The Austrian Administrative Court has requested a preliminary ruling from the European Court of Justice (ECJ) as to whether Austria’s tax rules relating to the taxation of foreign-source dividends is in accord with the free movement of capital principle as it applies to EU Member States and third countries.
The free movement of capital generally can not be restricted by treating income from foreign investments less favorably than income from domestic investments if, as a result of such treatment, investments in companies established in other Member States are less attractive to an investor than investments established in the investor’s Member State. This request for a preliminary ruling adds to the number of cases pending before the ECJ on the scope of the free movement of capital principle in the context of third countries.
Attachments
Austria: Case Referred to ECJ on Tax Treatment of Inbound Dividends, May 2005 (676 KB)
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Page Last Updated: May 31, 2005
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Source: Deloitte Touche Tohmatsu (English)
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