European Court of Justice opens the way for pan‐European occupational pensions

This paper is largely based on the European Court of Justice’s (ECJ’s) judgment of 26th June, 2003 in Case C‐422/01 Skandia and Ramtedt v Riksskatteverket (the judgment). The author was counsel for Skandia and Ramstedt in the ECJ. In the judgment the ECJ has maintained that national tax legislation regarding employer‐paid occupational pension insurance contravenes EC law by discriminating against insurance taken out with an insurance company in another member state. This legislation is, therefore, illegal and may not be applied by national courts and authorities. In its judgment the ECJ rejects the argument that fiscal discrimination is necessary in order to ensure fiscal cohesion, the effectiveness of fiscal controls, the need to preserve the tax base or competitive neutrality. The judgment concerned Swedish tax legislation but the ruling is applicable in all member states.