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.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.