Iceland Loses ISK Billions in Tax Fraud Skip to content

Iceland Loses ISK Billions in Tax Fraud

By Iceland Review

The loss in revenue for the state treasury because of tax fraud in 2008 amounts to ISK 44 to 60 billion (USD 355 to 484 million, EUR 270 to 368 million) if the situation was similar to that in 2004.

That year, a report conducted by a tax fraud committee concluded that the Icelandic state and municipalities were deprived of between 8.5 and 11.5 percent of their revenue because of tax evasion, Fréttabladid reports.

One of the committee members, Indridi H. Thorláksson, said the report had not been followed up properly. It specifically stated that attention must be directed towards tax shelters abroad.

Legislation had to be amended to “prevent taxation laws from being eluded and Icelandic taxpayers from taking advantage of taxation paradises and various low-taxation areas to hide away profits that they should pay tax in this country,” the report stated.

“If people had followed the proposals we would be looking at a much firmer position for the tax authorities to investigate matters and access to information would be better,” Thorláksson stated.

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