The judges of the Court of Justice of the European Union (CJUE) ruled in a judgment of Thursday 14 March in Case C-372/18 that the income from the assets of residents of a Member State insured under the Swiss social security scheme or of another Member State may not be subject to welfare contributions intended to finance social security benefits in their State of residence.
In 2016, the tax authorities made a couple of French tax residents insured under the Swiss social security scheme in respect of income from assets received in France subject to contributions and deductions allocated to the National Solidarity Fund for Independent Living (CNA).
Considering that the benefits financed by the CNA were social security benefits, and given that they are insured under the Swiss social security scheme, the spouses challenged this liability before the French courts. They are based on Regulation 883/2004 on the coordination of social security systems, which provides that persons to whom this Regulation applies are subject only to the legislation of a Member State, the Swiss Republic being considered here as a Member State.
When the dispute was referred to it, the Nancy Administrative Court of Appeal referred the matter to the Court for a preliminary ruling in order to determine whether the benefits financed by the contributions and levies allocated to the CNA, namely the personal independence allowance (APA) and the disability compensation allowance (PCH), are considered as social security benefits.
In their judgment, the judges recalled that a benefit can be considered as a social security benefit if it is granted without any individual and discretionary assessment of personal needs of the beneficiaries and if it relates to one of the risks referred to in Regulation 883/2004.
The judges also point out that taking into account the beneficiary's resources when calculating the amount of benefits - which must themselves be granted on the basis of objective and legally defined position - does not involve an individual assessment of the beneficiary's personal needs, which is the case in this case.
In addition, the Court considers that the assessment of loss of autonomy and disability is based on objective criteria. Hence the fact that the benefits concerned are social security benefits and must therefore be analysed in the light of Regulation 883/2004.
It should be recalled that the problem of border residents is at the heart of the current and delicate interinstitutional negotiations (trilogues) on the revision of the Regulation in question (see EUROPE 12213/22).
See: http://bit.ly/2T2TE2h (Lucas Tripoteau)