Millions being invested in tax research

More than NOK 100 million is being invested in updating our knowledge about taxation, tax evasion and compliance when two new tax research centres opened in 2012.

10.01.2013 - Sigrid Folkestad

In September 2012, Minister of Finance Sigbjørn Johnsen opened two new tax centres, Oslo Fiscal Studies and the Norwegian Center for Taxation. The first will be established in Oslo, while the latter will be based at the Norwegian School of Economics (NHH).

The aim is to develop a strong tax research community in Norway.

'A well-functioning tax system is a precondition for a welfare society like ours. The financial crisis in Europe shows how important it is to have good regulations and an effective tax collection system. The two new centres represent a significant boost for the tax policy field in Norway, and I expect them to provide us with important knowledge that the Ministry of Finance can use to further develop the tax system,' says Minister of Finance Sigbjørn Johnsen.

Professor Guttorm Schjelderup at Norwegian Center for Taxation, Minister of Finance Sigbjørn Johnsen, Director General Nina Bjerkedal from Ministry of Finance, Rector Jan I Haaland and Director General of Taxation Svein Kristensen. Photo: Eivind Senneset

Strong cooperation

Oslo Fiscal Studies (OFS) is financed by funds from the Research Council of Norway and own funds from the University of Oslo, in cooperation with the Frisch Centre and Statistics Norway. The Norwegian Center for Taxation (NoCeT) will be established at NHH in cooperation with the Institute for Research in Economics and Business Administration (SNF) using funds from the Research Council of Norway, the Norwegian Directorate of Taxes and own funds from NHH.

The Research Council's programme for tax policy research has contributed NOK 32 million to the establishment of the two centres. The Department of Economics at the University of Oslo (UiO) has contributed NOK 16 million to its own centre, while the Norwegian Directorate of Taxes is giving NOK 15 million to the centre at NHH, and NHH itself will contribute as much as NOK 41 million. The funding will be spread over a period of five years.

In total, this represents a major investment of more than NOK 100 million.

'The Research Council's programme aims to stimulate tax policy research and contribute to recruitment to the field. The investment in the two centres involves channelling funds to research and teaching institutions that are academically strong. This makes the Research Council a strategic partner for the authorities and the research institutions,' says Helge Rynning, Senior Adviser at the Research Council of Norway.

Looking for causes and understanding

In addition to direct funding, the Norwegian Tax Administration will contribute data to the research.

'It is important to the Norwegian Tax Administration that we both know and understand why people act as they do. Previous research has been based on the economic effects of tax, but if we are to succeed in improving compliance, it is crucial that we know why some people choose to evade taxes, while others do not. This will help us to adapt and work more proactively,' says Director General of Taxation Svein Kristensen.

Jan I Haaland, Rector of NHH, is delighted with the establishment of the centre at NHH.

'NHH is especially qualified to host such a centre. Our interdisciplinary environment, which comprises economics, business economics, law, behavioural economics research, and strategy and management, makes us well equipped to revitalise research on tax and public sector economics,' he says.

This article is taken from the English version of NHH Bulletin for 2012.