Court upholds 200 million króna fine for tax offences

Iceland’s Court of Appeal has upheld a 200 million króna fine and a 15-month suspended prison sentence for Stefán Magnússon, mbl.is reported.

Magnússon was convicted of a serious breach of tax laws for failing, as managing director and board member of two private limited companies, to pay public charges withheld from employees’ wages. The non-payments ran from late 2020 until July 2023.

He admitted the conduct in Reykjavik District Court, where the case was handled as a confession case. On appeal, he sought to have the case dismissed, arguing that the district prosecutor had not investigated it adequately. The Court of Appeal rejected that argument.

The court acknowledged that the pandemic had created exceptional circumstances and severely affected restaurants, banquet venues and catering services. However, it found the non-payments were substantial and continued for so long that there were no grounds to reduce the fine further than the district court had, or to suspend it. The lower court’s ruling was therefore upheld.