Contractor company Impreglio is still waiting to receive ISK 1.5 billion (USD 22 million, EUR 15 million) in repayment from the Icelandic state. The Supreme Court of Iceland ruled last fall that the state had collected too much in taxes from the company between 2004 and 2007.
The misunderstanding occurred when the Commissioner of Inland Revenue collected tax from the company because of its Portuguese employees, but Impreglio was under the impression that the labor contractors Select and Nett should cover the payments, Fréttabladid reports.
Impreglio took the case to the Supreme Court, which concluded in September 2007 that the Commissioner of Inland Revenue had indeed been mistaken and that the Icelandic State owed the company ISK 1.2 billion (USD 18 million, EUR 12 million).
Last month the state had still not repaid Impreglio, by which time the amount had reached ISK 1.5 billion due to ISK 300 million (USD 4 million, EUR 3 million) in punitive interest. Impreglio then commenced proceedings against the Ministry of Finance, where, according to its lawyer Gardar Valdimarsson, the payment had been stopped.
“The ministry continually said they were reviewing the case. But Impreglio said a verdict had already been reached in this case,” Valdimarsson said.
Director of the Ministry of Finance Baldur Gudlaugsson told Fréttabladid that one of the reasons for the payment’s postponement was that an investigation was required to determine what Impreglio’s real share in the tax payments had been. The company should have paid taxes on the difference between the Icelandic minimum salary and the salary paid to the Portuguese workers by Select and Nett, he said.
According to Fréttabladid, every day of postponement costs tax payers ISK 1 million (USD 15,000, EUR 10,000) in punitive interest.