COPENHAGEN: The PensionDanmark has received more than DKK200m in value-added tax compensation after its victory over the Danish government in the European Court of Justice (ECJ).
The DKK170bn labour market pension fund argued that defined contribution (DC) schemes shared enough characteristics with special investment vehicles (SIV) to be exempt from VAT charges on administration and investment management services, counter to the view of the Danish tax authority (Skatteministeriet).
The ECJ ruled in PensionDanmark’s favour, with the tax authority now settling with the scheme to the tune of DKK200m plus interest. ATP took the legal case on behalf of PensionDanmark as it believed it should not be charging its client VAT for services.