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Foundation says EC to sue Dutch government

NETHERLANDS - The European Commission is to take the Dutch government to the European Court of Justice over double taxation practices which are reducing pensions, according to the Foundation of Migrant Workers, the Stichting grensarbeid.

A spokesman for the European Commission has declined to comment on the issue, however, Ivan Cools, a member of the North Brabant-based foundation's board, said the Commission had decided to sue the Dutch government and is expected the relevant papers to be filed very soon.

The foundation said it had complained to the Commission its members who work in Belgium but live in the Netherlands are currently paying taxes in both countries.

It also claimed following the implementation of a new health insurance law in the Netherlands, Dutch healthcare taxes had reduced the net income of retirees who live in the Netherlands but who worked and paid taxes in Belgium by 20%.

Cools added its legal advisers have pointed out under European law, taxation must not be higher than the current state pension payout.

The Commission has charged the Dutch government is taxing pension premiums at too high a level, Cools said.

This double taxation issue was previously reviewed by the Dutch parliament but no action had been taken.


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