The European Parliament committee on economic and monetary affairs (EMAC), has unanimously voted in favour of the adoption of the draft report on taxation of occupational pensions by Dutch socialist MEP, Ieke van den Burg – throwing its weight behind the EC’s proposal for a communication on the fiscal treatment of pan-European pension arrangements.
The vote on November 5, moves the pensions taxation quandary a step closer to resolution, with a plenary vote on the issue expected by the European Parliament in December.
Van den Burg, the Parliament rapporteur on the taxation directive, has for the most part been supportive of the tax ‘communication’ strategy proposed by EC internal market Commissioner Frits Bolkestein.
Speaking to IPE about the EMAC vote, she said: “I’m quite happy with the outcome. It was almost unanimity in the vote and only Astrid Lulling (MEP) from Luxembourg could not agree because she dislikes the EET (exempt, exempt, taxed) principle, but she wasn’t supported by her group.”
She added that there were amendments from the European Peoples Party (EPP) and the Liberal Party and that a few minor compromises and changes were adopted.
“About 99% was what I proposed myself though,” she added.
The Dutch MEP says she is optimistic about the report’s chances of being voted through by the Parliament: “There was a broad support for this. There may be some discussions about some minor issues, but I think the most important things are the conclusion and the direction that we give to the Commission.”
In her report, van den Burg noted that the ‘unanimity’ requirement in the area of taxation for any progress at the European level created difficulties and urged the Commission to make full use of all its other Treaty of Rome powers.
In particular, she said, this meant bringing member states before the European Court of Justice (ECJ) if their tax provisions were deemed to hamper the free movement of persons.
The rapporteur says she would also like to see the Commission prepare something more substantial on pensions taxation for the EU Barcelona summit next spring.
“I would like to see the start of a co-ordination process and a method of dealing with the EET principle, rather than just an exchange of information. “I hope this report will stimulate the Commission to prepare something and also push the Council to invite the Commission to do this.”
She added: “ I want to get the tax question on to the agenda and I think it has to be included because it is linked to labour mobility and the future of pensions.”

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