Here is an interesting judgment coming from the EFTA Court in Case E-26/13 The Icelandic State v Atli Gunnarsson on 27 June 2014.
The case concerned Mr. Gunnarsson and his wife, Icelandic citizens, who resided in Denmark from 24 January 2004 to 3 September 2009. At the time, the couple’s total income consisted of unemployment benefit that Mr Gunnarsson’s wife received in Iceland and of Mr Gunnarsson’s own disability benefit together with benefit payments he received from two Icelandic pension funds. Mr Gunnarsson paid taxes on his income in Iceland, and claimed that he was overcharged in the period from 1 May 2004 to 1 October 2009 because he was prevented from utilising his wife’s personal tax credit while they resided in Denmark. Under the Icelandic tax legislation applicable at the time, the couple had to reside in Iceland for Mr Gunnarsson to be entitled to utilise his wife’s personal tax credit in addition to his own.