Summary International and European tax law

European Tax Law Lesson 9 Free movement of capital  Free movement of capital o Art. 63 TFEU  (1) Within the framework of the provisions set out in this Chapter, all restrictions on the movement of capital between Member States and between Member States and third countries shall be prohibited.  unilateral grant of the free movement of capital in relation with third states introduced by the Maastricht-Reform – entered into force on 1 January 1994 (and the monetary union €)  (2) Within the framework of the provisions set out in this Chapter, all restrictions on payments between Member States and between Member States and third countries shall be prohibited.  Free movement of capital – Main topics (I) o Taxation in the state of residence of dividends from shareholdings in foreign companies (unless not covered by the freedom of establishment)  Leading cases: Case C-319/02(Manninen) o Deduction of interest on loans by the borrower: Case C-282/12 (Itelcar), ECJ 3 October 2013  o Deduction of gifts to legal entities established and recognised as charitable institutions in another Member State:  Case C-318/07 (Persche), ECJ January 2009: Denial of the deduction of gits to foreing charitable institutions for tax purposes is not allowed  Free movement of capital – Main topics (II) o Additional administrative burdens for non-residents who invest in the host state,  i.e.: the obligation to appoint a representative in the host state are not compliant with the free movement of capital: commission/Portugal, ECJ 5. May, 2011 C-267/09 o Specific provision for non-residents with regard to