Court Rules Pension Fund Not a Common Investment Fund Due to Lack of Investment Risk

• The court ruled that the pension fund cannot be considered a common investment fund.
• It was not proven that pension rights and payments depend primarily on investment results.
• Participants do not bear investment risk.
• The pension fund is not comparable to other funds classified as common investment funds.
• The appeal was dismissed.
• The court posed questions to the European Court of Justice regarding the interpretation of the VAT directive.
• The European Court of Justice clarified that participants are considered to bear investment risk only if pension amounts depend primarily on investment results.
• Factors such as years of pension accumulation and salary are not relevant in this assessment.
• The risk being individual or collective and employer guarantees are relevant but not decisive factors.

Source: uitspraken.rechtspraak.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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