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Article: Mobility aids: the EC is cracking down on member states that grant tax incentives only to domestic retirement plans. Mark Sullivan explains how this will affect firms that employ people across borders. (Pensions).
- Article from:
- Financial Management (UK)
- Article date:
- April 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 Chartered Institute of Management Accountants (CIMA). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In an unprecedented step, the European Commission has taken action against six countries over the unfair treatment of tax on pensions affecting the mobility of labour in Europe. This move should create a number of administrative and financial benefits for multinationals operating across the EU.
The EC's action against Denmark and infringement proceedings against Belgium, Spain, France, Italy and Portugal are intended to encourage labour mobility. The EC believes these countries are breaching their treaty obligations by granting tax incentives to domestic retirement plans while denying the same treatment to pension fund contributions in other member states. The ...