Source: EURLEX
Language: en
Format: md

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| 26.10.2006 | EN EN | Official Journal of the European Union | C 258/28 |

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Invitation to submit comments pursuant to Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement on a newly proposed scheme in Norway on the grant of financial support to unpaid labour in research and development activities, the ‘Unpaid R&D Labour Scheme’

(2006/C 258/12)

By means of Decision No 59/06/COL of 8 March 2006, reproduced in the authentic language on the pages following this summary, the EFTA Surveillance Authority initiated proceedings pursuant to Article 1(2) in Part I of Protocol 3 of the Agreement between the EFTA States on the establishment of a Surveillance Authority and a Court of Justice (Surveillance and Court Agreement). The Norwegian authorities have been informed by means of a copy of the decision.

The EFTA Surveillance Authority hereby gives the EFTA States, EU Member States and interested parties notice to submit their comments on the measure in question within one month from the publication of this notice to:

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| EFTA Surveillance Authority |
| 35, Rue Belliard |
| B-1040 Brussels |
| Registry fax: (32-2) 286 18 00 |

The comments will be communicated to the Norwegian authorities. Confidential treatment of the identity of the interested party submitting the comments may be requested in writing, stating the reasons for the request.

SUMMARY

The Authority has decided to open the formal investigation procedure in respect of a newly proposed scheme by the Norwegian authorities to provide grants to support unpaid labour in research and development activities (the ‘Unpaid R&D Labour Scheme’) with the underlying objective of stimulating increased investments in research and development activities by small companies, such as entrepreneur and one-man enterprises.

The Unpaid R&D Labour Scheme was proposed because the Norwegian authorities considered that unpaid labour in research and development activities could not be supported under the existing ‘Skattefunn Scheme’ (approved by the Authority in its Decision No 171/02/COL of 25 September 2002 and Decision No 16/03/COL of 5 February 2003). Under the Skattefunn Scheme aid is granted in the form of a tax deduction. However, the Norwegian authorities considered it incompatible with general tax legislation in Norway to deduct, in the taxable amount, an amount which is based on unpaid labour costs which have not been incurred nor paid in reality.

The Authority has assessed the Unpaid R&D Labour Scheme under the State Aid Guidelines on research and development. The Authority has taken the preliminary view that the aid awarded under the Unpaid R&D Labour Scheme is not an evident incentive to carry out research and development activities. In this respect the Authority considers that the unpaid research and development activities would be carried out even without the aid because the individuals carrying out unpaid labour were apparently prepared to undertake the relevant work without pay in any event. The aid appears therefore not to be necessary in order to achieve the aim of having the relevant research and development activities carried out. Moreover, the Authority considers that the cost of unpaid labour do not qualify as eligible costs within the meaning of the State Aid Guidelines on research and development.

The Norwegian authorities have further explained that many companies have been in charge of projects that were approved under the Skattefunn Scheme but that certain of these companies were subsequently prevented from receiving the tax deduction (or had to pay an amount corresponding to an already received tax deduction) due to the fact that unpaid labour was involved. The Norwegian authorities therefore introduced a scheme for purposes of compensating companies for financial losses caused to their research and development projects during the years between 2002-2004 as a result of the fact that unpaid labour could not be covered by the Skattefunn Scheme.

The compensation to be paid out for the above stated purpose will be paid out as de minimis aid and if the total amount of de minimis aid to an applicant exceeds Euro 100,000 during a period of three years the compensation will be reduced. Moreover, applicants must submit a complete overview of all de minimis aid the applicant has received as of 1 January 2003. The Authority has therefore taken the preliminary view that the Compensation Scheme falls under the de minimis threshold in the ‘de minimis Regulation’.[(1)](#ntr1-C_2006258EN.01002801-E0001)

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