Decision on guidelines for the management of the compensation scheme
Date FOR-2002-07-09-1116
Affairs Ministry
Published in 2002 Booklet 13
Commencement 09.07.2002
Edited
FOR-2002-09-27-1118
Changes
For
Norway
Legal
FOR 2002-07-09-829, Parliamentary Decisions
Promulgated
18/10/2002
Short Title
Privacy compensation
Chapter Overview:
I
II
III
IV
Adopted by the Ministry of Finance 9 July 2002 pursuant to the parliamentary resolution of 21 June 2002, ref. St.prp.nr.63 (2001-2002), cf. Royal Decree. of 26 January 1996 § 3 and Delegated Decision of 9 July 2002 no. 829.
Changes: Changed by decision September 27, 2002 no. 1118.
I
In managing the compensation scheme, cf. Delegated Decision of 9 July 2002 no. 829 of authority to the Tax Directorate to process applications and determine the allocation by the compensation scheme, the following guidelines apply:
1 Scope of compensation
the compensation scheme applies to NGOs additional costs resulting from the VAT reform 2001.
2 which organizations may seek reimbursement
reimbursement applies to charitable and nonprofit organizations - so-called NGOs, cf. definition in the VAT Act § 5 first paragraph. 1 letter d . particular emphasis is placed on whether the organization works to safeguard the more general social interests across vested interests and whether it is available for a wide range of people.
Scheme applies, however, only charitable and nonprofit organizations that have a national scope or belonging to an association of organizations with national scope.
Examples of organizations that will fall under the scheme: Humanitarian and religious organizations and associations, sports teams - including corporate sports teams, as well as choir and band.
Examples of organizations that would fall outside the scheme:
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Industry, occupational and labor organizations, trade unions and political parties and party affiliated organizations engaged in political activity.
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Associations which safeguard members' financial and professional interests in common (NGOs).
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Vocational Organizations and student and student organizations that do the same task as a professional organization.
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Cooper and other associations with so narrow member association that business just comes a highly restricted group as a whole.
It is only the charitable and philanthropic part of the organization's activities covered by the reimbursement system. For example, not the operation of schools, nursing homes or convalescent considered part of this business.
3 refund
3-1 Which expenses are reimbursable
reimbursement applies additional expenses resulting from the VAT reform 2001. With additional expenses meant VAT on services that were added value chargeable as a result of VAT reform in 2001, for example, postage, financial services and legal services.
The reimbursement does not include value added tax related to:
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Procurement which was exempt from VAT before the reform, such as spending on office equipment, telephone lines and power subscription and advertising.
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Procurement to a subject to VAT part of the activities of the organization, if the input tax is deductible. The same applies to so-called public procurements, ie procurement for use in both a subject to VAT part of its operations in that part of the business that are not subject to VAT.
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Increased expenses resulting from the adjustment of VAT rate from 23 percent to 24 percent from 1 January 2001.
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Procurement covered by other government grants or compensation schemes etc.
3-2 Minimum Limit
The minimum limit for reimbursement is US $ 10,000 per. application. However, see special rule for 2002 in section 11.
3-3 Refund Period
Refund amount shall refer to expenses per. year. However, see special rule for 2002 in section 11.
VAT related to acquisitions from previous years can not be included in the application for the later years. The delivery time basis for assessing when a procurement is undertaken.
3-4 Reduction in reimbursement
If the total amount applied for exceeds the appropriation for the year, all reimbursements to be capped percentage.
4 Management Responsibility
Tax Directorate has management responsibility for compensation.
5 Announcement
The compensation shall be published annually in advance of the application deadline. The notice shall contain, among other information about the purpose of the scheme, the restrictions applicable to the scheme, application form and deadline. It is further advised that it could be implemented control measures.
6 Procedural
1.6 Application for reimbursement
application shall:
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Promoted by the organization's central part.
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Printed on application forms obtained from the Hedmark county tax office or can be downloaded from the website http://www.skatteetaten.no.
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Contain confirmation that the applicant is familiar with the guidelines for the reimbursement system.
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Signed by a person who is authorized to submit an application on behalf of the applicant and submitted in writing to Hedmark County Tax.
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Annex særrapport auditor, ref. Section 6-2.
6-2 Requirement særrapport auditor
Applications that exceeds $ 25,000 must be enclosed særrapport of registered or chartered accountant. Særrapporten emitted, on a separate form as an attachment to the application form, ref. Section 6-1. Independent auditor's report shall be based on auditing standard RS 800 Auditors' report on audits of special purpose.
In særrapporten shall confirm that:
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Organization covered by the reimbursement system, ref. Section 2
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Claim for a refund constitutes additional expenses resulting from the VAT reform, ref. Section 3-1.
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Amount not deducted as input tax in any taxable portion of the organization's operations, ref. Section 3-1.
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Contract is the charitable and philanthropic part of the organization's operations, ref. Section 2 last paragraph.
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Information is controlled in accordance with generally accepted auditing standards.
County Tax Office may, if they deem it necessary in the specific case, require særrapport auditor independent of refusjonskravets size.
6-3 Deadline
application must be submitted once per. year Hedmark County Tax. Applications must by 15 April either be postmarked or delivered to the county tax office. For the year 2002, there are special deadlines, see item 11 on the transitional arrangement.
Applications that are received after the deadline can not be expected treated. The same applies to incomplete applications, ref. Section 6-2. It is not given deadline postponement or redress for exceeding the time limit.
6-4 Letter concerning provisional commitments
Letters on provisional commitments shall be submitted each applicant who has been granted following. The letter drawn up in accordance with the provisions in the "Functional requirements for financial management in the state," paragraphs 11 to 3.4 and must contain:
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Recipient name, address, bank account number and organization.
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The total appropriation for the year, estimated refund amount and percentage of coverage of the refund claim.
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Subject to the reimbursement amount will be reduced further if the sum of reimbursable demands increase on the basis of klagebehandingen.
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That refund will be paid as soon as all applications have been processed.
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Reference to Ministry of Finance guidelines of 9 July 2002 no. 829, which shall be annexed to the letter of provisional commitments.
Currently commitment must also include a disclaimer on the right of the inspectorate and for the OAG to implement controls to refund receiver, ref. Parliamentary Appropriations Regulations § 17 and paragraph 10.2 below.
Currently commitment is regarded as individual Administration Act § 2 subsection b.
6-5 Refusal of reimbursement
decision to refuse the application for reimbursement is to be considered as individual Administration Act § 2, first paragraph b. the reason for the rejection shall be stated, cf. Public Administration Act § 24. the same applies to partial rejection of the application. It is further disclosed appeal in Public Administration Chapter VI.
Percentage reduction of refund claim because the total application amount exceeds the allocation for the year in question, is not considered as a refusal. Such curtailment can not be appealed.
Any applications below the minimum limit, applications submitted after the deadline or applications that are incomplete, shall be rejected.
6-6 Appeals
Refusal of refunds and determination to reject the decision regarded as individual Administration Act § 2 subsection b, and may be appealed under chapter VI. The complaint sent Taxes via Hedmark County Tax least three weeks from the date of notification of the decision reached the applicant.
6-7 Commitment letter
After all complaints are processed, the county tax office make a final distribution of the amount allocated for reimbursement of application period / year shown. A commitment letter sent recipients of the refund, with:
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Recipient name, address, bank account number and organization.
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Reference to the preliminary commitment letter with attachments.
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The final refund amount and percentage of coverage of the refund claim.
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Time when payment will be made.
Pledges The letter must also include a disclaimer on the right of the inspectorate and for the OAG to implement controls to refund receiver, ref. Parliamentary Appropriations Regulations § 17 and paragraph 10.2 below.
The final grant is final.
7 Lapse of reimbursement, claims for repayment
organization has a duty to immediately notify the Hedmark County Tax if it becomes aware that the refund is granted on the wrong basis.
If it is given a refund on incorrect or incomplete basis, the reimbursement decision is changed and the false refund to be recovered plus interest after provisions for payment of VAT, ref. VAT Act § 36 and § 37, second paragraph. The interest rate shall be equal to the prevailing interest rate determined pursuant to the Late Payments Act. Incorrectly refunded amounts plus interest can be offset against subsequent reimbursement application, ref. Also point 9.
decision regarding changes may be made until 10 years after the decision on reimbursement.
8 Procedures in Tax Administration for registration of pledges
Pledges must be recorded in accordance with the "Functional requirements for financial management in the state", including point 11 to 3.5.
9 Procedures in Tax Administration for payment, accounting and treatment of any overpaid refund
must be established procedures for disbursement, accounting and treatment of any excess amount paid refunds in accordance with the "Functional requirements for financial management in the state."
10 Monitoring and control
1.10 Requirements for Internal Control in the Tax Administration
It must be established methods and measures in the person who manages the reimbursement system, whose task is to detect and correct errors and omissions, see. Inter Others Economy Regulations for state § 21.3 and "Functional requirements for financial management in the state" points 2-6 and 11-5.
10-2 Monitoring and control of the applicant / recipient reimbursement
Substrates documentation refund claim must Beneficiary:
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Kept for 10 years after the application year,
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Be arranged in a way, which enables fast implementation of control and
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Be adequately protected against damage and theft.
Anyone who has applied for or received a refund, upon request of the inspectorate, including the OAG disclose supporting documentation for reimbursement requirement. This will also provide control authority necessary assistance to inspect and possibly making available equipment and software for this. This also applies to the optionally register and store accounting records on behalf of the applicant / recipient reimbursement.
11 Transitional related to dividend in 2002
The national budget for 2002, decided to allocate 195 million. Crowns for a VAT refund for NGOs. This covers the period from VAT reform in 2001 was implemented, ie the period 1 July 2001 - 31 December 2002.
2/3 of the appropriation allocated to the first period, which apply from 1 July 2001 to 30. June 2002. the deadline to apply for a refund for this period is 30 September 2002. the application may include procurements made in just this period.
1/3 of the appropriation allocated to the second period, ie from 1 July 2002 to 31 December 2002. The deadline to apply for a refund for this period is 15 April 2003. The minimum limit to seek reimbursement for this period set at £ 5,000. The application may, in addition to the acquisition made in the second period, also comprise acquisition occurred in the first period.
Unutilized funds from the first period, in connection with rebalancing the state budget for 2002 will be proposed transferred for distribution to the second period.
If reimbursement claims for the first time exceeds the share of funding, the requirements will be capped percentage. In cases where the second term remains unutilized funds will be returned to the first term of a new allocation if, in the first period was undertaken a percentage reduction.
II
It is envisaged that compensation will be evaluated after grants year 2003. In view of the above treatment of the Finance Committee in connection with the Revised National Budget for 2002 should however scheme be reviewed as early as the first half of 2003 with a view to identify the a model that can be easier to practice both the organizations and the tax authorities, within the limits otherwise adopted for the scheme.
Taxes account for the evaluation of the scheme. It should therefore be sent a copy to the Tax Directorate of the decisions. Taxes are requested until further notice on annual giving Finance Ministry report on the scheme. The report shall indicate, among other things how the scheme practiced, also with a view særrapportene from auditors, the number of applicants and the amount paid per. applicant.
III
Finance Ministry asks Taxes inform stakeholders and county tax offices about the Ministry's decision and initiate necessary measures for implementation of administrative decisions of 9 July 2002 no. 829 of authority to the Tax Directorate to process applications and make award for compensation as soon as possible.
IV
The decision takes effect immediately.
