65In its judgment in National Grid Indus (C‑371/10, EU:C:2011:785), the Court took the view, with regard to national legislation under which the transfer of the place of effective management of a company established under national law to another Member State resulted in the immediate taxation of the unrealised capital gains relating to the assets transferred, whereas such gains were taxed in the national context only where they were in fact realised, that such a transfer could not mean that the Member State of origin had to abandon its right to tax a capital gain which had been generated within the ambit of its powers of taxation prior to the transfer. The Court thus held that, in accordance with the principle of fiscal territoriality, a Member State was entitled to charge tax, at the time of that transfer, on the capital gains arising which had been generated within its territory. Such a measure was intended to prevent situations capable of jeopardising the right of the Member State of origin to exercise its powers of taxation in relation to activities carried on within its territory, and could therefore be justified on grounds connected with the preservation of the allocation of powers of taxation between the Member States (see, to that effect, judgment in National Grid Indus, C‑371/10, EU:C:2011:785, paragraph 46 and the case-law cited).
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