32In so far as that provision of Article 58 EC is a derogation from the fundamental principle of the free movement of capital, it must be interpreted strictly. It cannot therefore be interpreted as meaning that all tax legislation which draws a distinction between taxpayers on the basis of their place of residence or the Member State in which they invest their capital is automatically compatible with the Treaty (see Jäger, paragraph 40; Eckelkamp and Others, paragraph 57; and Arens-Sikken, paragraph 51).
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