This thesis examines the Danish reaction to the EC judgement of 30. January 2007 in the case C-150/04. Here it was established that Denmark had failed to live up to its obligations according to EC treaty articles 39, 43 and 49, in regards to its pension legislation. Denmark was in conflict with its obligations due to treating the contributions to pension schemes in Denmark differently from those paid to schemes in other member countries, in regards to subsequent deductions on taxable income. The Thesis provides a rapid overview of the political development of the EU, to its present state, and the information exchange that precedes the Commissions decision to sue Denmark. The different arguments made by the parties in the case, for and against the restrictions in Denmark's national legislation, have been examined. In the discussion of the verdict, preceding verdicts of related cases is used, so the basis of the final verdict is made obvious. Then follows a section of the basic types of pension that can qualify for tax preferential treatment, in regards to the Danish pension act (PBL). The conditions in which an account in another member country can get equal tax preferential treatment as accounts in Danish pension fund's. The most important conditions of accounts, for obtaining tax preferential treatment, is to be comparable to a Danish chap. 1 account, and the owner of the account has to accept taxation of payouts in regards to Danish tax rules. Furthermore the pension fund has to supply information relevant to the Danish authority's when a persons taxable income for the year is determined, and the pension fund's has to withhold and pay the applicable tax. A pension fund's pension scheme can be pre approved for tax preferential status in Denmark. The risk of double taxation on accounts in other member states is evaluated. Double taxation can arise because of several different conditions. Three typical situations that are likely to exist when a person retires, is examined, and two of these is reviewed in detail in regards to Denmark's double taxation agreements with EEC countries. A further reaction to the verdict in case C-150/04 is a change in the Danish regulations of taxation on the yield of pension accounts. The unit of taxation has shifted from the pension fund to the individual account. As the taxation level was kept unchanged, one would initialy assume that there would be no big difference, but further discussion reveals a problem in relation to the tax paid in other country's on the obtained yield. The thesis looks at Denmark's ability to combat tax evasion through cooperation and information exchange as outlined in directive 77/799 EEC. The directive 76/308/ECC compels member states to assist each other in the collection of taxes, and in this instance, in getting citizens and pension fund's to pay the taxes that are due on the account in other countries. The perspective part of the thesis suggest a solution to the difficulty of obtaining the desired tax revenue, by taxing the contributions to pension accounts. This would yield a significant reduction in complexity and difficulty, compared to the present regime. Although this could have an undesirable negative effect on the Dane's contributions to their pension account. As such the thesis don't provide the answer to a complex societal problem, but doe's provide the reader with insight into the Danish government's best answer to this question, which is the current regulatory regime.
|Uddannelser||Cand.merc.aud Regnskab og Revision, (Kandidatuddannelse) Afsluttende afhandling|