Icelandic Tax Worker Mistakenly Refunds Millions

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Icelandic Tax Worker Mistakenly Refunds Millions

By Alëx Elliott
Sunset in Reykjavík

Photo: Páll Stefánsson.

Mistakes at the Icelandic tax office could be costing millions of krónur.

Iceland’s Directorate of Internal Revenue, or RSK, paid ISK 43 million (USD 383,000/EUR 277,000) in a tax rebate to a company this January, despite the fact that the company in question had no right to such a rebate.

The mistake was not discovered until a staff member at the private company made and enquiry to RSK, saying the payment looked strange. The Kastljós current affairs program on RUV TV made the revelation last night, DV.is reports.

The Kastljós story was based on a leaked internal memo from the RSK commission board dated February this year. The memo states that two such cases arose in January in which large sums of money were reimbursed to companies with no right to rebates. Had the mistakes not come to light, it could have led to over a hundred million krónur disappearing from the treasury.

The television program detailed two cases where money was paid out by mistake – the second of the companies receiving ISK 108 million (USD 962,000/EUR 695,000).

The same RSK staff member was responsible for both cases and has since been sacked from his job. The incidents are being viewed as mistakes and no criminal intent is suspected.

It is, however, difficult to know for sure whether such erroneous rebates have been made before, without detection.

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