CEA welcomes ‘Danner’ decision as positive
BRUSSELS -The Danner decision of the European Court of Justice gives a new impetus to a single market in supplementary pensions, says the Comite Europeen des Assurances (CEA), which represents the European insurance industry.
“With the Danner judgement we are a step further,” says the Brussels-based CEA. The taxation aspects of pensions had not been addressed in the proposed directive nor did the ECJ’s communication calling for the elimination of tax barriers on occupational pensions have any binding effect.
The ECJ decision required member states to accept the deductibility for income tax purposes of contributions to pension schemes set up abroad, provided the member state accepts the equivalent deductibility on contributions to supplementary schemes. “Member states can no longer cite mandatory reasons of general good to justify a national discriminatory tax measure,” says the CEA.
As a consequence, employees will no longer be penalised fiscally when taking out a voluntary pension insurance with a company in another EU country. The CEA believes the move will encourage EU-based companies to offer their services on a cross-border basis.
The Danner result is welcomed by the insurance body as a “positive signal in favour of cross-border supplementary retirement provision activities”.