The Business Compensation Scheme is part of the government’s measures to mitigate the financial effects of the coronavirus situation and the infection control measures.
The Compensation Scheme provides financial compensation for enterprises with large income loss resulting from the virus outbreak. The scheme’s aim is to help avoid otherwise viable businesses from going bankrupt because of the virus outbreak and the infection control measures. This way we preserve jobs, avoid employment terminations and allow the economy to bounce back more quickly when the immediate crisis has passed and the financial situation allows it.
The scheme is temporary and aimed at the enterprises that meet the criteria for receiving subsidies. The scheme will apply to the months of March, April and May.
Who manages the scheme
The Ministry of Finance has made the Tax Administration responsible for implementing and managing the scheme.
Many collaborators have contributed to getting the application portal and the case processing system up and running quickly. Finance Norway, BITS, DNB, the Norwegian Digitalisation Agency and the Norwegian Tax Administration have all contributed.
Enterprises that are applying for subsidies will use a digital application form. In this form, the enterprises will enter information themselves about the enterprise, including several revenue numbers, unavoidable fixed costs and other relevant information.
The application process is largely automated. If you meet the criteria in the scheme, it will not take long from when you apply to when you receive a payment.
Checks performed before payment
The solution has an integrated accuracy assessment system to verify the identity of the applicant and the subsidy amount against various register data and through cross checks. All approved applications will undergo an evaluation of seriousness before payments are made. If the checks uncover any discrepancies, the application may be processed manually and undergo an extra evaluation.
Checks performed after payment
In addition to automatic checks during the application process, checks are carried out at later stages to uncover potential fraud and crime. The applicant must also be able to document the amounts they have entered at a later stage and have confirmation from an authorised accountant or auditor that the provided amounts are correct. There will be audits performed to check the register information, for example whether the enterprise has received other benefits to cover lost income as a result of the virus outbreak for the same months, even though this support was not known at the time the application was sent to the Compensation Scheme.
The Norwegian Tax Administration may issue penalties if the enterprise receiving the subsidy has provided incorrect or incomplete information.
You can see who is receiving subsidies
The names of enterprise receiving public subsidies will be made publically available shortly after their applications have been approved.
Information about the enterprise and the amounts they receive will be searchable.
Here you can see who has received subsidies.