Very Taxing

A crew manager acted for an owner operating in Norwegian waters. The crew manager arranged for crew from the Philippines. The crew manager was required, on behalf of the owners, to report the presence of the crew in Norway.

However, the obligation was also to not only report the dates of entry into Norway, but also dates of exit. The crew manager failed to advise the dates of exit. The owner was fined by the Central Office for Foreign Tax Affairs (COFTA).

The owner appointed a well known accountancy firm to appeal the amount of the claim. The fine was originally US$150,000, but was reduced to US$100,000 on appeal.

The owner brought a recovery action against the crew manager for the fine and the auditor’s costs of US$12,000. ITIC reimbursed the crew manager for the full amount of the claim.