Norway's five largest salmon companies have paid out NOK 26.75 billion (€2.6 billion/$2.9 billion) in dividends to shareholders over the past three years, driving them to consider shifting business from Norway if they have to pay additional taxes for the use of Norwegian natural resources according to Helge Mogster, the salmon billionaire and Leroy Seafood's principal owner.

"If salmon tax is implemented, all investments in Norwegian fish farming will stop immediately," said Mogster, speaking to IntraFish sister publication Dagens Naeringsliv.

This comes after a committee appointed by the Norwegian government to evaluate aquaculture taxation released a report recommending the basic rate be set at 40 percent, a move that could bring in proceeds of around NOK 7 billion (€690 million/$770 million).

The Mogster family's investment company Laco is the largest owner of Leroy Seafood, which in the last three years has paid out NOK 3 billion (€297 million/$329 million) in dividends.

Around 70 percent of the proceeds earned by the family goes to the state, claims Mogster, whereas if one was abroad or a tax refugee, all the money would "go straight into one's pocket," Mogster said.

More tax 'unaffordable'

Leroy Seafood had an after-tax profit of NOK 8.9 billion, 33 percent of which was paid in dividends. Mogster said the figures show the company can't pay additional taxes.

"Most of the money earned in Norwegian fish farming is plowed back into the districts, and now the money will be plowed into Oslo," Mogster said. "They take out the value in Norwegian fish farming."

Mogster cited the worst thing about the additional tax proposal came from a "blue government," which has increased the political risk of operating salmon farming in Norway.

"We have lived in a war zone since Erna [Norwegian Prime Minister Erna Solberg] came into power," Mogster said. "We have a government that is not friendly to the coast and is about making as much money as possible in Oslo."

What about the rest?

The world's largest salmon company, Mowi, paid 98 percent of its profits in dividends to the owners, which was about NOK 15.96 billion, in the last three years.

However, the payment of dividends does not affect the company's view on salmon tax, Chairman Ole Eirik Leroy told DN.

There is a real danger of flagging out of the country, while countries such as the United States and China are building land-based farms and sea cages, Leroy said.

"We know that there is intense activity in many countries to develop farming closer to the markets," Leroy said. "It is a global competition to attract capital for salmon farming and we are continuously assessing new technologies and where in the world we should invest."

Grieg Seafood Chairman Per Grieg also fears salmon tax will lead to flagging out, despite the companies' record dividend payments.

"For the last three years, salmon farmers have been making a lot of money," Grieg said. "I have lost and made a lot of money in my 25 years in farming and built great value and almost all the money we make we reinvest."

Aquaculture

Norwegian salmon billionaire takes swipe at new tax proposals