In Santander Asset Management SGIIC SA v Directeur des residents à l’étranger et des services généraux (CJEU Case C-338/11) the CJEU held that Articles 63 and 65 of the TFEU ‘must be interpreted as precluding the legislation of a Member State which provides for the taxation by means of withholding tax of nationally-sourced dividends when they are received by undertakings for collective investments in transferable securities resident in another State whereas such dividends are exempt from tax when received by undertakings for collective investments in transferable securities resident in the Member State in question’.
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Why it matters: The CJEU held that the relevant French legislation contravened the TFEU. As some commentators have suggested this decision could have implications for other tax authorities in Member States which apply withholding tax...
