Can an EU country claim tax fees of an orphan pension refund of times where the affected person resided in another?
posted 3 years ago
Person A is an orphan and was moved from an EU country X to another EU country Y. Lately, his pension claims were successful and he has received a refund of all pension payments as he usually had received each month.
Unfortunately, the amount of the refund is as high as that it is obliged to taxing in Y. All requirements to claim the tax are fulfilled in country Y where Person A now resides and was moved to, although it is an orphan´s pension.
The problem now:
The corresponding tax authority of country Y claims the whole refund, although Person A did not even reside at that moment of time in the country nor had a bank account or anything else in Y.
It is important because if the amount of money to be taxed would be subtracted by the amount of money from the monthly payments where Person A wasn´t in Y, Person A would not be obliged to declare the tax and with that tax-free for that refund.
Is it correct that Y can claim the parts of the number of monthly payments (which are part of the refund) although Person A did not even reside at that moment in Y or is there any EU law that prevents that doing?