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European Union Matters: Safir v Skattemyndigheten I Dacarnas Lan - European Court of Justice; April 1998

United Kingdom
28/01/1999
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Safir v Skattemyndigheten I Dacarnas Lan European Court of Justice; April 1998

This case concerned a Swedish woman, Jessica Safir, who purchased life assurance with a company based in the UK, yet still had to pay withholding tax in Sweden on the insurance premiums which she paid. The decision centred on Article 59 of the Treaty of Rome which states that national legislation cannot impede a provider of services without excuse. The ECJ held that the withholding tax did indeed breach Article 59, as it made the provision of services between Member States more difficult than if the service had been provided within a Member State.

This case is seen as one which could open up the possible establishment of pan-European pension schemes. The tax regimes of different Member States do discriminate against membership of pension schemes established in other Member States. For example, it would be contrary to current UK tax regulations for an Irish pension fund to be set up for a UK employee. If such a case were successfully brought, pan-European pension schemes could be set up..

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