The amnesty or voluntary correction allows people to voluntarily contact the authorities and report wealth or income for which they previously should’ve been taxed on and avoid punishment.

Those who are granted voluntary correction pay the tax owed and interest, but avoid additional penalties in the form of extra tax and potential criminal convictions. 

The voluntary correction scheme covers income in both Norway and abroad.

Last year 212 people contacted authorities to report undeclared income and assets.

Since 2007 around 80 billion kroner of assets and three billion kroner of income has been voluntarily reported.

The government is looking to scrap the scheme because the information and cooperation from foreign tax agencies has improved, making it easier for the tax administration to discover hidden assets and income.

The decision is being mulled over by the Ministry of Finance. They will assess dropping the voluntary scheme along with skatteetaten, the tax authority, and any planned proposals will be open for public consultation.

“The risk of being discovered if you have hidden assets and income has therefore increased, and the tax authorities are not as dependent on voluntary correction to determine the correct tax. In the government’s view, there is therefore reason to consider changes in the scheme of voluntary correction,” the ministry said.

If voluntarily corrections are dropped, then additional tax, as well as the tax owed, will have to be paid.

READ MORE: Five things foreigners should know about income tax in Norway

Residents of Norway are taxed on their income earned outside of Norway, which includes money earned from interest, property and shares.

If you have already been taxed on this income in the country it was earned, you can receive tax credits in Norway if you provide proof of the tax paid.

You can find more information on the tax rules that apply to people who have income, debt or capital outside of Norway here.