CJEU allows restriction on free movement of capital
The CJEU here considered the scope of the exception to the free movement of capital contained in Article 64(1) TFEU. This allows restrictions on capital movements that were adopted prior to 31 December 1993 and which involve direct investment, establishment, the provision of financial services or the admission of securities to capital markets. The court notably gave a broad interpretation to Article 64(1) and held, contrary to the findings of the Dutch Regional Court of Appeal, that the exception was not limited to restrictions on the movement of capital which relate solely to the categories referred to in Article 64(1). As such, it could apply to general measures, such as the extended time-period for the recovery of tax on foreign income here, provided that the particular case involved one of the prescribed types of capital movement.
This article appears in the JHA February 2017 Tax Newsletter, which also features:
