Many Polish workers in Norway do not pay taxes

It seems that many Polish workers living in Norway are getting paid under the table, after tax reports showed that 28.027 out of 43.982 Polish residents are listed with little or no income in 2010, and paid no taxes.

"It is quite obvious that many of these people are working and getting paid under the table," said Øyvind Strømme, Director of the Norwegian Tax Administration.

Thousands of workers have come to Norway from Poland in the biggest wave of immigration workers since World War II. They have been a major contributor to the growth of Norwegian business and economy, but unfortunately their efforts have also contributed to underground economy.

The recent tax reports isn’t the only sign of tax cheating. Fafo has released a study that shows that being paid under the table is a big problem among Polish workers in Oslo. A total of 26 percent of Polish workers in the construction industry reported that they had no contract, and do not pay any taxes off their income.

"We have documented a large group that doesn’t pay taxes to either Norway or Poland," says researcher at Fafo, Line Eldring to NRK. Some of the reasons for why they don’t pay taxes could be seasonal work, tax agreements and deductions, but far from everything, tax authorities explain.

Working and being paid under the table is also a no good long-term solution, neither for the workers or for the economy. "Without a proper work contract and regular pay and tax deduction, the workers easily get stuck with short-term jobs," Eldring says. The researchers emphasize that it is not simply the Polish workers’ fault, but that some industries lack the culture that makes it easier to be a law-abiding citizen.

Jan-Egil Kristiansen, Director of Tax Crimes, disagrees. He thinks that the Norwegian labour market is well structured for immigrants. "It is definitely possible to work legally and pay taxes in Norway if you want to," he tells NRK.

(NRK)

Written by Julie Ryland

Saturday, 22 October 2011 06:34