Tax Refunds for Pension Schemes

    View Authors July 2009

    Tax Refunds for Pension Schemes

    Following a recent European Court of Justice ruling (in the case of Aberdeen Property Fininvest Alpha Oy), pension schemes should not be subject to withholding tax on dividends received from investments in other EU countries (unless that country applies such withholding tax in its own country to its own pension funds).

    We understand that the Netherlands has begun to make repayments of withholding tax, whilst many other EU countries are currently examining their own domestic tax laws.

    Pension scheme trustees should check with their investment manager or custodian whether such withholding tax has been applied and whether refund claims have been submitted to the EU countries in question. Submission of a refund claim is advisable but refunds are unlikely to be swift or straightforward in most cases.

    In May 2008, international law firm Hammonds became a limited liability partnership. Hammonds LLP and its affiliated undertakings has offices in Birmingham, Leeds, London and Manchester in the UK, and in Berlin, Brussels, Beijing, Hong Kong, Madrid, Munich and Paris.