Judgment_paragraph 63 · J.B.G.T. Miljoen and Others v Staatssecretaris van Financiën (C-10/14, C-14/14, C-17/14)

63Since that provision derogates 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 FEU Treaty. The derogation in Article 65(1)(a) TFEU is itself limited by Article 65(3) TFEU, which provides that the national provisions referred to in paragraph 1 of that Article ‘shall not constitute a means of arbitrary discrimination or a disguised restriction on the free movement of capital and payments as defined in Article 63 [TFEU]’ (see, to that effect, judgment in Welte, C‑181/12, EU:C:2013:662, paragraphs 42 and 43 and the case-law cited).