DENMARK - The Danish government has been found to have breached European law by not granting tax deductions on contributions made under contracts with foreign pension institutions.
The European Court of Justice ruled against the Danish government in a case brought forward by the Commission of the European Communities.
The commission accused the government of breaching the European law governing the freedom of movement for workers and capital, the freedom to provide services and freedom of establishment.
Denmark allowed tax exemptions for pension contributions made with Danish firms, but those paid into foreign pension institutions were fully taxed.
The Danish government had filed a plea calling for the case to be declared inadmissible, however the request was rejected by the ECJ.
The court ruled in favour of the commission and said the Danish government had failed to fulfill its obligations to the EU law in question.
The ECJ declared that by enforcing a system which does not grant tax deductions on contributions paid into pension institutions in other EU member states the government had breached the law.
The ruling is expected to open Denmark’s doors to EU firms to do business in the country.
The commission was said to have taken action against other EU countries over similar discriminatory tax breaks.
Trustees lack expertise, time and resources to develop effective communications on technical pensions issues and need professional help, a major review of the British Steel saga has concluded.
In this week's Pensions Buzz, we want to know if you think trustees should consult directly with members before agreeing to a DB superfund buyout.
Thousands of savers taking tax-free lump sums ahead of retirement are at risk of a pensions shortfall in later life due to neglecting their remaining pot, Zurich has warned.
Professional Pensions is looking to update its list of pensions master trusts in the UK ahead of authorisation. Can you help?