In the central bank's blind spot

Abstract

The appointment in 2020 of a new head of the Norges Bank Investment Management (NBIM), has actualized a debate on tax havens, a growing concern following the international financial crisis of 2008. The article analyses the Norwegian central bank's approach to tax havens as it unfolded throughout the appointment process and illustrates traditional divisions in tax haven debates. The analysis builds on publicly available oral and written statements following the appointment, and relevant documents that inform the background of how tax and transparency became integrated in NBIM's work on ethics from 2017. The central argument put forward here is that the central bank position represents a traditional defense of tax haven use, in which challenges a request by the Norwegian Parliament to subordinate companies' tax strategies to ethical guidelines. We show that this is justified with four identified aspects of the central bank's tax haven approach: A narrow definition of the tax haven phenomenon; an unclear attitude to aggressive tax planning; a downplay of negative consequences of tax havens; a narrow interpretation of its own responsibilities. The discussions illustrate the need to clarify the content and practical management of the Norwegian policy on tax and transparency, including tax havens.