Judgment_paragraph 31 · Centro di Musicologia Walter Stauffer v Finanzamt München für Körperschaften (C-386/04)

31However, Article 73d(1)(a) of the EC Treaty, which, as a derogation from the fundamental principle of the free movement of capital, must be interpreted strictly, cannot be interpreted as meaning that any tax legislation making a distinction between taxpayers by reference to their place of residence or the Member State in which their capital is invested is automatically compatible with the Treaty. The derogation in Article 73d(1)(a) of the EC Treaty is itself limited by Article 73d(3) of the EC Treaty, which provides that the national provisions referred to in Article 73d(1) ‘shall not constitute a means of arbitrary discrimination or a disguised restriction on the free movement of capital and payments as defined in Article 73b’ (see Case C-319/02 Manninen [2004] ECR I-7477, paragraph 28).

Centro di Musicologia Walter Stauffer v Finanzamt München für Körperschaften (C-386/04)

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