Jun
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Heikki Antero Pusa [2004]
June 21, 2007 |
In this case, the ECJ examined whether the Finnish tax legislation on pensions could place at a disadvantage its nationals only because they had exercised their right to free movement and residence in another Member State, and hence leading to inequality of treatment.
Mr. Pusa a Finnish national exercised his free movement right after retirement and moved to Spain. As he had debts in Finland, the Finnish collector seized part of his Finnish old age pension. However, as Pusa was a resident of Spain, the pension was subject to tax in Spain. Pusa considered that as a Spanish resident he was prevented from enjoying the freedom guaranteed by the EC Treaty because the collector could only take into account Finnish withholding tax on the pension, and not the Spanish income tax that Pusa had to pay.
The ECJ ruled that, as an EU citizen, Pusa was allowed to free movement within the Member States without being discriminated.
This is the first case in which the ECJ has ruled in a tax-related case that EU citizenship and the free movement right within the Member States grants an individual the protection of the EC Treaty.
The ECJ also ruled that the Finnish regulations are not in conformity with EU legislation, as they do not take into consideration the tax paid or payable in another EU Member State.
Text of the ECJ judgment
Text of the AG opinion