The European Commission is taking Denmark to court and starting proceedings against the UK and Ireland for tax discrimination against pension funds based in other members' states.

The Commission is taking Denmark to the European Court of Justice because pension contributions paid to non-Danish pension funds are not tax deductible while contributions paid to domestic funds are. This is a violation of the rules that allow firms to provide services across the EU, and of the rule governing free movement of capital, the Commission said in a statement.