ECJ ruling on Denmark's foreign pension product taxation signals pan-EU market |
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Published
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Tue, 30 Jan 2007 14:29
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LONDON (AFX) - The judgement passed today by the European Court of Justice (ECJ) against Denmark's preferential fiscal treatment of domestic pension products is another step towards a cross-border pension and insurance market, according to consultancy Hewitt Associates.Leonardo Sforza, head of research and EU affairs at Hewitt Associates, has welcomed the ECJ's judgement on the case brought by the European Commission against Denmark's national tax rules on pensions.The Luxemburg-based court ruled that the country does not guarantee a equal treatment regime between national and foreign based pension plans.The ECJ declared Denmark is in breach of EU law by maintaining in force a system for tax deductions and tax exemptions for payments granted only to pension institutions established in Denmark.Tax relief has not been granted for payments made under contracts entered into with pension institutions established in other member states.'This judgement will contribute to opening up the pension and insurance market to cross-border operations,' Sforza told Thomson Investment Management News.'It will ultimately benefit corporate pensions' plan sponsors and beneficiaries, currently excluded from tax relief when using foreign based service providers and institutions,' Sforza said.The Danish ministry of economy and business affairs was not available for comment.By Cecilia Valente: +44 (0) 20 7422 4925; cecilia.valente@thomson.comcv/jad/jsaCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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