Acceso usuarios
Ryan D. Murphy
The Court's judgment in FII (No.2) all but ensures that the United Kingdom's (historic) tax treatment of foreign-sourced dividends will be deemed unlawful when the matter returns to the domestic court. Behind the simple clarification of the earlier judgment in FII (No.1), the second ruling gives much more detailed guidance to national courts as to how to assess the compatibility of systems of direct taxation with the Treaty freedoms. In this respect, the Court applies a thoroughly orthodox internal market framework. The judgment also clarifies the scope of application of the free movement of capital in third-country situations, indicating a broad approach while still trying to minimise the risk of abuse by companies from outside the EU Member States. This comment addresses and evaluates all these issues, and also questions the extent to which the budgetary consequences of a judgment should influence the Court in its decision-making.
