UK pension funds in line for £92m refund

Story sourced from CCH website 29/01/09: www.cch.co.uk

Over €100m (£92m) could be refunded to UK pension funds as part of a ruling issued by Dutch tax authorities.

The ruling states that the Dutch tax authorities should not have levied a 'withholding tax' on dividend payments on UK pension funds located within the European Union but outside the Netherlands.

Further bodies in other EU member states could also be liable for refunds on Dutch withholding taxes, which could cost the Dutch Revenue up to €500m.

Chris Morgan, head of KPMG's international corporate tax practice in the UK said it was a 'ground breaking ruling'.

'Hopefully this decision will pave the way for other EU member states to follow suit and repay other reclaims for withholding tax lodged on the same grounds as in the Netherlands. Such claims have been brought against at least 12 member states of the EU,' he added.


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