Proposal from Ministry of Health increases workload for TAKS in Faroe Islands

A recent proposal from the Ministry of Health regarding the “reimbursement of health insurance fees” is set to significantly increase the workload for the Tax Authority (TAKS).

Director Eyðun Mørkøre highlighted that this change will result in a notable decrease in the agency’s capacity to oversee compliance, ensuring that individuals pay their rightful taxes. Mørkøre emphasized that TAKS is not responsible for this issue, stating that the agency’s role has been limited to collecting health insurance fees and allowing deductions for those entitled to them.

According to TAKS, the complexity of processing these applications necessitates that only current staff members, who are already trained and familiar with the system, handle them. The implications of this workload increase could hinder the agency’s broader oversight responsibilities, particularly in the coming year.

This development raises concerns about the potential impacts on tax compliance and the resources available for managing these responsibilities effectively.