Appeals board upholds 14 million kroner tax bill

A company must pay 14 million kroner in tax on fishing rights it sold for a profit of 28 million kroner, KVF reports. The Faroe Islands Tax Agency, TAKS, ruled that the tax was due.

The company argued that the sale qualified for an exemption under the law on taxation of gains from fishing rights. It appealed the decision, but the Appeals Board upheld TAKS’s ruling.

The rights began as a development quota before being converted into the company’s own annual quota. The Appeals Board said the Faroe Islands District Court and Court of Appeal had set out how the exemption provision should be interpreted, and that this case had to be assessed in line with those rulings.