The
reason is to avoid that Norwegians buy or rent cars abroad (where the price
is 50-75% of Norwegian retail price) and use them at home without importing them
and paying the custom tax and different import fees which may be as high as
100 % of the actual purchase value. (Cars sold in Norway are probably the most
expensive in the world.)
If the
owner is present in the car while a Norwegian is behind the steering I don't
think would result in confiscation of the vehicle, but it would certainly be the
fact if the Swedish friend would be abscent from the car.
I
think there is some few exceptions, e.g. using rental cars from world
famous companies for a very limited time when returning from
abroad, and for Norwegian nationals as me emigrated
from the old country. Some years ago it was quite popular for
Norwegians usually living next to the border to register their new car in the
name of Swedish friends, but for own exploitation inside
Norway. Very soon the interpretation of the law was tighten
up.
Actually the same problem one has today in Lithuania. Some criminals has
Byelorussian or Russian numberplates on their cars, in fear of getting their
vehicles confiscated by the court. The Lithuanian state cannot confiscate
foreign property for such a purpose. The official owners are very often old
ladies or drunkards who has accepted to rent out their name and address for a
small amount of dollars...
Jan