Judgment_paragraph 63 · EV v Finanzamt Lippstadt (C-685/16)

63Consequently, it must be held that, by submitting the tax deductibility of dividends paid by subsidiaries established in non-member States to stricter conditions than those applying to dividends paid by resident companies, the legislation at issue in the main proceedings is likely to dissuade resident parent companies from investing their capital in subsidiaries established in non-member States. To the extent that the income from capital originating in non-member States receives less favourable tax treatment than dividends distributed by resident companies, the shares of companies established in non-member States are less attractive to resident investors than those of resident companies (see, by analogy, judgment of 24 November 2016, SECIL, C‑464/14, EU:C:2016:896, paragraph 50 and the case-law cited).