Forsikring & Pension (F&P) has called on the Parliamentary Ombudsman to intervene in a matter regarding the payment of value added tax (VAT) by Danish pension companies.

The association stated that despite an EU judgment in 2014 exempting Danish pension companies from VAT for their expenses for the management of pension schemes, they have paid the tax in the nine years since the ruling.

F&P said that the Tax Agency has neither refunded the estimated DKK 3.5bn paid in VAT, which F&P said the pension customers were entitled to, or changed the administrative rules to exempt pension companies from the tax.

Three pension companies agreed settlements with the government in 2015, but the rest of the industry were still waiting for repayment, according to F&P.

The association added that the registered claims for repayment, which total DKK 3.5bn, have been sent to the authorities but have not yet been processed.

F&P said that it had made numerous calls to the Tax Agency, but has now asked the ombudsman to look into the case.

“Danish pension companies and their customers are still waiting to be repaid DKK 3.5bn as a consequence of the judgment, but nothing has happened,” commented F&P managing director, Kent Damsgaard.

“It is completely unacceptable, and that is why we have now called on the ombudsman to look into the matter.

“The pension companies still cannot get a clear answer from the Tax Agency on what the VAT exemption covers, and thus the industry is also prevented from proceeding to the courts - simply because the Tax Agency during this period has failed to make decisions that could then be brought before the courts.

“The consequence is that Danish pension customers end up with an extra bill year after year.”

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