EU member states are flouting European law requiring them to give tax relief on contributions paid to foreign pension funds, according to a formal complaint to be filed with the European Commission by the continent's most powerful pensions pressure group.

The European Federation for Retirement Provision and PricewaterhouseCoopers, the accountancy firm, said they would shortly lodge the complaint with László Kovacs, European Commissioner for Taxation and Customs Union, urging him to take tough action against the discrimination.