BW Gas joins tax change furore

MAJOR Norwegian-based shipowner BW Gas has joined the attack on proposed changes to the country's tax system which would effectively claw back tax going back 10 years which did not have to be paid under the current tax laws for shipping. BW Gas says that, if approved, the Norwegian government's back tax proposal would severely undermine the company's balance sheet and reduce its ability to invest in modern environmentally friendly vessels and compete internationally.

It notes: “Depending on the transition rules, the payable tax will be between Nkr3.8bn (US$664m) and NKr4.8bn, equivalent to a present value of NKr20 to NKr25 per share. Applying the book values, the equity ratio will be reduced from 38% to between 10% and 16%.”