocation fraction should be fixed, but at a lower number of days than 365 days. This view is based on the experience that the number of days during which equipment in the offshore sector can possibly be active, is limited for natural causes, and that allocation of expenses should take into account the actual maximum time of operation. The Supreme Court did not decide whether such reasoning can be applied if it is clear the activities of the equipment are seasonal or for other physical reasons restricted to part of the year.

2. The case concerns whether a foreign company will losses on the day of departure from Norway can carry this forward against income when returning to perform activities in a later period in Norway.

  • On 28 October 1997 the Supreme Court rendered the judgement that the losses can be carried forward against profits regarding the same activity/business even if there has been no taxable presence in Norway for several years as long as the activities have been continued in other jurisdictions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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