STOCKHOLM, Sweden, June 26, 2003 (PRIMEZONE) -- The European Court of Justice has ruled in favour of Skandia (Other OTC:SKNFF) (LSE:SDIAq) in the so-called Pan-European Pensions case, which was successfully brought before the Court by Jan-Mikael Bexhed, Skandia's General Counsel. The case concerns the right for employers to claim tax deductions for premiums toward occupational pension plans sold by life assurance companies domiciled in another EU country.
In principle, it has already been possible to sell pension insurance plans across national borders within the EU, but this has not worked out in practice due to discriminatory national tax rules. Premiums toward occupational pension plans with Swedish life assurance companies have been tax-deductible immediately, while deductions for occupational pension plans secured through insurance in another EU member state have not been granted until the pension was paid out. Similar tax rules exist in many other countries within the EU. The European Court of Justice has now ruled that such national tax rules are in breach of Community law and therefore may not be used.
"Certainly, we are happy that the European Court of Justice has ruled in our favour. This means that in time more players will be able to work full out in one and the same market," commented Jan-Mikael Bexhed. "The decision is an important step toward an open European market for occupational pensions, even if there is still a long way to go before this is a reality."
Skandia, which is already active in most European countries, welcomes the European Court's decision. Through its "Specialists in Cooperation" concept, Skandia has during the years contributed to a more healthy competitive climate for both products and markets.
Jan-Mikael Bexhed has previously successfully represented Skandia in two land mark cases in the European Court of Justice. The so-called Premium tax case also known as the Safir case from 1998 concerned a Swedish tax that was levied on premium payments on premiums paid to non Swedish life assurance companies. The Five Per Cent case, from 1999, concerned a Swedish legislation which prevented insurance companies from making investments representing more than five per cent of the votes in other companies.
For further information, please contact: Jan-Mikael Bexhed, EVP and General Counsel, tel. +46-8-788 25 00 Gunilla Svensson, press secretary, tel. +46-8-788 42 97
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