Financial Services Industry
Industry: Email Alert RSS FeedNews: Pan-European pensions move closer.
Pensions Week, October, 2002
A UK pensions tax test case was given the green light last week as the European Court of Justice ruled in favour of Danner and brought the prospect of common European tax laws on pensions closer.
The case involved a member who contributed to two German pension schemes as well as a Finnish scheme. Danner argued that the stricter Finnish tax system was in breach of European law. The ECJ ruled that Finnish tax provisions, which prohibit tax relief on contributions from Finnish taxpayers to a foreign pension scheme, are contrary to Community law.
Under the judgment, EU member states will be required to treat pension contributions to other states on the same tax basis as if they had been made in the same country.
Mark Sullivan, European partner at...
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